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CAB Cakaran Corp Bhd is collaborating with Oiltek Global Pte Ltd to explore a joint venture focused on developing premium animal feed ingredients from palm oil-derived products. This strategic initiative was disclosed in a recent regulatory filing with Bursa Malaysia.
The partnership aims to merge CAB Cakaran's extensive expertise in animal nutrition, feedmill operations, and livestock production with Oiltek Global's advanced palm oil processing technologies. Both entities identify a substantial market gap for high-quality, cost-effective, and nutritionally enhanced feed ingredients derived from palm oil resources.
According to the company statement, the collaboration supports the sustainable utilization of palm-based resources while addressing current market needs. Oiltek Global, a wholly-owned subsidiary of Singapore-listed Oiltek International Ltd, will provide proprietary technology, processing know-how, and engineering expertise. Its contribution includes specialized knowledge in palm oil refining, downstream product development, and waste-to-value processes.
CAB Cakaran intends to leverage its existing infrastructure, including feedmill facilities, processing capacities, supply chain connections, and distribution networks to support the venture. The parties plan to establish a joint venture company in Malaysia to develop and commercialize these palm-derived products, subject to successful technical, commercial, and regulatory assessments.
While the shareholding structure has yet to be finalized, CAB Cakaran anticipates that the collaboration will unlock new market opportunities and diversify revenue streams, potentially enhancing its future profitability and promoting environmental sustainability within the sector.
Source: NST Online