PETALING JAYA: Two Malaysian companies have joined forces to take on the global collagen industry which has thus far, mostly been dominated by the Western world.
Holista Colltech Ltd and Swang Chai Chuan (SCC) Ltd yesterday officially announced a strategic 50:50 joint venture (JV) through Ovicoll Pty Ltd, marking a significant milestone in their expansion plans.
Although local companies, Holista is listed in Australia while SCC is listed in Hong Kong.
Holista’s single largest shareholder Datuk Rajen M said the Asian market is a growing market for collagen, in line with people becoming richer and possibly, demanding collagen supplementation due to their lifestyles.
“We have a very strong patent position,” he said here yesterday.
The partnership between Holista and SCC will focus on developing a state-of-the-art sheep nano-collagen production facility in Collie, Western Australia.
The partnership is set to ride on the individual strengths of both companies, namely, the scientific innovation of Holista and the capital and distribution networks of SCC.
The JV’s ovine-derived collagen (sheep) is said to be “culturally and religiously neutral”, making it universally acceptable and a superior “halal” alternative for global markets, both companies said.
The facility for the production of this is located in Australia so as to utilise the world’s only sheep flock certified Scrapie-free and BSE Negligible Risk by the World Organisation for Animal Health.
Australia’s strict border controls since its federation in 1901 have preserved this unique disease-free status, Rajen said.
Under the JV, SCC is investing some RM5mil to fund the commissioning of the facility, and essential working capital to ensure rapid operational scaling.
“This investment has much potential,” SCC chairman and executive director and chief executive Soon See Beng said.
Meanwhile, Holista already has a binding agreement with American firm Regenerex Pharma Inc – an emerging player in wound dressing where collagen is used in wound management.
“Beyond wound management, the next phase is anti-ageing. Right now in the world, there is not enough collagen being produced, not enough for research purposes,” Rajen said.
The development of the advanced nano-collagen products at the Australian facility will be tailored for a few industries including the nutraceutical, food, cosmetic, and biomedical industries.
Holista focuses on science-backed biotechnology solutions, operating across divisions including dietary supplements, healthy food ingredients, ovine collagen, and infection control.
SCC, meanwhile, operates within the fast-moving consumer goods sector.
The group provides comprehensive distribution, logistics, and warehousing services in Malaysia for a wide array of food, beverage, and household products.
