20/11/2008 (The Star Online), Kuala Lumpur - Plantation heavyweight Sime Darby Bhd is making its first foray into the downstream palm oil business in China via the setting up of a joint venture (JV) company with Dongguan Sinograin Oils & Grains Company Ltd.

Sime Darby is expected to take up a majority stake in the JV company — Dongguan Sime Darby Sinograin Oil and Fats Co. Ltd — that will undertake refining, storage and sales of palm oils and fats and other palm oil-related products in China.

The strategic alliance will help capture and manage the demand of oils and fats in China, said Sime Darby president and group chief executive Datuk Seri Ahmad Zubir Murshid.

He said the Sime Darby group has benefited greatly from China’s strong economic growth and rising imports of raw materials.

“Our strategic focus will be to continue to capitalise on China’s long-term economic growth driven by strong domestic investment and consumption,” he said.

The proposed JV will embark on future expansion that includes the construction of new refineries with storage facilities, Zubir said.

Sime Darby has a strong presence in China, especially in the motoring, industrial and utilities sectors.