26-27 Aug, 2015 - Bali, INDONESIA
The Westin Resort Nusa Dua, Bali
The Westin Resort Nusa Dua, Bali
As the market for oleochemicals in China is expected to grow by over 7% per annum, Mitsui & Co., Ltd. has signed an agreement with Malaysia's major company in the palm plantation and oleochemicals sector - Kuala Lumpur Kepong Berhad (KLK) for a oleochemical project in China.
Mitsui will invest a total of $44 million (approximately ¥5.3 billion) in the oleochemicals business operated by KLK in China.
Mitsui has also signed an agreement to acquire 20% of the shares in KLK Premier Capital Limited ("KLKPCL") from KLK. KLKPCL is an investment holding company owning 100% of the shares in Taiko Palm-Oleo (Zhangjiagang) Co., Ltd. ("TPOZ"), a manufacturer and supplier of oleochemicals based in Zhangjiagang City, Jiangsu Province.
Currently, the global oleochemicals market is worth around ¥7 trillion and the world market is expected to grow over 4% annually.
This is not the first time Mitsui and KLK have come together. They have jointly operated an oleochemicals manufacturing and supply business in Malaysia since 1991. But the new joint venture will be a first in China, which is expected to solidify the partnership between the two companies and broaden their business base through the expansion of their oleochemicals derivatives business.
KLK is regarded as one of the major oleochemicals companies in the region. In 2004, it had started TPOZ to produce and sell oleochemicals in China. TPOZ is undergoing expansion, and upon completion, it will improve the cost efficiency of its production operations while also introducing new high-added-value derivative products.
Meanwhile, Mitsui has planned to bring on board its accumulated knowledge and strengthen the oleochemicals business of TPOZ through its network of companies with sophisticated chemical manufacturing expertise, as well as by utilising its trading capabilities.
More oleochemicals project updates will be shared at 3rd Oleochemicals Outlook on 26-27 August, 2015 in Bali.
Contact Ms. Grace OH at grace@cmtsp.com.sg or call +65 6346 9147 for more details.
