CB Industrial to lead in palm oil services
Thursday May 27, 2004 - SECOND board-listed CB Industrial Products Bhd(CBIP) is well on its way to becoming a leading provider of palm oilmilling equipment and engineering services at the international level.
The company now has an outstanding order book of RM200mil that will ensurethe sustainability of its earnings for the next two years. Moreimportantly, large portion of these jobs are from overseas.
Chairman and managing director Lim Chai Beng said that for 2003, revenuecontribution from overseas jobs were about 60% of total revenue and thiswas expected to increase to 70% this year.
We are currently involved in a project for Indonesia's PTMultigambutIndustri estimated at RM100mil to construct an access road aswell as design, build and commission three palm oil mills, he told a pressconference after CBIP's AGM in Subang Jaya yesterday.
He said the company was now looking to secure a project potentially worthRM15mil to RM30mil in Papua New Guinea (PNG), having completed a RM32milproject in that country in the last quarter of 2003.Malaysia, Indonesia and PNG are currently the markets in which that we arestrong but we are also making inroads into Thailand and the Philippines aswell as other markets in Africa and Central America.
CBIP is a one-stop centre that is able to meet 90% of the needs ofengineering, equipment and services of palm oil milling industry locallyand abroad. As such, we have had a lot of interest from potentialcustomers all over the world, he added.
According to Lim, CBIP’s expertise lies in building modular palm oil millsthat are scalable with processing capacities ranging from five tonnes perhour to 45 tonnes per hour.
The modular palm oil mills, Modipalm, can be fully operational in as shortas four months and at lower capital investment costs compared toconventional mills.
Modipalm is easy to operate and the operating and maintenance costs arelower than those of conventional mills,†Lim said, adding that theflexible processing capacity meant that even small producers could benefitfrom Modipalm.