(Corrects paragraphs 1 and 5 to show China is Felda Global's
third biggest market, not second, after company clarifies
KUALA LUMPUR May 15 Malaysian palm oil producer
Felda Global Ventures Holdings Bhd said it had signed
an initial deal with a unit of China's grain stockpiler aimed at
expanding its palm oil supply and distribution network in its
third biggest market.
The world's third-largest palm plantation operator said it
signed the memorandum of understanding with Sinograin Oils, a
subsidiary of state-owned China Grain Reserves Corp.
"We want to expand our business in China... With this MoU,
we hope to extend FGV's distribution and logistics network in
China through Sinograin's various strategic storage, processing
and distribution facilities," Felda Global CEO Zakaria Arshad
said in a statement on Monday.
The CEO also said Felda Global hopes to explore the
opportunity to integrate the operations of its Chinese unit with
Sinograin's domestic operations.
China is Felda Global's third biggest palm oil products
market with 308,040 metric tonnes of the edible oil exported in
Zakaria had told Reuters in March that the company was in
talks with several companies, including Chinese firms, to
establish partnerships to expand its distribution network and
(Reporting by A. Ananthalakshmi; Editing by Miral Fahmy)