Petaling Jaya: Kuala Lumpur Kepong Bhd (KLK) and Arami Commodities Sdn Bhd have formally signed a memorandum of understanding (MoU) for a joint venture, KLK Arami Edible Oil Sdn Bhd (KAEO), for the manufacturing, sales and marketing of palm oil and speciality oils and fats.
Ministry of Investment, Trade and Industry secretary-general Datuk Khairil Yafri Yaakob attended the signing ceremony at the Arab Malaysian Chamber of Commerce and Industry’s 14th annual general meeting.
Under the terms of the joint venture, KLK will own 65% of KAEO, with Arami holding the remaining 35%. The refinery and packaging plant assets are located in Teluk Panglima Galang, Selangor, and are scheduled to be fully operational in 2025.
KLK will oversee all technical operations, including raw material sourcing, while Arami will manage global sales and marketing activities with a focus on the Middle East market. The partnership combines KLK’s expertise with Arami’s global marketing strength, creating a foundation to provide high-quality palm oil and specialty fats to international markets.
“This partnership is in line with KLK’s continuing strategy to expand its midstream business by strengthening its refining capabilities, increasing production capacity and integrating sustainability standards. The joint venture also reflects KLK’s commitment to optimising the palm oil industry value chain, ensuring both competitiveness and sustainability on a global scale,” said Lee Jia Chan, Chief Operating Officer of KLK.
Alami managing director Ahmad Alami said the joint venture with KLK will strengthen both upstream and downstream production capabilities, expand the product portfolio and improve the quality of finished products through the use of high-quality and sustainable raw materials.
