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KUALA LUMPUR: Bright Packaging Industry Bhd has entered into a joint venture agreement with a plantation firm in Sarawak.

The project involved the development of 1,921 hectares of land in Sarikei with a total plantable area for the purpose of oil palm cultivation estimated at 1,152 hectares.

"As at the date of the JVA, the planted area is approximately 579 hectares out of the 1,152.6 hectares of estimated total plantable area," Bright Packaging said in a filing today.

Bright Packaging said it has agreed to form a joint venture with Datai Plantations Sdn Bhd for the project.

"The Board believes that the Joint Venture will potentially contribute positively to the Company’s future earnings. In addition, the Joint Venture may reduce the Company’s reliance on its manufacturing business of aluminium foil which is increasingly competitive, and subject to volatility of its primary raw material as well as fluctuation in foreign exchange rate," it said.