FGV associate and partners to invest RM42 mln to expand Pakistan operations

FGV associate and partners to invest RM42 mln to expand Pakistan operations
Business & Markets 2013
Written by Bernama
Friday, 26 July 2013 19:52

KUALA LUMPUR (July 26): Felda Global Ventures Holdings Bhd (FGV) has announced that its associate company Felda Holdings Bhd (FHB), together with its joint-venture partners Mapak Sdn Bhd (MAPAK), plans to invest up to RM42 million to expand its bulking facilities and build a crushing plant in Pakistan.

FGV, the world's third-largest palm oil operator, said in a statement issued today the project in Pakistan is aimed at growing its midstream business.

FGV President and Chief Executive Officer Mohd Emir Mavani Abdullah said the proposed expansion of the bulking facility for an additional 40,000 tonnes will extend Mapak Qasim Bulkers’ services to beyond the needs of local refiners.

"Thus, Mapak Qasim Bulkers has the potential to become a distribution hub for the surrounding regions including to the Middle East/Africa.

"While nothing has been finalised on the expansion, we are looking at additional investments," said Mohd Emir.

The bulking facility operation at the Port Qasim Area, Karachi is MAPAK Qasim Bulkers (Pvt) Ltd (MQB), established in 1995 and with a current storage capacity of 120,000 tonnes of edible oil.

Together with Westbury Group, FHB is currently building a crushing plant at Port Qasim to crush canola and sunflower seeds which will be processed into their respective crude products for subsequent refining at its refinery.

MAPAK has already committed a total investment of RM27 million for the CONSTRUCTION [] of the plant, which has a crushing capacity of 300 tonnes per day and is expected to be completed by December this year.

"At the moment, FGV buys seeds in Canada for our crushing plant there. We plan to align our operations in Canada by buying the seeds from there for crushing at this new plant in Pakistan to leverage on price savings.

"Our long association with Westbury Group had enabled us to tap each other’s strengths leading to the success of our overseas operations. We now intend to extend that co-operation further," he said.

The recent development fits in with FGV’s strategy to move further midstream and downstream to sustain and protect its upstream business.

Meanwhile, FGV clarified that it is not able to comment on reports about Pakistan exploring growing oil palm in the coastal areas of Balochistan and Sindh.

Contrary to what has been reported, it does not see the potential of any upstream activity in Pakistan as climatic conditions there are not conducive to oil palm.

"FGV, therefore, has no intention to undertake oil palm PLANTATION [] activities in Pakistan.

"Although we have plans to expand our landbank for palm oil, rubber and sugar plantations, our immediate focus is on Southeast Asia given the suitability of the soil and climatic conditions in this region,” said Mohd Emir.

FGV's operations in Pakistan are through FHB’s investments in three joint ventures with two Malaysian companies and Westbury Group, one of the leading business houses of Pakistan in industrial, commercial and financial sectors. -- BERNAMA