Kuala lumpur: Genting Plantations Bhd's (GENP) indirect wholly-owned subsidiary, ACGT Vegetable AgVentures Sdn Bhd (AVA), has announced a proposed joint venture with Shouguang Vegetable Science and Technology Sdn Bhd (SVST).

According to BERNAMA News Agency, SVST is a wholly-owned subsidiary of Shouguang Vegetables (Guangzhou) Agriculture Technology Co Ltd, which is an indirect wholly-owned subsidiary of Shandong Shouguang Vegetable Industry Group Co Ltd (CSV). The proposed joint venture is focused on developing approximately 28.33 hectares of land in Kulai, Johor, as a center of excellence in tropical vegetable crops, aiming to support sustainable economic growth and food security.

The joint venture will involve the formation of two companies, JV Technology Company and JV Operating Company. AVA and SVST will hold 60 percent and 40 percent of the shares in these companies, respectively. The initial share capital for the joint venture companies will be RM1,000, with a planned paid-up capital of RM210 million for JV Technology Company and RM315 million for JV Operating Company.

GENP stated that the venture aims to leverage its genomics capabilities alongside CSV's technology and expertise to create high-yield, climate-resilient crop varieties. This initiative aligns with national food security goals and allows GENP to expand its business into vegetable seeds, enhancing business resilience and opening new revenue streams beyond its existing oil palm ventures.

The company noted that the joint venture is not expected to significantly impact the net assets per share and earnings per share of the GENP group for the financial year ending December 31, 2025.