SINGAPORE, April 14 (Reuters) - Singapore’s Wilmar International Ltd announced on Monday its first major foray into Myanmar’s sugar market, forming a joint venture with a local producer.
Wilmar said it had signed a tie-up with Myanmar’s Great Wall Food Stuff Industry to produce and sell sugar and its by-products in the emerging Southeast Asian market, with Wilmar holding a 55 percent stake in the joint venture company.
Wilmar is the world’s top palm oil processor, but it has been steadily growing its sugar business through a series of deals over the past four years. In February it announced it was buying a major stake in India’s Shree Renuka Sugars for up to $145 million.
In the Myanmar deal, the new joint venture company will buy all of the existing sugar-related business, mills and plants of Great Wall. That includes two sugar mills with a total milling capacity of 4,000 metric tonnes of sugarcane per day and a total production capacity of 65,000 metric tonnes of sugar per year, a bio-ethanol plant and one organic compound fertilizer plant.
Financial terms of the deal were not announced and Wilmar says it does not expect the investment to have a material impact on its earnings for the current financial year.
The joint venture is still subject to regulatory approval. (Reporting by Rachel Armstrong; Editing by Stephen Coates)