CIIF-OMG plans biodiesel toll manufacture

The Coconut Industry Investment Fund-Oil Mills Group (CIIF-OMG) may toll manufacture coconut methyl ester (CME) with Atson Coco to position in a lucrative market without needing to invest heavily in a plant.Local coconut product manufacturer Atson Coco, owned by Chinese businessman Tiu Sing, has the capability to produce 50 metric tons (MT) per day of CME. Atson Coco is apparently willing to toll manufacture for CIIF-OMG, offering his facility to CIIF.”It’s small, but better than zero. This is a temporary move that will allow CIIF to be in the market and test the market without having to spend for capex (capital expenditure),” said Jesus Arranza, incoming president and chief executive officer of CIIF-OMG, in a press briefing.The agreement may involve CIIF’s delivery of its own manufactured crude coconut oil to Atson Coco’s manufacturing facility in San Pablo, Laguna.”Atson Coco owes UCPB (United Coconut Planters Bank). And when income will have been generated (from this pilot operations, we can invest in a plant,), he said.The CME production should further raise profitability of the company which has recovered in 2008 with a net income from losses in 2006-2007. (June 28, 2009)