Sojitz to tie-up with QL Resources

Japan’s Sojitz Corp., as a first step in its plan to begin manufacturing and marketing biofuels on a global scale, has teamed with Malaysias QL Resources Bhd to produce 100,000 tons a year of biodiesel from palm oil. Sojitz Corp. will shoulder around 15% of the project costs, which will total an estimated ¥2.4 billion (US$19.4 million) to ¥3.6 billion (US$29.1 million). Sojitz aims to have a global capacity of 1.7 million tons a year in three years. Sojitz is also considering a related business similar business with the Malaysian firm, involving palm cultivation. The palm plantation business would involve an investment of about ¥48 billion (US$38.8 million) and would be capable of producing 175,000 tons of biodiesel annually. (June 12, 2007)