Chinese-Malaysian group eyes $2b rice investment

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rice plantation1A Chinese-Malaysian agribusiness joint venture plans to launch a $2 billion rice and soya beans plantation and processing project by November 2013 in Indonesia, the group said on July 21.

The venture will consist of China’s Liaoning Wufeng Agricultural, a large plantation company, and Malaysian Amarak Group together with Indonesian company Tri Indah Mandiri.

The plan is to grow and process rice and soya beans in Subang, West Java, with Amarak contributing up to 20 per cent of the initial investment, which could eventually reach $5 billion and 1 million hectares of plantations. Around 80 per cent of the group’s production will cater to the Indonesian market, it said.

The company will also produce rice vinegar and rice bran oil. Tri Indah is currently readying a large 50,000 hectares trial plantation in West Java, working with local farmers.

Established in 2000, Wufeng has 24 plants and 2,000 employees in Liaoning province in China’s northeast. It has expanded to Thailand, Vietnam and Cambodia, where it grows rice to supply mainland China. The Indonesian project will be Wufeng’s first venture that will directly cater to an overseas market.

The company may seek to raise an additional $1 billion from an initial public offering in Shanghai or Hong Kong later in 2013.

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Reading Time: 1 minute

A Chinese-Malaysian agribusiness joint venture plans to launch a $2 billion rice and soya beans plantation and processing project by November 2013 in Indonesia, the group said on July 21.

Reading Time: 1 minute

rice plantation1A Chinese-Malaysian agribusiness joint venture plans to launch a $2 billion rice and soya beans plantation and processing project by November 2013 in Indonesia, the group said on July 21.

The venture will consist of China’s Liaoning Wufeng Agricultural, a large plantation company, and Malaysian Amarak Group together with Indonesian company Tri Indah Mandiri.

The plan is to grow and process rice and soya beans in Subang, West Java, with Amarak contributing up to 20 per cent of the initial investment, which could eventually reach $5 billion and 1 million hectares of plantations. Around 80 per cent of the group’s production will cater to the Indonesian market, it said.

The company will also produce rice vinegar and rice bran oil. Tri Indah is currently readying a large 50,000 hectares trial plantation in West Java, working with local farmers.

Established in 2000, Wufeng has 24 plants and 2,000 employees in Liaoning province in China’s northeast. It has expanded to Thailand, Vietnam and Cambodia, where it grows rice to supply mainland China. The Indonesian project will be Wufeng’s first venture that will directly cater to an overseas market.

The company may seek to raise an additional $1 billion from an initial public offering in Shanghai or Hong Kong later in 2013.

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