Cambodian rice cracker manufacturer Ly Ly Food Industry has partnered with Japan-based Kameda Seika to establish a $16.1 million joint rice cracker venture in the Kingdom.
Ly Ly will provide $1.5 million and the company’s CEO, Keo Mom, will provide $6.4 million for the venture to give them both a 49 percent stake in the new company, while Kameda Seika will earn a 51 percent share, according to Eang Mong, the managing director of Ly Ly.
Mong said the companies had already signed a memorandum of understanding and planned to establish the new company, Ly Ly Kameda, in May, with plans to produce its first crackers by early next year. Ly Ly has already submitted documents to the Council for the Development of Cambodia and the Commerce Ministry, Mong said.
“Even though we already export our products to 10 countries, it is still limited,” he said. “We want to expand our production and increase exports further, and it will bring a better reputation to Khmer food.”
Mom could not be reached for comment yesterday.
Ly Ly currently exports between four and six 40-foot containers each month, generating between $60,000 and $90,000 in revenue, Mong said on Thursday. The joint venture is set to expand that capacity to 30 40-foot containers per month.
Long Kemvichet, spokesman for the Commerce Ministry, welcomed the joint venture on Thursday.
“The company will add value to our products and use more raw materials from our industry,” he said.
“This is the government policy to encourage local enterprises to produce finished products, rather than export raw material.”