MoU will remain valid for 1 year, and shall be extended as agreed in writing by related parties

By FARA AISYAH 

FGV Holdings Bhd and Samyang Foods Co Ltd has inked a pact to explore the setting up of a halal ramen production facility in Malaysia.

Both companies yesterday inked a memorandum of understanding (MoU) to study the proposed facility, which aims to serve halal ramen and instant noodle products for the Malaysian and global markets.

In a statement yesterday, FGV said the MoU will remain valid for one year, and shall be extended as agreed in writing by related parties.

CEO Datuk Haris Fadzilah Hassan said the collaboration is part of the integrated agri- business group’s strategic direction to expand its downstream business by diversifying its product offerings and penetrating into new markets.

FGV is also expected to benefit from this partnership by providing a total logistics supply-chain solution.

“With this MoU, FGV hopes to explore the opportunity for both parties to establish a halal ramen and instant noodle manufacturing plant in Malaysia.

“The global halal food market is one of the fastest growing segments in the food industry and is expected to reach more than US$740 billion (RM3.04 trillion) in value by 2025,” Haris said.

In addition to Samyang’s new halal manufacturing facility in Malaysia, the collaboration will also give FGV access to the South Korean foodmaker’s supply chain, which includes cooking oil, vegetable fats and sugar for its existing ramen plant in Wonju, South Korea.

FGV’s wholly owned subsidiary, Delima Oil Products Sdn Bhd (DOP) which is leading the group’s downstream business expansion, could leverage on Samyang’s strong research and development, as well as the Korean company’s global distribution networks, to improve quality and expand the reach of its Saji products regionally and globally, said Haris.

DOP is also expected to benefit from Samyang’s over 50 years of experience in the ramen and instant noodle industry to strengthen its own products and brand positioning.

“Samyang is excited at the prospect of expanding our line of products to the vast and growing global halal market by collaborating with FGV as they have valuable experience producing high quality and halal food products,” Samyang CEO Kim Jung Soo said.

Samyang is listed on the Korean Stock Exchange with a current market capitalisation of about RM1.68 billion.

The company is involved in manufacturing and marketing various food products such as ramen, snacks, dairy products, sauces and frozen dumplings.

Samyang said its ramen products are increasingly popular in Asia, Europe, Oceania, the Middle East, North America and South American markets and have sold over 400 million packs in 2017.