KUALA LUMPUR (Feb 20): Bamboo flooring manufacturer Kanger International Bhd will cooperate in developing Malaysia's bamboo industry into building material products with government agency Forest Research Institute Malaysia (FRIM).

In a filing with Bursa Malaysia, Kanger said it had today entered into a memorandum of understanding (MoU), which is effective for three years, with FRIM for the said initiative.

Among the initiatives outlined in the MoU, Kanger and FRIM will be required to cooperate in the establishment of a bamboo plantation on a commercial scale in Malaysia, and research and development to improve bamboo products, manufacturing processes or in new uses or products.

Kanger said the MoU is in line with the group's objective of diversifying its earnings base and exploring new markets by developing new bamboo related products and plantations.

"By leveraging on the expertise of FRIM, a reputable and leading government agency in Malaysia, Kanger envisages that a new bamboo industry sector in Malaysia can be developed at a faster pace and more quality and innovative products can be developed in the future," it said.

Kanger's share trade was halted at 11.17am and will resume at 2.30pm today. Its shares last traded 1.9% lower to stand at 26 sen for a market value of RM207.6 million.