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Malaysia's Felda Global in product development pact with UK firm

KUALA LUMPUR, Oct 31 (Reuters) - Felda Global Ventures Holdings Bhd (FGV) has entered into an agreement with a spin-out company of the University of Cambridge to produce carbon-based nanomaterials with potential use in electronic devices.

Felda Global Ventures Downstream Sdn Bhd, a wholly-owned unit the world's third-largest palm plantation operator, and Cambridge Nanosystems Ltd will develop high grade carbon nanotubes and graphene using palm oil by-products.

Cambridge Nanosystems develops technology to make carbon nanotubes (CNTs) -- sheets of carbon rolled into cylinders. CNTs could potentially replace silicon transistors in electronic devices such as smartphones and laptops, making them lighter and more efficient.

The company also sees potential demand for nanomaterials from the automotive, aerospace and consumer product industries.

FGV will provide the raw material for the production of nanomaterials, while Cambridge Nanosystems will contribute proprietary technology, Felda Global said on Thursday.

FGV has proposed to acquire 70 percent of Cambridge Nanosystems for the purpose of the collaboration, although the company did not specify a value for the deal. The two signed a non-binding agreement lasting six months from Oct. 31. (Reporting by Al-Zaquan Amer Hamzah; Editing by Anand Basu)