KUALA LUMPUR (Aug 19): Bright Packaging Industry Bhd has entered into a joint venture agreement (JVA) with Datai Plantations Sdn Bhd (DPSB) for the purpose of developing oil palm plantations and related facilities and provision of services ancillary on a parcel of land in Sarikei, Sarawak.

In its filing with Bursa Malaysia, Bright Packaging said it would invest RM5 million for the venture as part of its move to diversify from its current core business of aluminium foil manufacturing, which is increasingly competitive, and subject to volatility of its primary raw material as well as fluctuation in foreign exchange rate.

The land, measuring about 1,921 hectares, has a total plantable area for oil palm cultivation estimated at 1,152.6 hectares. As at the date of the JVA, the planted area was approximately 579 hectares.

DPSB is principally engaged in investment holding and palm oil cultivation. Through its 60%-owned company, namely Datai Pelita Bintangor Sdn Bhd (DPBSB), it has been granted the right to develop the project. The remaining 40% stake in DPBSB is held by LCDA Holdings Sdn Bhd, which is the wholly-owned subsidiary of Land Custody and Development Authority (LCDA).

LCDA was established under the Land Custody and Development Ordinance 1981 as a Sarawak State-owned statutory body with the aim to facilitate the State's socio-economic transformation through land development.

Bright Packaging shares price went up 0.5 sen to 26 sen, for a market capitalisation of RM53 million.