KUALA LUMPUR: FGV Holdings Bhd has terminated its memorandum of understanding (MoU) signed with South Korean food manufacturer Samyang Foods Co Ltd which was signed in January 28, last year.
FGV in an exchange filing today, said the termination of the MoU would not have any financial impact on the company and its subsidiaries.
Both companies entered into an agreement to establish Samyang Halal’s production facilities in Malaysia, focusing on production of halal ramen and instant noodles for Malaysia and the global markets.
FGV's group chief executive officer Datuk Haris Fadzilah Hassan was quoted saying the collaboration is part of the group's strategic direction to expand its downstream business by diversifying its product offerings and penetrating new markets.
The partnership was also to give FGV access to Samyang Foods' supply chain, which includes cooking oil, vegetable fats and sugar for their existing ramen plant in Wonju, South Korea.
At the time of signing, FGV's wholly owned subsidiary Delima Oil Products Sdn Bhd, which leads the group's downstream business expansion, was positioned to leverage Samyang Foods' strong research and development and global distribution networks for its SAJI products.
Samyang Foods is a company incorporated in South Korea and listed on the Korean Stock Exchange.
The company is in the business of manufacturing and selling various food products such as ramen, snacks, dairy products, sauces and frozen dumplings.