19/03/2010 (Daily Express), Lahad Datu - Behn Meyer, one of the biggest fertiliser and chemical trading companies in Malaysia, is investing RM25 million on its 7.6-acre fertiliser cluster here. The plant is an expansion of the company's business in Sabah where it has branch offices in Lahad Datu, Sandakan and Tawau.

Located within the Lahad Datu palm oil industrial cluster (POIC Lahad Datu), near here, the 150,000-ton a year fertiliser plant/warehouse will be completed this year. POIC Lahad Datu is being developed by state-owned POIC Sabah Sdn Bhd. Since 2006, 1,150 acres have been developed for palm oil downstream industries and supporting industries for the oil palm sector.

A new phase, covering more than 3,000 acres, is being opened up in phases. Twenty-four firms have, to date, purchased about 350 acres at POIC Lahad Datu. Behn Meyer is one of seven fertiliser companies who combine for an annual capacity of about one million tones. They are in various stages of planning and building.

POIC Sabah's Marketing Manager, Ms Rose Pun said the companies were attracted by the potentials for fertilisers as oil palm plantations continue to expand in Sabah east coast as well as the neighbouring Indonesian Kalimantan. POIC Sabah is spending RM208 million to build a jetty complex specifically for the fertiliser cluster. This complex will come with a conveyor belt system for optimum efficiency in the movement of fertilisers. It is due for completion in 2012.

"Because of our facilities and the market potentials, we hope to be able to attract more interest in the fertiliser cluster to make Lahad Datu a fertiliser hub of the region," said Ms Pun. On the overall progress of POIC Lahad Datu, she said a refinery, a fertiliser plant and two logistics depots are under construction.

A network of pipe-racks is also under construction to service the oil-based factories. She said companies, especially those that bought land for biodiesel plants, have begun to re-strategies their investment objectives in response to crude palm oil price trends.

"Our marketing focus is now on attracting investments in oil palm biomass either for renewable energy or for added value downstream products."