KL Kepong to relocate S'pore plant to Selangor

This is written by my colleague Presenna Nambiar.

KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) will relocate its tocotrienol (Vitamin E) extraction plant in Singapore to Selangor, as part of a RM706 million investment scheme to expand its oleochemical offerings.

It's wholly-owned Vitamin E extraction unit Davos Life Science Pte Ltd is currently operating froom Tuas South Street in Singapore. The plan is to relocate it to KLK's existing refinery in Pulau Indah, Selangor.

KLK yesterday announced four projects to beef up and diversify its oleochemical capacity. The first project is an integrated methyl ester sulphonate and fatty alcohol plant, key ingredients used in the making of toiletries, bio-degradable detergent and moisturiser. The second is a plant to produce specialty fatty ester while the third is to extract high grade tocotrienol isomers, used in the cosmetics and pharmaceutical industries. The fourth project is to develop a world-class research and development centre at its Shah Alam facility.

The RM706 million investments will be part-funded by a RM134 million grant accorded by the Malaysian Palm Oil Board. Overall, KLK will use internally generated funds to finance these expansion and innovations in the next two years.

"Typically we expect about 15 per cent returns on investment in a plant before we embark on a project like this," KLK chief executive officer Tan Sri Lee Oi Hian said at a press conference after the 7th Economic Transformation Programme update by Prime Minister Datuk Seri Najib Abdul Razak yesterday.

KLK is contributing to the development of the downstream sector of the palm oil industry under the Palm Oil and Rubber NKEA (National Key Economic Area) - Developing Oleo Derivatives. They are part of the eight new initiatives under the Economic Transformation Programme announced by the Prime Minister yesterday. 

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