Xinghe Partners, Asfar To Become Main Edible Oil Suppliers

KUALA LUMPUR, March 31 (Bernama) -- Xinghe Holdings Bhd, has entered into a strategic partnership with Arab Supplier Fabrication And Retail Sdn Bhd (Asfar), to enable both companies to become the main edible oil supplier in Jordan, the Middle East, Africa, Europe and South East Asia. Xinghe is a manufacturer of edible oils in China and Malaysia while Asfar is a manufacturer and exporter of palm-related products. In a statement Tuesday, Xinghe said the total investment value for the joint venture may come up to US$24.3 million (RM90 million) in total within the next five years. This investment would benefit the edible oil market of Malaysia, Jordan and Middle Eastern Countries. XingHe would provide the initial investment to build a new manufacturing plant in Malaysia to meet the order capacity while Asfar would invest US$2.7 million (RM10 million) to fund the operational expenses. (US$1 = RM3.70) This includes bringing in businesses, concession off-take and contracts from their existing networks in the Middle East and other regions. Also, Xinghe said the joint venture entity would be able to access the Jordanian market with the benefits such as special tax exemption, priority of using the port, warehouse facility and subsidies. Xinghe would also invest RM10 million into the packing and processing factory to produce several types of oils and fats such as peanut oil, soya bean oil, palm oil and blended oil to be exported to the Middle East and Africa, via importers and wholesalers. Once completed, Xinghe said the factory was expected to produce about 10,000 metric tons of oils per month which would allow the company to emerge as the largest edible oil supplier in the country. XingHe Executive Director Stephen Ng is confident the joint venture would generate additional revenue of between 15 and 20 per cent in the first year of its operations. -- BERNAMA