20/3/06 KUANTAN (The Star)  -   Two companies have expressed interest to set up biodiesel plants in the Kuantan Port Industrial Area (KPIA), with production expected to begin next year.

Kuantan Port Consortium Sdn Bhd (KPC) chief operation officer Wong Soon Fah said the companies' decision to locate their businesses in KPIA was partly due to their wish to be close to an export point to save on logistics costs.

“Some industries are good to be located in such an area as they need to export large volumes or in bulk. KPIA offers facilities such as direct pipeline and tank farms,'' Wong told StarBiz.

KPC, which operates the Kuantan Port and manages KPIA, looked forward to having such investments as this would be good for the local economy, encourage downstream industries and value-added activities, he said.

He added that KPC's revenue and Kuantan Port's throughput would increase as well.

Wong said the companies, one local and the other foreign, would each produce 100,000 tonnes annually.
“The plants will take up 4ha each and the biodiesel production will be the first in the East Coast,'' he added.

Wong said biodiesel had become increasingly popular in the past few years and that in Malaysia, it would be fully commercialised and ready for general use from Jan 1, 2006.

“KPIA has strong advantages in terms of availability of palm oil, downstream oleochemical activities as well as other raw materials to produce biodiesel,” he said.

Wong said Kuantan Port was prepared for potential biodiesel investors and had a proven record in promoting investments in petrochemical and palm oil.