As part of the agreement, the companies have agreed to partner in a collaborative effort that would allow Kuantan Flour Mills to expand its trading of starch business as well as its premix flour in China.
Another alternative laid forth in the memorandum would have Kuantan Flour Mills acquiring a majority equity interest in SGCT.
Headquartered in Shouguang City, Shandong province of China, SGCT is involved in the trading and retailing of corn, tapioca and food related products.
“Since its establishment, SGCT has established a stable import and export business with trading partners within China and Southeast Asian countries,” Kuantan Flour Mills said.