Carotech to invest $42.1m on biofuel expansion

05 December 2006 09:32  [Source: ICIS news]

SINGAPORE (ICIS news)--Carotech plans to invest Malaysian ringgit (M$) 150m ($42.1m) to expand its biodiesel output to meet growing demand, a senior company official said on Tuesday.

The Malaysia-based producer plans to build a third plant in Lumut, Perak state, to increase production by nearly four times to 125,000 tonnes/year, managing director David Ho told ICIS news.

This plant would start commercial production in October or November next year, he added.

Carotech, which produces 32,000 tonnes/day of biodiesel, has two other plants located in Chemor, Perak.

The company, which is 55% owned by Malaysian pharmaceutical firm Hovid, extracts about 90% biodiesel and 0.03% of plant nutrients from crude palm oil, Ho said.

These nutrients are mainly vitamins such as vitamin E, beta-carotene, and pro-vitamin A, which are supplied to pharmaceutical firms, food and beverage companies, and cosmetic firms.

Carotech, which started producing biodiesel in 1995, supplies biodiesel to companies around the world, Ho said.

"With our next plant, we’ll have almost four times the present capacity. If we sell everything, our revenue will [grow by] almost four times," he added.

The Malaysia-listed firm booked a net profit of M$12.3m for the year ended 30 June, an increase of 70.8% from 2005.

($1 = M$3.6)

By: Jeanne Lim
+65 6780 4359

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