Malaysian PM announces KLK’s MYR706 million project

Prime Minister Najib Razak announced that Kuala Lumpur Kepong Bhd(KLK), Malaysia’s third-largest listed palm oil producer, will develop the country’s downstream palm oil processing sector and will invest MYR706 million (US$225 million) for the project. The company will also build an integrated plant that will produce methyl ester sulphonate and fatty alcohol. Both are key ingredients in the production of biodiesel. In addition, KLK will build more facilities that will produce fatty ester and high-grade tocotrienols. Fatty ester is used for food production and tocotrienols are forms of vitamin E that are used in health supplements and personal care products. All four projects are expected to be completed within two to three years. The company’s investment is part of the Malaysian government’s Economic Transformation Program projects which are aimed at making the local economy more competitive. “The government’s support is certainly a major catalyst in promoting Malaysian players to take on a leadership role in driving world-class technology, particularly in palm-based products,” Lee Oi Hian, chief executive of KLK said. (September 8, 2011)