KUALA LUMPUR, Aug 14 (Bernama) -- A truly Asean venture in producing fibre from palm oil waste, combining the resources of Malaysia, Singapore and Thailand is fast gaining prominence as more firms not only signal their intent to join the bandwagon, but Australia has even opened its market for the finished products.

Known as the Asean fibre technology conglomerate, Malaysia is contributing its home-grown palm fibre technology for the venture, Singapore manufactured the equipment and Thailand provided the site for the plant at Krabi and Bangkok.

Dr Mohd Shahir Liew, the executive director of Sabutek (M) Sdn Bhd, the Malaysian firm involved in the project, said the Asean conglomerate set up last year received overwhelming response from those within and out of Asean.

Sabutek, which specialises in palm oil waste derivatives, is the company which took the lead in this establishment of the palm fibre manufacturing venture, Dr Shahir, an engineer by profession told Bernama here, Monday.

"We are now talking with two Indonesian parties keen to join the venture," he said ahead of the 38th Asean Economic Ministers Meeting and consultations with dialogue partners starting next week.

Some Indonesian companies have reportedly expressed interest to participate in the project by providing raw materials for building and bedding.

"A company from Vietnam is coming in soon as well," he said.

Dr Mohd Shahir said it was heartwarming that Australia -- Asean's dialogue partner, has given "a substantial market" for the finished products.

"Australia is also now our partner," he said, adding that Australia offered a very big market but declined to reveal the value of the exports.

Dr Mohd Shahir said the plant has already increased its capacity of processing palm oil waste by four times in less than a year from 300 tonnes last year.

From the waste, useful products produced by the conglomerate include long fibres, pellets and pulverised fibres.

Providing a background to its establishment, the Asean venture came about after being recommended by the Asean Business Advisory Council (ABAC) to Asean leaders during the 11th Asean Summit held in December last year.

ABAC had proposed that entrepreneurs from member countries cooperate in certain specific businesses or promote specific industry technologies.

The palm fibre conglomerate, which had agreed to share technology knowledge, product applications and working environment, would also work on overcoming issues such as levies imposed by the countries as well as making itself available to concessions, tax incentives and funds.

ABAC said other projects in the pipeline which could be undertaken by Asean conglomerates include electrical and electronics projects, e-commerce, tourism and shrimp farming.

-- BERNAMA