Local exporter Signatures of Asia and Korea-based B&G is Life are investing in a palm sugar processing factory in Kampong Speu province.
For in depth analysis of Cambodian Business, visit Capital Cambodia
In addition to the plant, the collaboration includes a warehouse, a solar dryer, and a blockchain-based traceability system, Pich Chan, SOA general manager, told Khmer Times yesterday.
The new facilities will be located in Kampong Speu, an important source of palm sugar in the country, he said.
The plant will cost $500,000 and occupy 1,000 square metres, Mr Chan said, adding that an additional $500,000 will be invested to buy the land and build the warehouse. Construction is set to start next year.
Mr Chan noted that the companies have been working together for more than two years, with B&G is Life buying palm sugar to use it in ginseng-based products.
He said the factory will produce palm sugar powder, cakes, and syrup.
“We have been working with palm sugar for a couple of years now and we see many opportunities for our product in the international market,” Mr Chan said.
SOA buys the raw material for its products from farmers in Kampong Speu, Kampong Chhnang, and Kampong Thom, purchasing around 300 to 500 tonnes per year.
Sum Eoun, acting president of Kampong Speu Palm Sugar Promotion Association, told Khmer Times that SOA is the biggest buyer in the province. Once the factory is built, the association will be able to supply around 100 tonnes of raw palm sugar per season, he said.