Sime Darby Plantation inks MoU with COFCO Group for palm oil-related ventures

PETALING JAYA: Sime Darby Plantation Bhd is partnering with COFCO Group Co Ltd to collaborate on a number of palm oil-related ventures including the areas of research, sales and marketing palm products in China.
The two companies today inked a memorandum of understanding (MoU), which was witnessed by Prime Minister Tun Mahathir Mohamad who was on a five-day working visit to the Chinese capital.
The MoU includes a joint research on the health benefits of palm oil, developing capabilities to manufacture specialty oils and fats, and establishing joint sales and marketing activities to promote high value differentiated palm products in China.
Through these initiatives, both companies are hoping to create greater demand for certified sustainable palm oil and increase trade volumes between the two companies.
Sime Darby Plantation executive deputy chairman & managing director Tan Sri Mohd Bakke Salleh said in a statement that the group is excited over the prospect of the collaboration with COFCO, a leading agriproduct merchandiser and food production company in China.
This MOU, he said, reflects the group's aspiration to be a leader in promoting the health benefits of palm oil and in producing certified-sustainable, high-value palm oil products for the global market.
"We look forward to seeing the positive results of combining Sime Darby Plantation's research and development capabilities with COFCO's expertise in advanced health-based food research. Under the terms of the memorandum, Sime Darby Plantation and COFCO will conduct further research on the health benefits of products such as palm tocotrienol, red palm olein, and palm kernel oil. In addition, both companies intend to develop specialty products such as premium shortening and bakery fats for the Chinese market, and to explore possibilities to co-manufacture these healthy oils and specialty fats in Malaysia."
"China is a key market for Malaysian palm oil and Sime Darby Plantation is proud to contribute towards increasing trade volumes and strengthening of relations between Malaysia and China. We view our cooperation with COFCO as a significant milestone in enhancing the commercial relationships of both countries. We would like to applaud the Ministry of Primary Industries for its role in initiating this collaboration and convey our highest appreciation to the government for its continuous support to the Malaysian palm oil industry," he added.