Friday 29 Mar 2024
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KUALA LUMPUR (Jan 28): FGV Holdings Bhd has teamed up with South Korea-listed Samyang Foods Co Ltd to establish a halal ramen manufacturing facility in Malaysia for local and global markets.

FGV group chief executive officer (CEO) Datuk Haris Fadzilah Hassan said the collaboration is part of the group's strategic direction to expand its downstream business via wholly-owned subsidiary Delima Oil Products Sdn Bhd, by diversifying its product offerings and penetrating into new markets.

FGV's logistics and support businesses sector will also benefit from this partnership by providing a total logistics supply chain solution, he added.

In a statement, FGV said it has signed a memorandum of understanding (MoU) with Samyang Foods to explore the opportunity for both parties to establish the 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.

Under the MoU, Delima Oil Products can leverage on Samyang Foods' strong research and development (R&D) and global distribution networks to improve quality and expand the reach of its SAJI products regionally and globally.

"Delima Oil Products will benefit from Samyang Foods' over 50 years' experience in the ramen and instant noodle industry to strengthen its own products and brand positioning," said Haris.

The collaboration will also give FGV access to Samyang Foods' supply chain, which includes cooking oil, vegetable fats and sugar for the latter's existing ramen plant in Wonju, South Korea.

"Samyang is excited at the prospect of expanding our line of products to the vast and growing global halal market by collaborating with FGV as they have valuable experience producing high quality and halal food products," Samyang Foods CEO Kim Jung Soo said.

At 3.03pm, FGV shares were unchanged at RM1.02 today, with 6.55 million shares done, bringing a market capitalisation of RM3.72 billion.

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