KUALA LUMPUR: With a target to be a top 10 global sugar manufacturer and trader by 2020, MSM (M) Holdings Bhd (MSM) is making its way into the United Arab Emirates (UAE) starting December.
The venture will be done through its trading hub in Dubai, MSM Trading International DMCC, which will start operating on Dec1.
In a statement on Monday, the company said it targets to trade up to 200,000 tonnes of raw sugar and sell up to 250,000 tonnes of refined sugar there annually.
The Dubai venture is expected to build on MSM’s capabilities to become a global brand with a distinctive international structure, it added.
Its president and group CEO Datuk Sheikh Awab Sheikh Abod said: “MSM’s investment in Dubai recognises the unique size and opportunity the Middle East & North America (MENA) region and neighbouring Asia Pacific (APAC) region holds.
“Our existing client base in both regions and the potential to grow further makes this set-up perfect.”
With its footing in Dubai, MSM can diversify its income stream from foreign earnings through destination trading of raw and refined sugar on top of export sales of refined sugar.
Sheikh Awab said: “Due to the preferable time-zone and ideal location, we have selected Dubai, which sits in the middle of the global sugar trading routes such as Asia, Europe, and America.
“The location is also much closer to other big sugar players in the UK and Switzerland which will enable us to tap into their market research and other resources that will be much beneficial and advantageous to MSM.”
The expansion of its geographical footprint, the intent of increasing the efficiency, quality and services in the sugar supply chain will be more effective.
It said the establishment of MSM Trading in the Middle East will be supported by a representative office in Indonesia.
“Appointed as subsidiary for MSM Trading International (DMCC), the proposed Indonesia office is expected to operate in January 2016 and set to anchor growing demands in the region,” the commodities player said.
Recently, the company announced a US$259mil investment for the construction of Malaysia’s largest standalone sugar refinery in Tanjung Langsat, Johor.
The new refinery targets a production capacity of one million tonnes per year and it has the capacity to expandable by another one million tonnes.
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