1/2/07 KUALA LUMPUR,  (Asia Pulse) - Kulim (Malaysia) Berhad (KLSE:2003) said its subsidiary, Natural Oleochemicals Sdn Bhd, is teaming up with Integrated Fortune Sdn Bhd for the production of palm wax.

The plant with an annual production capacity of 54,000 tonnes will be built at Bandar Seri Alam, Masai in the southern state of Johor, Kulim said in a statement to Bursa Malaysia on Jan 31.

The plant involving an investment of RM4.0 million (US$1.1 million) is expected to be completed and operational by March this year.

Kulim said the proposed production of palm wax will be undertaken via a newly incorporated company Natural Wax Sdn Bhd, which is currently a wholly owned subsidiary of Natural Oleochemicals.

Natural Oleochemicals will have a 60 per cent stake in the joint venture with the balance to be held by Integrated Fortune.

It said palm wax is increasingly used to substitute paraffin wax in the making of candles in view of the escalating cost of crude oil/paraffin wax.

Kulim said the proposal is in line with plans to further develop oleochemicals-related industries.