20/9//2005 (Chemical Business News) - The director-general (DG) of theMalaysian Palm Oil Board (MPOB) has reported that MPOB will be invitingtenders in Oct 2005 to build a new bio-diesel plant. The new plant, withan initial production capacity of about 60,000 tonnes/y, is to be situatedin Pasir Gudang or Port Klang. The plant requiring an investment ofRinggit 40 M is likely to commence operations by 2006. It is to be jointlymanaged by MPOB and another partner. The major output of the new plantwill be exported to Europe. MPOB plans to use crude palm oil as rawmaterial for the production of bio-diesel and price the bio-diesel atabout $40-50/tonne. About 10 companies so far have evinced interest inoperating the plant.