FGV Inks MoU With Sinograin To Expand Its China Market

KUALA LUMPUR, May 15 (Bernama) -- Felda Global Ventures Holdings Bhd (FGV) has signed a memorandum of understanding (MoU) with Sinograin Oils Corporation to explore the feasibility of supplying and distributing palm oil products to penetrate China's midstream and downstream market. FGV Group President/Chief Executive Officer Zakaria Arshad said that FGV hoped to explore the opportunity to integrate the operations of its existing unit, FGV China Oils Ltd, in Dongguan, Guangdong, with Sinograin Oils' domestic operations to bring value and cost savings to both parties. In a statement Monday, he said the collaboration would also allow FGV to explore its downstream expansion in the supply, processing, packaging and distribution of blended oils, shortenings and specialty fats. Sinograin Oils is a unit of China Grain Reserves Corporation, a national organisation specialised in the operation and management of China's national grains and oil reserves, with integrated functions to purchase, store, transport, process and trade. It produces edible oils from soy beans, palm oil and other oils, as well as, distributes and sells their own brand of consumer edible oils direct to the domestic market. Sinograin Oils also imports 700,000 tonnes of palm oil products, annually. Zakaria pointed out that China is FGV's third biggest crude palm oil (CPO) market with 308,040 tonnes exported there in 2016. As the third largest of palm oil consumer in the world, China consumed 5.05 million tonnes of palm oil in 2016 compared with 2.02 million tonnes in 2001, he said. China's palm oil consumption is forecast to grow further, driven by the rise in the disposal income of its population and changes in income habits brought on by demand for healthier edible oils. "We want to expand our business in China and we believe FGV and Sinograin Oils can complement each other,” he added. -- BERNAMA