Kuantan Flour Mills eyes entry into China

Kuantan Flour Mills Bhd (KFM), which needs to undertake a regularisation plan, is looking to expand its starch business and premix flour in China.

KUALA LUMPUR: Kuantan Flour Mills Bhd (KFM), which needs to undertake a regularisation plan, is looking to expand its starch business and premix flour in China.

KFM said on Friday it had inked an MoU with the  China's  Shou Guang Chang Tai Economic and Trade Co. Ltd (SCGT) for the proposed collaboration between both companies.

An alternative plan is for KFM to acquire a majority equity stake in SCGT.

The collaboration would enable KFM to expand its trading of starch business as well as its premix flour in China.

Based in Shouguang City, SGCT's core business in trading and retailing of corn, tapioca and food related products. 

KFM said SGCT has a stable import and export business with trading partners within China and Southeast Asian countries.

Meanwhile, KFM has submitted an application to Bursa Securities for the withdrawal of the proposed regularisation plan, which was submitted on Sept 29, 2017.

Instead it is seeking another nine months until Nov 7, 2018, to resubmit a revised proposed regularisation plan to Bursa Securities.