8/2/2002 (Business Times) - Firmaplus Sdn Bhd, as licensee of the ThermoTech Technologies that value adds organic wastes and by-products into endproducts, plans to forge a long-term partnership with the oil palmindustry.The technology will enable Firmaplus to convert oil palm biomass intoanimal feed.Malaysia imports an average of between 4.5 million tonnes and 5 milliontonnes of soya- and corn-based feed material a year worth about RM3billion.Firmaplus hopes that its technology can be used to produce ingredientsthat can replace these imported items.This alternative animal feed, considered to be nutritionally superior tocorn, will be made from palm oil mill effluent (Pome) and empty fruitbunches (EFBs) — the portion remaining after the palm kernel is removedwhich resembles a large hedgehog.Though EFBs and the Pome are considered waste products to the palm oilindustry, for Firmaplus they are raw materials required for its endproduct.Following an investment of between US$6 million (US$1 = RM3.80) and US$7million on research and development of the process in relation to the palmoil industry, Firmaplus is now prepared to commence operation and make itsproduct commercially available.Firmaplus executive chairman Ismail Radi told Business Times that for astart, the company hopes to set up 10 plants by the end of next year, eachcosting some US$10 million.These plants, which will be located adjacent to oil palm mills, areexpected to churn out a total of US$180 million in turnover annually.With Firmaplus handling the palm oil industry’s waste, the industry inturn can look forward to lower costs and increased margins as it wouldhave rid itself of waste management processes and expense.At the same time, the livestock business could trim costs by a quarter asit would have an alternative food source. "There is a 25 per cent savingsto breeders," Ismail said.Unlike corn and soya commodities which experience price fluctuations andare likely to be seasonal, Firmaplus’ feed meal will be availablethroughout the year. "We do not see a fluctuation in price," chiefexecutive officer Charles Miller said.The EFB and Pome which are high in nutrients are ground into "soup",fermented and converted into palette-shaped animal feed.With over 380 palm oil mills in the country, Firmaplus sees a hugepotential for growth within the country and expects to bring in foreignexchange once it begins to export its product.In the more immediate term, the company hopes to cater to the needs of thelocal livestock breeders and meet domestic demand for its product.Firmaplus is the master licensee for Malaysia, Indonesia, Thailand and thePhilppines.

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