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