16/8/06 (The Star)  -  PASIR GUDANG: The high-value oil palm-based industry has been identified as a key growth sector in the South Johor Economic Region development.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said in this respect, Pasir Gudang would be further developed to become a leading centre for palm biodiesel in Malaysia and the world.

He said the area had gained recognition as the hub for oil palm downstream activities in the region besides the well-established facilities for export of related products.

Abdullah added that Pasir Gudang had the largest palm oil refining and oleochemical manufacturing facilities in the country and these factors were critical in support of the expansion programme.

“The palm biodiesel will further boost activities at Pasir Gudang and the nearby industrial estate of Tanjung Langsat,” he said yesterday after the launch of the Carotino palm biodiesel plant, the first integrated palm biodiesel plant in the world.

The project is a collaboration between Carotino Sdn Bhd, a subsidiary of J.C. Chang group, and the Malaysia Palm Oil Board.

Also present were Johor Mentri Besar Datuk Abdul Ghani Othman, Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui and J.C. Chang group chairman Tan Sri J.C. Chang.

Abdullah said he hoped biofuel players would take note of the efforts taken by the Government to develop Pasir Gudang as the biodiesel hub by setting up their operations here.

He said Pasir Gudang would now become part and parcel of the dynamic Johor palm oil industry and Johor would experience rapid economic development in this sector.

He noted that the state now had 69 palm oil mills, 17 refineries, six oleochemical plants and four bulking installations.

Earlier, Abdullah launched the Tanjung Langsat Port and officiated at the groundbreaking ceremony of Kulim (M) Bhd’s Nexsol (M) Sdn Bhd plant.

According to a statement, Nexsol (M) and Nexsol (S) Pte Ltd were formed by Kulim and German partner Peter Cremer (S) Pte Ltd to produce and market palm-based biodiesel.

Kulim said Nexsol (M) would oversee the management and operations of the plant at Tanjung Langsat industrial area while Nexsol (S) would manage the facility at the petrochemical hub of Jurong Island in Singapore. 

“Kulim will hold a 51% stake in Nexsol (M) and 49% stake in Nexsol (S),” Kulim managing director Ahamad Mohamad said in the statement.

Kulim entered into a RM152mil joint-venture agreement with Peter Cremer earlier this year to set up the two biodiesel plants to produce biofuel and other downstream derivatives.

On the construction of the plants, Ahamad said it was on track, with the first batch of equipment expected to be delivered in October for immediate installation.

The Johor facility is estimated to cost RM75mil while the Singapore plant RM80mil.

Both plants were expected to start production as early as April 2007, the statement said.