November 20, 2008
Malaysia’s Sime makes inroads into China's palm oil refinery business
Malaysian conglomerate Sime Darby Bhd said it has teamed up with a Chinese firm to enter the palm oil refining and sales business in China, reported Reuters.
The move is Sime's latest effort to expand its foothold in the world's fastest growing economy and capitalise on its strong appetite for raw materials, the company said.
State-controlled Sime, the world's biggest grower of palm oil in terms of plantation land, already has investments in China's industrial equipment, auto and utilities sectors.
"Our strategic focus will be to continue to capitalise on China's long-term economic growth driven by strong domestic investment and consumption," Sime Chief Executive Ahmad Zubir Murshid said in a statement.
Sime is expected to take a majority stake in a joint venture firm, along with Dongguan Sinograin Oils & Grains Co Ltd, a Chinese government-linked company.
The company will focus on refining, storage and sales of palm oils and fats and other palm oil-related products in China.