PETALING JAYA: Kim Loong Resources Bhd’s venture into the tocotrienols supplement business seems to be uncertain following the downscaling of its operations that it had invested in for close to 10 years.
Executive chairman Gooi Seong Lim said the company has not been able to extract the tocotrienols effectively from the crude palm oil (CPO) it produced.
“We are downscaling the business division. “Our new business model is to buy the tocotrienols-rich fraction from the big boys like Kuala Lumpur Kepong Bhd. We would extract the portion and the right criteria that we want and sell it in the form of capsules,” he said after the company’s AGM yesterday.
To date, the company has invested over RM20mil into the venture, and according to Gooi, this amount has already been written down over the past three to four years.
Managing director Gooi Seong Heen said the group have to make it a viable business, otherwise, it would leave the plantation outfit with no choice but to close down its health supplement venture.
Tocotrienols, which are part of the Vitamin E family, are extracted from palm oil and are believed to reduce bad cholesterol, kill cancer cells and slow down ageing.
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