SIBU, Sept 1 (Bernama) -- One of Sarawak's best known multi-national timber, plantations, media and information technology conglomerates, Rimbunan Hijau is set to strengthen its oil palm division to become a major player in the state's oil palm industry.

Executive Director of Rimbunan Hijau's Selangau Palm Oil Mill, David Tiong Chiong Ong, said the group currently had 200,000 hectares of land bank for oil palm cultivation in the state.

"This will help us to secure the supply of raw materials for palm oil based downstream processing industries, in particular bio-diesel industry," he said at the launching of the mill near Selangau, about 140 kilometers from here, Friday.

Second Planning and Resource Management Minister Datuk Awang Tengah Ali Hassan commissioned the multi-million mill in conjunction with the group's 30th anniversary celebration.

The mill is equipped with the latest oil processing machinery from Germany and Sweden to deliver maximum level of productivity and quality crude palm oil and palm kernel.

It has the capacity to process 60 metric tonnes of Fresh Fruit Bunches (FFB) throughput per hour and expandable to 129 tonnes and said to be the largest in the state now.

Elaborating on the group's expansion plan, he said it would set up an edible oil refinery, kernel crushing plant, bio-diesel plant complex and other value added palm oil based products in the next few years.

-- BERNAMA