Biodiesel plant to fuel Kumpulan Fima revenue

Malaysia’s Kumpulan Fima Bhd is set to almost double its revenues in fiscal year starting March 2008, with the commissioning of its first RM45 million (US$13 million) palm oil-based biodiesel plant in Port Klang in October. Group Managing Director Ahmad Riza Basir said the 60,000-ton-a-year biodiesel plant in Northport is expected to contribute RM250 million (US$72.5 million) in revenues beginning next year. The plants biodiesel output would be exported to Europe. Production will be on a staggered basis due to the current high price of crude palm oil, which is hovering at RM2,400 (US$696) a ton. The plant will be producing other palm oil products such as palm olein, palm methyl esther and other oleochemicals. “Prospects for palm oil-based biodiesel are still good because crude oil prices (CPO) can still go up as high as US$77 a barrel, and at that price, the biodiesel price margin will come back,” said Fima Executive Director M. Aslam Haroon. Kumpulan Fima is one of three companies tasked in 2005 to build a 60,000-ton-a-year biodiesel plant under a government-backed plan. (September 12, 2007)