KLK partners with Alami Commodities to market palm oil and speciality fats in Middle East
09/10/2024 (Oils & Fats International) - Malaysian oil palm company Kuala Lumpur Kepong (KLK) has formed a joint venture with vegetable oil product and consumer goods firm Alami Commodities to manufacture, market and sell palm oil and speciality fats in the Middle East.
Trading as KLK Alami Edible Oils (KAEO), the joint venture company would operate a refinery and packaging plant in Teluk Panglima Garang, Selangor, scheduled to be commissioned this year, the companies said in a joint statement on 25 September.
Under the terms of the joint venture, KLK said it would own 65% of KAEO with Alami holding the remaining share.
As part of the memorandum of understanding (MoU), KLK will oversee all technical operations, including the sourcing of raw materials, while Alami will manage global sales and marketing efforts “with a focus on the Middle East market”.
“This partnership brings together KLK’s expertise and Alami’s global marketing strengths, providing a foundation for delivering quality palm oil and speciality fats to international markets,” the statement added.
“This collaboration is aligned with KLK’s ongoing strategy to expand our midstream operations by enhancing refining capabilities, increasing capacity and integrating sustainability standards,” KLK chief operating officer Lee Jia Zhang said.
“The joint venture also reflects KLK’s commitment to optimising the value chain in the oil palm industry.”
Alami, which has over 28 years of experience in the vegetable oil sector, expected the joint venture to boost its upstream and downstream production, expand its product portfolio and improve the quality of its finished products, the company’s managing director Ahmed Alami said.
Established as a plantation company more than 100 years ago, KLK’s focus today is on oil palm development.
As of September 2022, KLK had about 300,000 ha of planted area across Malaysia (Peninsular and Sabah), Indonesia (Belitung Island, Sumatra, as well as Central and East Kalimantan) and Liberia.
Since the 1990s, KLK has diversified into resource-based manufacturing (refinery and oleochemical), and vertically integrated its upstream, midstream and downstream businesses. The Group has since expanded its manufacturing operations and now has international oleochemical and refinery operations in Malaysia, Indonesia, China, Switzerland, Germany, the Netherlands, Belgium and Italy.
Since 1990 the company has also been involved in property development.
Part of the Alami Group of companies, Alami Commodities exports vegetable oil derivatives and downstream products to more than 60 global destinations.