KLK ties up with Astra Agro Lestari

PETALING JAYA: Kuala Lumpur Kepong Bhd's (KLK) subsidiary KL-Kepong Plantations Holdings Sdn Bhd has entered into a joint venture agreement with PT Astra Agro Lestari Tbk (Aali), to take up a 50% stake in an existing company incorporated in Indonesia.
Through this proposed transaction, KLK will be bringing in its downstream expertise, whereas, Aali will be bringing in its local market insight to supply sourcing as well as significant supply of good quality raw material.
The proposed transaction is to be completed in the first quarter of 2015.
The JV company was incorporated in Indonesia by KLK on Oct 24, 1995 to partake in the business of refinery and trading palm oil refined products.
Aali is a leading palm oil producer in Indonesia in which its crude palm oil production is supported by 27 palm oil mills with a total production of 1,325 tonnes per hour.
Aali manages a total of 285,300 heactares of oil palm plantations in Sumatra, Kalimantan and Sulawesi. As of Sep 30, 2014 Aali's CPO production has reached 1.29 million tonnes.