FGV Holdings Bhd (FGV) has signed a memorandum of understanding (MoU) with Samyang Foods Co Ltd (Samyang Foods) to establish a halal ramen manufacturing facility in Malaysia for the local and global markets.

FGV’s group chief executive officer (CEO) Haris Fadzilah Hassan said the collaboration was part of the group’s strategic direction to expand the downstream business by diversifying product offerings and penetrating new markets.

“With this MoU, FGV hopes to explore the opportunity for both parties to establish a halal ramen and instant noodle manufacturing plant in Malaysia.

“The global halal food market is one of the fastest growing segments in the food industry and expected to reach more than US$740 billion (RM3 trillion) in value by 2025,” he said in a statement.  

The collaboration will also give FGV access to Samyang Foods’ supply chain, which includes cooking oil, vegetable fats and sugar for its existing ramen plant in Wonju, South Korea.  

Samyang Foods is a company incorporated in South Korea and listed on the Korean Stock Exchange with a current market capitalisation of KR₩459.5 billion (RM1.68 billion).

The company is in the business of manufacturing and selling various food products such as ramen, snacks, dairy products, sauces and frozen dumplings.

FGV’s wholly-owned subsidiary, Delima Oil Products Sdn Bhd, which is leading the group’s downstream business expansion can leverage on Samyang Foods strong research and development, and global distribution networks to improve quality and expand the reach of its SAJI (brand) products regionally and globally.

“Samyang Foods is an established global brand. Therefore, this is a fantastic business prospect for FGV to explore, and will ultimately benefit Malaysia by further positioning it as an integrated halal hub for global markets.

“We will be able to leverage on our local expertise in the halal industry, including Malaysian halal accreditation, which is recognised worldwide,” said Haris.

Meanwhile, Samyang Foods’ CEO Kim Jung-soo said : “Samyang is excited at the prospect of expanding our line of products to the vast and growing global halal market by collaborating with FGV as they have valuable experience producing high quality and halal food products.” – Bernama, January 28, 2019.