Published on: Tuesday, August 28, 2007 |
Putra Jaya: In what is seen as a major foray internationally, the Federal Land Development Authority (Felda) has acquired a 100 per cent equity interest in US-based Twin Rivers Technologies for RM241.4 million to use it as a platform to penetrate the lucrative North American vegetable oils market.
"The acquisition will enable Felda to be a global leader in the (vegetable oils) industry," Deputy Prime Minister Datuk Seri Najib Tun Razak said after witnessing the signing ceremony between Felda and Twin Rivers here Monday.
"The other advantage of acquiring this company is that we would able to expose our executives to some best international practices," he said.
The acquisition of Twin Rivers, the third largest manufacturer of fatty acids and largest producer of bio-diesel in North America, will allow Felda to diversify its involvement in terms of geography and product development of vegetable oils.
Twin Rivers Technologies is one of the largest and fastest growing oleochemical producers in North America.
It uses vegetable oils, including palm oil, for its products.
The company, established in 1994, has a fatty acid plant in Quincy, Massachusetts, which produces glycerin products. It also has a plant in Cincinnati to produce Olestra, Omega 3, Sefose and bio-diesel.
Felda Holdings Bhd's group managing director Datuk Mohd Bakke Salleh said the demand for palm oil in the United States has increased lately.
He said the US imported about 683,000 tonnes of palm oil last year compared with 300,000 tonnes in 2004.
"The demand for edible oil is increasing and we are optimistic about the prospects in North America," he added.
Asked about Malaysia assisting African countries in their poverty eradication through palm oil development, Najib said: "We have been asked to play our part under the Malaysian Technical Cooperation Programme. We are currently engaged in Sierra Leone to develop the palm oil industry there."
Najib also said that Felda, as part of the expansion plans for its catering business, would open its first restaurant this November in Mecca, serving Malaysian cuisine, with an initial investment of nine million riyal (RM8.37 million).
The catering business is being undertaken by its subsidiary, Felda D'Saji Sdn Bhd. - Bernama
