8/26/2004 KUALA LUMPUR -- Pioneer oils and fats manufacturer, PremiumNutrients Bhd, expects to achieve about 10 percent growth in turnover frominvestment in European Union (EU) countries in the next three to fouryears, says its group managing director P.N. Agarwal.

He said that the EU countries have huge market potentials for the companyto expand its sales.

And to penetrate these markets, Premium Nutrients today signed anagreement to create a joint venture with Elstar Oils, a dynamic listededible oils and fats producer in Poland, to develop, manufacture andmarket a range of speciality fats and oils for the food industry in theEU.

Speaking to reporters after the signing ceremony, Agarwal said the areasof co-operation under the partnership include marketing both companies'existing products, manufacturing certain speciality fats for the animalfeed industry and producing trans-free or health fats for margarineproduction for the food industry.

Listed on the Warsaw Stock Exchange, Elstar Oils produces refined oils andfats for the food industry. Its primary focus is on the manufacturing ofrape-seed oil and other vegetable oils and fats to be sold to the food andnon-food sectors.

Premium's chairman Tan Sri Dr K.R. Somasundram said that the joint ventureis likely to be carried out in three phases with phase one being purelymarketing, followed by manufacturing in phase two and the setting up of anindependent manufacturing plant in the final phase.

"Our plans to go into manufacturing would be a gradual process as it meanssetting-up facilities in Poland. At this point, we have identified a portto set-up a terminal, which will facilitate imports and handling of lauric(palm kernel oil and coconut oil) and palmatic products, over the courseof time," he said.

Premium is one of the global pioneers in the manufacture and sale ofspeciality fats and oils across all industries, which include food,pharmaceuticals, animal feed, lubricants, paper and textile.