Malaysia's Palm Oleo to build 100 kt/yr fatty alcohol plant
01 February 2005 04:53 [Source: ICIS news]
SINGAPORE (CNI)--Malaysia’s Palm Oleo will build a 100 000 tonne/year fatty alcohol plant at Westport, near Port Klang in Malaysia, a company official told CNI on Tuesday.
Construction work was expected to start by June this year and the plant would come onstream by early 2007, he added. The official declined to reveal the plant's financial details.
“As it is near the port, it would make it would make the transport of the fatty alcohols easier. There are other oleochemicals producers starting up their plants in the coming months, which would increase competition. But demand is increasing too, and our plant will be viable," he said.
Palm Oleo, a subsidiary of Malaysian palm oil plantation owner Kuala Lumpur Kepong (KLK), decided to go ahead with this project after dropping its plan to buy Prime Chem's mothballed 30 000 tonne/year fatty alcohol and 30 000 tonne/year fatty acids plants in the Philippines.
Fatty alcohol is used to produce surfactants such as dishwashing liquid, detergents and toiletries. Demand for this product is expected to increase in the coming years especially from China.
Palm Oleo operates a 275 000 tonne/year fatty acid plant at Rawang near Kuala Lumpur. The plant produces a wide range of vegetable oil-based fatty acids and glycerine, plastic additive ethylene-bis-stearamide, coconut diethanolamide (a foam booster for shampoo) and vegetable-based soap.
The company is also constructing a 120 000 tonne/year fatty acids plant in Zhangjiangang, Shanghai, China, which is scheduled to come onstream in the fourth quarter of this year.
By: Siva Govindasamy
+65 6780 4359
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