KUALA LUMPUR: FGV Holdings Bhd and South Korea’s Samyang Food Co Ltd’s proposed tie-up for the latter’s setting up of a halal production plant in Malaysia will not go ahead.
FGV said the MoU, which was signed on Jan 28,2019, was terminated yesterday. There were no reasons stated for the termination of the plant, it noted in a filing with the local stock exchange.
The MoU then was to establish Samyang‘s halal production facilities in Malaysia focusing on serving halal ramen and instant noodle products in Malaysia and global markets.
The collaboration was part of FGV’s strategic direction to expand the group’s downstream business by diversifying its product offerings and penetrating into new markets.
FGV had hoped its logistics and support business sector would also benefit from this partnership by providing a total logistics supply chain solution.
FGV had stated the global halal food market was one of the fastest growing segments in the food industry and was expected to reach more than US$740bil in value by 2025.
If the MoU had gone through, in addition to Samyang Foods’s new Halal manufacturing facility in Malaysia, this collaboration would have given FGV access to Samyang Foods supply chain, which includes cooking oil, vegetable fats and sugar for their existing Ramen Plant in Wonju, South Korea.
At the close of trade on Friday, FGV was up two sen to RM1.45.
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