Louis Dreyfus to expand Indonesia palm oil refining business, executive says
13/06/2024 (Channel New Asia), Singapore - Agricultural commodity merchant Louis Dreyfus Company (LDC) is expanding its palm oil refining business in Indonesia, which will include construction of a new glycerine plant and higher production of biodiesel, a senior company official said.
LDC, which processes agricultural goods, has been expanding its operations in Asia to tap into the growing demand for food products.
"LDC is investing significantly to expand its refining complex in Lampung with the addition of a new glycerine refining plant, edible oil packing plant and warehouse," Rubens Marques, LDC's chief executive for South and Southeast Asia, told Reuters this week.
"These developments support our strategy to diversify revenue through value-added products by driving operational efficiency and synergies at the site."
The glycerine refining plant in Lampung will have an annual production capacity of 55,000 metric tons, primarily serving manufacturers of food, pharmaceutical and personal care products.
Plant construction is expected to start this month and operations are scheduled to begin within 18 months, Marques added.
"Our biodiesel capacity is also being augmented at the site, to support not only increased production of biodiesel but also as an additional source of crude glycerine, a byproduct to be used in the newly established glycerine refinery."
RICE & COFFEE
In efforts to enhance its local presence, LDC set up a team in 2023 to do rice origination in India, the world's top exporter of the grain, to buy rice directly from farmers and sell it in local as well as international markets.
"Our focus on people in India aims to leverage local expertise, and we will continually assess the need for similar teams in other countries to support our growth plans and ambitions," Marques said.
Last year, the company started an instant coffee plant in Vietnam in a joint venture with Instanta, which has an annual production capacity of 5,600 metric tons.
"Coffee products from this plant are primarily targeted for export, catering to established markets in the EU as well as emerging markets in Asia," he said.
Source: Reuters