KUALA LUMPUR: CAB Cakaran Corp Bhd is teaming up with Oiltek Global Pte Ltd to explore a joint venture to develop premium animal feed ingredients from palm oil-derived products.
In a filing with Bursa Malaysia, CAB Cakaran said the proposed collaboration combines its expertise in animal nutrition, feedmill operations and livestock production with Oiltek Global's palm oil processing technologies.
"The parties believe there is a significant market opportunity for high-quality, cost-effective and nutritionally enhanced palm-derived feed ingredients addressing a gap in the current feed market while supporting sustainable utilisation of palm-based resources," the company said.
Oiltek Global, a wholly-owned subsidiary of Singapore-listed Oiltek International Ltd, will contribute its proprietary technology, processing know-how and engineering capabilities.
It will also provide expertise in palm oil refining, waste-to-value processes and downstream product development.
CAB Cakaran, meanwhile, intends to support the collaboration through its existing feedmill infrastructure, processing capacity, supply chain relationships and distribution network.
The parties plan to establish a joint venture company in Malaysia to develop and commercialise the palm-derived feed products, subject to the completion of technical, commercial and regulatory assessments, as well as the necessary approvals.
The proposed joint venture's shareholding structure has yet to be finalised.
CAB Cakaran said the collaboration could open new market opportunities, support more sustainable use of palm-based resources and diversify its income streams, potentially contributing positively to its future profitability.
© New Straits Times Press (M) Bhd