PT Synergy Oil Nusantara, a Malaysian joint venture company, plans to expand its palm oil refinery capacity in Batam, Indonesia, to 645,000 tonnes a year from the current annual output of 500,000 tonnes.
The company is a 50:50 joint venture between a unit of the Federal Land Development Authority (Felda)- Felda Iffco Sdn Bhd and TH Plantations Bhd, a plantation unit under state-owned Lembaga Tabung Haji.
Felda Iffco is a 50:50 joint venture between Felda Global Ventures and United Arab Emirates-based global trading firm, Iffco Holfindsg.
Felda Iffco Regional Managing Director, Ras Manikkam said the company would look at investing at least US$15 million (RM48 million) up to 2013, t o increase its volume by 4% to 5% a year, to meet rising global demand for palm oil-based specialty products for the production of margarine, cooking oil, bakery and confectionary products, cosmetics and detergents, among others.
PT Synergy Oil’s US15.6 million refinery, which was established in 2009 to process the crude palm oil from TH Plantations’ 30,000 ha of oil palm oil estate in the nearby Riau islands, also refines oil from Sime Darby Bhd and other private palm oil companies.
Currently, the company exports some 95% of its output to the Middle East, India, Bangladesh and Europe while the balance 5% of the refined edible oil is sold in Indonesia and Malaysia.
Going forward, the company plans to build another refinery, either on its existing 11 ha site, where to-date only some 30% has been utilised for the existing refinery or on a new site.Adapted from NST Business Times 5 Oct 2011