KUALA LUMPUR, Aug 4 Asia Pulse - Petaling Garden Berhad said itsindirectly-owned subsidiary, Perusahaan Minyak Sawit Bintang Sdn Bhd(Bintang), has signed an agreement with Eonchem Technology Sdn Bhd(Eonchem) to construct a Palm Oil Solvent Extraction Plant for RM5 million(US$1.3 million).

Bintang is a wholly-owned subsidiary of Yong Peng Realty Sdn Bhd, which inturn is a wholly-owned subsidiary of PGB.

Bintang owns a commercial palm oil mill which utilises the conventionalpressing method to extract palm oil from fresh fruits bunches.

In a statement, PGB said Eonchem is the inventor/designer of a process andhas the technological know-how and expertise to construct a plant toextract residue palm oil from pressed oil palm fibres using the SolventExtraction Process.

Under the agreement signed on 1 Aug 2004, Eonchem will design, construct,install, test and commission a factory with the apparatus to process andextract palm oil from pressed fibre using the Solvent Extraction Process.

PGB said the purchase price of RM5 million was arrived on a willingbuyer-willing seller basis.

It will pay the amount upon completion and acceptance of the Palm OilSolvent Extraction Plant within a period of 18 months.

ASIA PULSE