A long-term Sino-Singapore project to develop a "food zone" in China's agricultural province of Jilin took a step forward on Monday as both sides inked an agreement to set up a joint company.
Singbridge Holdings signed a pact through a subsidiary on Monday with a state-owned company under the Jilin city government to set up the joint company, called Sino-Singapore Jilin Food Zone Development and Management Company.
The joint company will have a registered capital of 100 million yuan (S$20.6 million). Singbridge, through subsidiary Jilin Food Zone Pte Ltd, will have a 40 per cent stake. Its Chinese partner will have a 60 per cent share.
Ms Chong Phit Lian, chief executive of Singbridge Corporate, signed the deal on Monday morning with Mr Fang Liqun, vice-mayor of Jilin City, at the Shangri-La Hotel in Changchun, capital of Jilin province.
She said this is "a positive next step and part of continuing efforts to develop the Jilin Food Zone, cementing Singbridge's commitment to the project", Singbridge said in a media release.
Mr Fang, vice-mayor of Jilin City, noted that Jilin was one of China's most established agricultural regions and hoped that the project can eventually be scaled up and replicated elsewhere.
Jilin, a north-eastern province of about 27 million people, is known for producing grains like rice, maize and sorghum.