06/01/2009 (Trading Markets) - Malaysia-based Sime Darby Berhad, the world's largest listed palm oil producer, will start building a 3-million-ton palm oil plant with a total investment of USD 500 million in Rizhao City, Shandong Province, North China, late January 2009, said an official from the Rizhao government.

The project will be engaged in refining, processing, storing and selling vegetable oil, especially palm oil, and related products. Its Phase I is to have a total investment of USD 29.98 million and will be capable of processing 1 million tons of palm oil per year.

Sime Darby started running a fully-owned Rizhao subsidiary for the project on December 18, 2008 and is making preparation for the construction.

Notably, the plant is expected to become the largest edible oil and fat producer in Rizhao City after fully construction.

China now consumes 5.6 million tons of palm oil yearly, accounting for 15% of the world's total. And it fully relies on imported palm oil. It imported about 4.705 million tons of palm oil in January-November 2008.