KUALA LUMPUR: Genting Plantations Bhd
and Musim Mas Group are teaming up to set up a palm oil refinery in the Palm Oil Industrial Cluster (POIC) in Lahad Datu, Sabah.
Musim Mas Group will take a 28% interest in the joint venture company Alfa Raya Development Sdn Bhd and Genting Plantations the remaining 72%.
The refinery, which entails an investment of about RM300mil, will have the capacity of 600,000 tonnes per annum or 1,800 tonnes per day. It is targeted for completion in the second half of 2016.
Genting Plantations chief executive Tan Sri Lim Kok Thay said the refinery would be part of the larger Genting Integrated Biorefinery Complex it is setting up to produce high value-added downstream products.
“We look forward to collaborating with Musim Mas Group, a renowned leader in the refining business, and we are confident that this will be a mutually beneficial partnership that will enhance value for our respective stakeholders,” he said.
Musim Mas Group executive chairman Bachtiar Karim said the pooling of Musim Mas Group’s extensive experience in processing and marketing of refined palm oil products and Genting Plantations’s strong supply base “will create synergy for the stakeholders.”
Genting Integrated Biorefinery Complex aims to create high-performance palm oil derivatives using green and efficient processes at significantly lower production costs and capital investments than conventional petroleum-based processes.