PETALING JAYA: FGV Holdings Bhd is looking to partner with South Korea’s Samyang Foods Co Ltd for the establishment of Samyang Halal’s production facilities in Malaysia.
FGV told Bursa Malaysia that it had signed a memorandum of understanding (MoU) with Samyang today.
The production facilities will focus on serving halal ramen and instant noodle products for Malaysia and global markets.
FGV’s newly appointed CEO Datuk Haris Fadzilah Hassan said the collaboration is part of he group’s strategic direction to expand its downstream business by diversifying the product offerings and penetrating into new markets.
Its logistics and support businesses sector is also set to benefit from this partnership by providing a total logistics supply chain solution.
“With this MoU, FGV hopes to explore the opportunity for both parties to establish a halal ramen and instant noodle manufacturing plant in Malaysia. The global halal food market is one of the fastest growing segments in the food industry and is expected to reach more than US$740 billion in value by 2025,” Haris said.
FGV said the collaboration will also give FGV access to Samyang’s supply chain, which includes cooking oil, vegetable fats and sugar for its existing ramen plant in Wonju, South Korea.
Samyang is listed on the Korean Stock Exchange with a market capitalisation of KRW459.514 billion (RM1.68 billion). It is in the business of manufacturing and selling various food products such as ramen, snacks, dairy products, sauces, and frozen dumplings.
FGV noted that its downstream entity Delima Oil Products Sdn Bhd (DOP) can leverage on Samyang’s strong R&D and global distribution networks to improve quality and expand the reach of its “Saji” products regionally and globally.
“In addition, DOP will benefit from Samyang’s ver 50 years’ experience in the ramen and instant noodle industry to strengthen its own products and brand positioning.”
