Green Leader Holdings Group Limited, a Hong Kong-based investment holding firm, announced construction of its first cassava-processing factory in Cambodia will begin in April.
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The announcement was made during a meeting this week with Minister of Commerce Pan Sorasak.
During the meeting, Michael Tse, Green Leader’s CEO, said the plant will be built in Kratie province. It will be able to produce 100,000 tonnes a year of cassava starch.
“The company will use contract farming schemes with farmers, providing them with the necessary seeds and resources,” he said.
The Hong Kong-based investment holding firm signed a memorandum of understanding in January with the Ministry of Agriculture, agreeing to invest in local cassava plantations and set up 20 plants to process cassava starch for export.
In the next three years, 10 plants will be raised with a capital investment of $150 to $200 million in Tboung Khum, Kratie, Stung Treng, and other provinces, according to Mr Tse.
Green Leader is targeting China as their main export market, but will also consider EU, South Korea, Japan and the US as possible buyers, Mr Tse said.
“Green Leader’s investment will report multiple benefits to the country. It will increase farmers’ incomes, reduce migration and contribute to the country’s economic growth,” Mr Sorasak said.