FGV makes further inroads into Myanmar

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) subsidiary FGV Myanmar (L) Pte Ltd has entered into a joint-venture agreement with Pho La Min Trading Co Ltd (PLM) to firm up FGV's venture into Myanmar in setting up rubber processing plants and scouting for greenfield and brownfield opportunities.
The agreement, which results in the creation of a joint-venture company (JVC), FGV Pho La Min Co Ltd, follows a memorandum of understanding signed with PLM in September 2012.
FGV will subscribe to a 51% stake in the JVC and PLM the remainder 49% stake.
FGV and PLM will build a modern processing plant in Myeik with a target capacity of 24,000 tonnes a year and another plant at Mon State, the development of 30,000ha of greenfield and scout for 10,000ha of brownfield opportunities.
PLM has strategically expanded its business portfolio in recent years and is currently looking at new markets around the world. FGV has been exploring potential in developing its upstream plantation sector as well as downstream business in Myanmar since 2010.
At the same time, FGV subsidiary Delima Oil Products Sdn Bhd has marketed palm-oil food products, particularly the SAJI cooking oil in Myanmar.
PLM mostly deals in the export of assorted types of Myanmar rubber. Through the joint venture, FGV aims to excel as a big player in Myanmar's agriculture industry as it forges a definite and formal business arrangement between the two parties.