Singapore's Wilmar to build 2 more biodiesel plants

04 September 2006 07:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Singapore-based agribusiness company, Wilmar International, said on Monday that it plans to build two more biodiesel plants in Riau, Indonesia, for an estimated combined cost of US$35 million.

The plants – which have a production capacity of 350,000 tonnes/year each - are due for completion in the second and third quarter of next year respectively and will provide biodiesel to the domestic market and for export to the US and Europe, Wilmar added in the statement.

Wilmar said it has also decided to increase the capacity of its first plant to 350,000 tonnes/year from 250,000 tonnes/year, which will bring the company’s total capacity to 1.05m tones/year. The first plant is expected to be commissioned in January 2007.

“By locating the biodiesel plants in our integrated manufacturing complex with our own port facility, Wilmar will be able to enjoy low cost production from economies of scale and integration. As an early mover in biodiesel, we believe we are well-placed to become a significant global player,” said company chairman and CEO, Kuok Khoon Hong.

Its initial plan to set up a plant in Singapore has been shelved due to competitiveness and there are no plans as yet to set up one in Singapore.

By: Gina Myung
+65 6780 4359

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