Corrected: Wilmar to buy PPB Palm Oil for $2.7bn

14 December 2006 12:15  [Source: ICIS news]

Corrected: In the ICIS news story headlined "Wilmar to buy PPB Palm Oil for $2.7m" dated 14 December, 2006, please read in the headline ... "Wilmar to buy PPB Palm Oil for $2.7bn" ... instead of ... "Wilmar to buy PPB Palm Oil for $2.7m"... and please read in the first paragraph ... to buy its affiliate PPB Palm Oil for $2.7bn ... instead of ... to buy its affiliate PPB Palm Oil for $2.7m ... A corrected story follows.


SINGAPORE (ICIS news)--Wilmar International is to buy its affiliate PPB Palm Oil for $2.7bn, creating one of the largest palm oil producers and refiners in Asia, a senior company official said late on Thursday.


The combined palm oil refining capacity of the two companies will be 9.6m tonnes/year, Kuok Khoon Hong, Wilmar’s chairman and ceo, said at a press conference.


Wilmar will also become a significant biodiesel producer with a total capacity of 1.15m tonnes/year by end-2007, he added. The companies are due to start up three plants in Indonesia, with a capacity of 350,000 tonnes/year each, in the first, second and third quarters respectively.


Kuok was confident that the company would survive in the biodiesel business in the long term as energy prices continued to look favourable.


Indonesian palm oil prices were lower than Malaysia and its biodiesel plants were vertically integrated, he added.


The combined group would also be a dominant processor and merchandiser of agricultural products such as edible oil, oleochemicals and specialty fat in key markets like China, India and the Middle East, Kuok said.

By: Anu Agarwal
+65 6780 4359

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