Sime in China palm oil venture

The group will take a majority interest in the joint venture with Dongguan Sinograin Oils & Grains Co Ltd (DSOG).

To be named Dongguan Sime Darby Sinograin Oil and Fats Co Ltd, it will undertake refining, storage and sales of palm oils and fats and other palm oil-related products in China.

In a statement issued yesterday, Sime Darby president and group chief executive Datuk Seri Ahmad Zubir Murshid said phase one of the proposed joint venture will commence through a tolling arrangement of crude palm oil.

It will subsequently embark on a future expansion which includes the construction of new refineries with storage facilities.
Sime Darby's latest move is part of plans to strengthen its range of businesses in China. It has established a presence in the industrial equipment, motor and utility sectors there.

"Investing in plantation downstream is further testament to our strategy of expanding into China and also completes the participation of all our core businesses there," said Ahmad Zubir.

He said Sime Darby, especially its plantation, industrial and oil and gas divisions, has benefitted greatly from China's strong economic growth and rising import of raw materials.

DSOG, a subsidiary of Sino Grain Corp, is involved in the manufacturing, processing, storing, selling and trading of grains and oil products in Dongguan, Guangdong Province.