New Kuantan Port refinery enables FGV to offer premium products - MIDA | Malaysian Investment Development Authority
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New Kuantan Port refinery enables FGV to offer premium products

New Kuantan Port refinery enables FGV to offer premium products

07 Feb 2024

FGV Holdings Bhd’s new Fract750 refinery plant at Kuantan Port has allowed the company to expand into premium product offerings such as high IV olein and hard stearin.

Group chief executive officer Datuk Nazrul Mansor said the new facility will strategically position FGV to serve emerging industries, with expected volume production of 150,000 tonnes per annum.

“The inauguration of the new plant represents yet another strategic move for FGV, enhancing cost-efficiency by leveraging high free fatty acid (FFA) feedstock, a by-product of crude palm oil milling and refining to produce palm methyl ester (PME),” he said.

FGV board member Datuk Mohamad Nizar Mohamad Najib said the new refinery not only allows it to explore new areas in specialty fat products but also contributes to the development of a specialised industry in Kuantan.

“This not only diversifies the local economy but also positions Kuantan as a hub for innovative and premium fat products, potentially attracting further investment and business opportunities,” he said.

The new plant will create job opportunities for local youth in Pahang, he added.

“The Pahang government welcomes new developments and investments that help to provide avenues for skilling and training in advanced sectors such as the palm oil and specialty fats industry,” he said.

The new refinery is the first plant in the east coast region to feature the Desmet iConFract system, which incorporates an innovative 30-bar filter press technology.

The technology helps in enhancing efficiency, streamlining premium downstream product production, and enabling precise separation of various fractions during the refining process.

FGV’s operations in Pahang stretch across 136,617 hectares of plantation estate, 28 mills, along with crushing, refining, fractionation and distillation plant, in addition to bulking and warehousing facilities, as well as a strategically positioned logistic depot.

In 2023, FGV bought and processed a total of 4.91 million tonnes of fresh fruit bunches (FFB) in Pahang worth RM3.75 billion.

Of this, 66 per cent of FFB came from Felda smallholders, while the remaining 34 per cent were purchased from independent smallholders.

Source: NST