KLK in JV with Indonesia's Astra Agro Lestari

KLK in JV with Indonesia's Astra Agro Lestari
Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Monday, 02 September 2013 17:55

KUALA LUMPUR (Sept 2): PLANTATION [] firm Kuala Lumpur Kepong Berhad (KLK) has roped in Indonesia-listed rival PT Astra Agro Lestari Tbk (AAL) to further penetrate the international refined palm oil market.

In a statement to Bursa Malaysia, KLK said its wholly-owned subsidiary KL-Kepong Plantation Holdings Sdn Bhd (KLKPH) had last Friday (August 30) entered into a joint venture (JV) with AAL.

"Pursuant to the JV agreement, KLKPH and AAL have subscribed for a 51% and 49% equity interest respectively in a company known as Astra-KLK Pte Ltd (JVCO), making the JVCO a subsidiary of KLK group. The JVCO is a newly-incorporated company in Singapore and has a registered and paid-up capital of S$2 million (RM5.14 million).

“The JV will facilitate the pooling of resources for processing and marketing in order to enjoy better economies of scale,” said KLK.

Both parties have agreed to co-operate with regards to the marketing of refined palm oil products and provision of logistics services related to the products, KLK said.