Cargill Expands Oil Processing in Malaysia

PORT KLANG, MalaysiaCargill Palm Products Sdn Bhd announced it has signed an Agreement to Lease with the Port Klang Authority to build a new vegetable oil refinery in Port Klang Free Zone. The signing ceremony was witnessed by Y.B. Tan Sri Bernard Giluk Dompok, the Minister of Plantation Industries and Commodities Malaysia.

The investment in a state-of-the art vegetable oil refinery at a cost of RM 162 million (US$ 50 million) will double Cargill's existing specialty fats production capabilities and increase overall processing capacity in Malaysia to 950,000 metric tonnes per year.

"The investment reinforces Cargill's commitment to Malaysia and we continue to explore additional, related investments in the near future," said Thomas Polhill, Managing Director of Cargill Palm Products Sdn.Bhd, and Country Representative. "We view Malaysia as an important hub to strengthen our downstream, value-added products business to enable us to better serve the growth of our valued customers in over 70 countries around the world." Over 90% of the downstream products from our new facility will be exported to foreign markets, which contribute directly to the foreign exchange earnings of Malaysia."

The construction of the plant is already underway and expected to be operational by mid-2011. The investment will create 100 jobs for Malaysians. The expansion will also benefit oil palm growers and other related Malaysian businesses.