Singapore agribusiness giant Wilmar International has formed a joint venture with peer Noble Group to produce palm oil and its by-products in Indonesia.

The companies said Wilmar’s subsidiary Newbloom will hold a 53.74% equity stake in the venture while Noble unit Noble Plantations will own the rest. Financial details were not disclosed.

Through the joint venture, the firms will develop and operate palm projects to produce and sell crude palm oil and its by-products in the Papua region of Indonesia.

This is the second joint venture for Wilmar in the last six months. In October, the company formed a business with agribusiness giant Archer Daniels Midland to sell and market vegetable fats and oils in Europe.

The deal comes as Wilmar books a drop in full-year profit, hurt by lower palm oil prices. In the 12-month period earnings slid 21.6% to US$1.26bn. 

Total sales were up by 1.7% to $45.46 for the year as higher sales volume in palm & laurics, consumer products and sugar was “substantially” offset by lower average selling price, reflecting the general trend of palm oil and sugar prices.