Prime Minister Datuk Seri Anwar Ibrahim’s visit to China for the Nanning China Asean Expo saw the signing of an MOU between plantation giant Sime Darby Oils International Limited (SDO) and Guangxi Beibu Gulf International Port Group Ltd which will see the possibility of establishing a shortening trading distribution center in the Qinzhou Free Trade Zone of Guangxi Zhuang Autonomous Region in the People’s Republic of China.
It will also include the utilisation of existing bonded warehouses as a refined palm oil trading and distribution center in the Qinzhou Free Trade Zone and apply to become the delivery warehouse of the Dalian Commodity Exchange. SDO and BGP also intend to fully utilise the preferential policies under Guangxi Free Trade Zone for the said refined palm oil trading and distribution center.
In a statement, SD Oils said both companies are looking at marketing health products such as tocotrienol and red oil extracted from palm oil into the domestic market of the People’s Republic of China. The MOU aspires for a combined target trading volume for shortening and refined palm oil of approximately 500,000 metric tons a year.
SDO’s Managing Director, Mohd Haris Mohd Arshad said, the collaboration presents an exciting opportunity for palm oil products from the company to be sold and distributed in major consumer areas in mainland China, such as South China, Southwest China, and Northwest China through the Qinzhou Port. China has a combined population of about 1.4 billion.
“With the growing demand for palm oil products and the increasing trade volumes between China and Malaysia, we anticipate that this partnership will promote growth of sustainable supply chain and spur greater demand for palm oil in China” Mohd Haris said. He added that a successful collaboration with BGP would be another milestone for SDO as it builds its position as the preferred supplier of certified-sustainable, high value palm oil products for the global market.
