Carotech producing biodiesel despite restructuring exercise

Malaysian biodiesel producer Carotech is still producing biodiesel to supply Geneva-based oil trader Mercuria despite an ongoing restructuring exercise, its Chief Operating Officer Andrew Goh said. Goh was responding to queries on whether the contract with Mercuria was still in force. Mercuria would not comment. Malaysia-listed Carotech signed a biodiesel supply agreement with Mercuria last October in which Carotech was to supply the equivalent of about 5,000 metric tons per month over one year beginning January 2010 from Carotech’s 120,000 metric tons per year Perak biodiesel complex. Biodiesel production in Malaysia has been cut to minimal levels over the past year because of high feedstocks prices and slack demand. The clearest evidence of this was in the latest export figures from the Malaysian Palm Oil Board. (July 13, 2010)