CBIP banks on Indon jobs

SUBANG JAYA: Palm oil mill expert CB Industrial Product Holding Bhd (CBIP) will focus on Indonesia as part of its efforts to boost order book, which currently stands at RM350mil. 

Managing director Lim Chai Beng said the group's patented Modipalm Continuous Sterilisa-tion mill had received good response from Indonesian plantation companies. 

“Given aggressive development in new oil palm estates in Indonesia, more players there are keen to set up cost-efficient palm oil mills,” he told reporters after two agreements involving its subsidiary, Sachiew Plantations Sdn Bhd, and Singapore-based KYOTOenergy Pte Ltd and PW Biotech Engineering Sdn Bhd were signed yesterday.  

Of the group's total order book, 60% was from Indonesia, the world's largest palm oil producer, Lim said.  

On CBIP's oil palm plantation venture, he said the group was eyeing to expand its landbank but the current price was too high. 

“We are lucky to have bought our plantation land in Sarawak earlier at RM10,000 per acre against the current price of RM15,000 to RM20,000 per acre,” he added. 

Sachiew currently has 3,720ha of oil palm plantation land and also manages about 5,936ha oil palm land for Empresa (M) Sdn Bhd in Miri, Sarawak. 

CBIP's other unit, Modipalm Engineering Sdn Bhd, is presently constructing a 30-tonne fresh fruit bunch per hour mill for Sachiew, expected to be commissioned in August. 

Lim said Sachiew had embarked on a value-add programme by converting its palm oil mill effluents (POME) and empty fruit bunches (EFB) into compost, which is used as organic fertiliser in its plantations. 

“This EFB-POME co-composting process is eligible for the sale of carbon credit under the Kyoto Protocol's clean development mechanism (CDM),” he added. 

Lim said the signing of carbon asset management agreement between Sachiew and KYOTO-energy was to allow the latter to act as services consultant to enable Sachiew to achieve certification of emission reduction and, later, sell carbon credits to industrialised nations. 

A separate agreement between Sachiew and PW Biotech was to appoint the latter as the turnkey provider of the Integrated EFB composting plant estimated at RM6.5mil. KYOTOenergy Asia Pacific director P. Krishnamurthy said: “We are collaborating with Sachiew to manage its carbon assets to be registered with the CDM.” 

He said the EFB-POME co-composting project would ensure a zero-waste solution to the Sachiew mill and also provide a sustainable solution in terms of efficient usage of waste for useful purposes, such as organic fertiliser for plantations.  

 CBIP :  [Stock Watch]  [NewsCBIP-OR :  [Stock Watch]

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