KUALA LUMPUR (Nov 13): DXN Holdings Bhd (KL:DXN) is exploring opportunities to source raw materials and expand its agribusiness operations in Venezuela through a collaboration with the country's La Guaira Special Economic Zone (SEZ).

The health and wellness products manufacturer and direct seller entered into a Memorandum of Understanding (MOU) with La Guaira SEZ to explore cooperation in sustainable agriculture, aquaculture, agro-processing and manufacturing, as well as halal ecosystem development in Venezuela, according to a bourse filing on Friday.

The proposed collaboration could diversify DXN's raw material sources and support its manufacturing operations in Latin America, which accounted for 61.2% of the group's gross revenue for the financial year ended Feb 28, 2026.

DXN currently operates a manufacturing plant in Mexico, is developing facilities in Peru and Bolivia, and has coffee plantations in Brazil and Bolivia.

Under the MOU, the parties may explore plantation and aquaculture development, biofertilisers, technology transfer, research and training.

La Guaira SEZ may also help identify suitable land for plantation development, while DXN could support Venezuelan authorities in developing halal certification infrastructure. 

DXN group chief executive officer Prajith Pavithran said the collaboration would build on the company's existing presence in Latin America.

“Working with La Guaira SEZ gives us a way to assess new sources of raw materials and explore how local processing could support our Latin American operations," he said in a separate statement.  

"We also see an opportunity to share our experience in Malaysia’s halal industry with the relevant Venezuelan authorities,” Prajith added.

The five-year MOU is non-binding and non-exclusive, with no commitment to any investment or minimum capital expenditure.

Any proposed project would be subject to feasibility assessments, regulatory and corporate approvals, and separate definitive agreements.

DXN said there is no assurance that the MOU will result in any project, noting Venezuela's evolving political and regulatory environment, including international sanctions and trade controls.

The La Guaira SEZ was established by the Venezuelan government in 2023 to attract domestic and foreign investment, with a focus on industrial development, technology, logistics and transportation, tourism and agro-food sectors.

Shares of DXN ended unchanged at 46 sen, valuing the company at RM2.34 billion.