Wilmar runs down biodiesel plants in ‘lousy’ 2008

28 February 2008 08:40  [Source: ICIS news]

SINGAPORE (ICIS News)--Integrated biodiesel producer Wilmar International will operate its biodiesel plants in Indonesia and Malaysia at 20% capacity for the first three months of 2008 on the back of high crude palm oil (CPO) feedstock prices, its chairman and CEO Kuok Khoon Hong said on Thursday.

 

“Biodiesel is lousy right now,” said Kuok, adding the total sunk costs of the Indonesian and Malaysian facilities were offset by the high profits earned from biodiesel sales in 2007.

 

The company did not expect the sector to contribute significantly to its profits in 2008, he said.

 

The company, which operated the plants at full capacity in 2007, expected a quiet year ahead for the biodiesel industry.

 

“So technically, the plants are now free and we can increase or decrease its production capacity as and when it is profitable to produce biodiesel,” he said.

 

Going forward, Wilmar intended to expand its operations with a series of joint ventures with local companies in west Africa, China and Europe in the coming months.

  

Meanwhile, as reporter earlier on ICIS news the Singapore-listed firm reported a four-fold surge in fourth-quarter operating profits to $394.2m from $98.8m year on year.

 

For more on biodiesel visit Simon Robinson’s Big Biofuels Blog

By: Serene Cheong
+65 6780 4359

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