8/7/2005 Business Times (Malaysia) - GOLDEN Hope Plantations Bhd willconstruct a RM16.7 million palm kernel crushing plant in Bintulu, Sarawak,to capitalise on the recent high price of the commodity.

A Golden Hope spokesman said the plant will be completed by next yearcatering to the export market, especially Europe via Bintulu Port.

The plant will be owned by Golden Hope's wholly-owned subsidiary AustralEdible Oils Sdn Bhd and it will have a capacity to produce 400 tonnes ofpalm kernel a day.

"The rationale of the plant is to maximise Austral Edible Oils' potentialas well as bring savings to the group due to the prevailing kernel pricediscount in Sarawak," the spokesman told Business Times.

The spokesman said the construction of the plant makes good business sensefor the company because palm kernel is now selling at the RM1,000 a tonnelevel compared to RM250 a tonne a few years ago due to the expansion ofthe oleochemicals industry.

"Crude palm oil (CPO), on the converse, is now selling at RM1,400 a tonneand the parity between palm kernel and CPO is narrowing," he said.

He added that the plant will also provide a steady stream of crude palmkernel oil supply to Golden Hope's Unimills, a vegetable oils refinery inthe Netherlands.

The spokesman said the plant also conforms to international standards suchas the Hazard Analysis and Critical Control Point certification and theGood Manufacturing Practices standard.