MARKET DEVELOPMENT
Dominion Square to build palm oil factory in Lipis
Dominion Square to build palm oil factory in Lipis
13/6/07 (The Star) KUANTAN - Palm oil producer Dominion Square Sdn Bhd, a subsidiary of Pahang Agricultural Development Corporation (LKPP), located in Gambang, plans to build another factory in Lipis next year as part of its expansion to cope with the increasing demand for palm oil fruits.
LKPP general manager Datuk Md Adnan Sulaiman said its current factory in Gambang, near Kuantan, which has the capacity to process 40 metric tonnes of palm oil per hour, was not sufficient to meet the increasing demand from its customers, including farmers and firms.
Md Adnan said the factory in Lipis would also cater to its plantation in Lipis which was expected to be harvested over the next three years.
"Lipis is quite a distance, over 300km one way, and it would not be cost-effective if we were to bring the fruits here to be processed into palm oil,'' he said when met after receiving the ISO 9001:200 certification for quality management system from Sirim Qas International Sdn Bhd executive director Ab Razak Salim.
The ceremony was witnessed by Deputy Mentri Besar Datuk Mohd Tan Aminuddin Ishak, who is also the LKPP chairman.
Md Adnan said their firm would also enhance its capacity of producing palm oil to 60 metric tonnes per hour with the installation of a new machine soon.
The machine, he said, would cost some RM10mil and was expected to be fully operational by next year.
"Our present machinery can only produce a maximum of 40 metric tonnes per hour.
"Therefore, we have to upgrade our equipment so that we could meet the demand from our customers accordingly,'' he said.
LKPP general manager Datuk Md Adnan Sulaiman said its current factory in Gambang, near Kuantan, which has the capacity to process 40 metric tonnes of palm oil per hour, was not sufficient to meet the increasing demand from its customers, including farmers and firms.
Md Adnan said the factory in Lipis would also cater to its plantation in Lipis which was expected to be harvested over the next three years.
"Lipis is quite a distance, over 300km one way, and it would not be cost-effective if we were to bring the fruits here to be processed into palm oil,'' he said when met after receiving the ISO 9001:200 certification for quality management system from Sirim Qas International Sdn Bhd executive director Ab Razak Salim.
The ceremony was witnessed by Deputy Mentri Besar Datuk Mohd Tan Aminuddin Ishak, who is also the LKPP chairman.
Md Adnan said their firm would also enhance its capacity of producing palm oil to 60 metric tonnes per hour with the installation of a new machine soon.
The machine, he said, would cost some RM10mil and was expected to be fully operational by next year.
"Our present machinery can only produce a maximum of 40 metric tonnes per hour.
"Therefore, we have to upgrade our equipment so that we could meet the demand from our customers accordingly,'' he said.