Genting Plantations and Musim Mas Group form palm oil refinery venture
Kuala Lumpur – Genting Plantations Berhad and Musim Mas Group today entered into a collaboration to establish a Palm Oil refinery in Palm Oil Industrial Cluster (“POIC”), Lahad Datu, Sabah.
An agreement was signed earlier today for Musim Mas Group to take a 28% interest in Alfa Raya Development Sdn Bhd, the entity for the collaboration. Genting Plantations holds the remaining 72%.
“This Palm Oil refinery will be part of the larger Genting Integrated Biorefinery Complex that Genting Plantations is setting up for the production of 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,” said Chief Executive of Genting Plantations, Tan Sri Lim Kok Thay.
“The partnership marks the beginning of a closer working relationship between the Musim Mas Group and Genting Plantations Group. 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.” said Executive Chairman of Musim Mas Group, Mr Bachtiar Karim.
Entailing an investment of approximately RM300 million, the refinery will have a capacity of 600,000 metric tonnes per annum or 1,800 metric tonnes per day and is targeted for completion in the second half of 2016.
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.
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About Genting Plantations Berhad
Genting Plantations, a 54.6%-owned subsidiary of Genting Berhad, commenced operations in 1980. It has a landbank of about 66,000 hectares in Malaysia and some 180,000 hectares in Indonesia held through joint ventures. It owns seven oil mills in Malaysia and two in Indonesia, with a total milling capacity of 405 tonnes per hour.
Genting Plantations has also diversified into property development to unlock the value of its strategically-located landbank and has invested significantly in biotechnology in a major effort to apply genomics to increase crop productivity and sustainability.