Felda IFFCO sell Cincinnati biodiesel plant

Cincinnati, USA: FELDA IFFCO Sdn Bhd has agreed to sell its biodiesel plant in Cincinnati, Ohio, to United States-based refiner Marathon Petroleum Corp (MPC). 

MPC said it signed an agreement, earlier this week, to purchase the plant, which currently produces several products, including biodiesel and glycerin, from Felda IFFCO.

"The capacity of the plant is 4,100 barrels per day. The transaction is expected to close in April 2014," it said in a statement. However, details of the transaction were not disclosed.

MPC senior vice-president of supply, distribution and planning, Mike Palmer, said the company has been a producer and large blender of ethanol for many years, and this acquisition will broaden its renewable fuels portfolio with a quality asset.

"We continue to grow our biodiesel blending volumes and this acquisition will be a natural value chain fit. Also, the facility is located in the heart of MPC's Midwest assets, providing efficiencies in our product supply logistics," he said.

MPC is US' fourth-largest refiner, with a crude oil refining capacity of about 1.7 million barrels per day in its seven-refinery system.

Meanwhile, Felda IFFCO is a joint venture between Felda Global Ventures Holdings, Malaysia's largest diversified organisation, and IFFCO Holdings, United Arab Emirate's (UAE) leading manufacturer and marketer of fast-moving consumer goods and industrial food products in the Middle East and Africa.

According to the Felda IFFCO website, the Malaysian-UAE partnership integrates the entire value chain from oil palm cultivation, milling, refining, processing, branding and distribution of a complete range of palm and palm kernel based oils and fats to global markets.

Apart from Malaysia, Felda IFFCO has refining and processing activities in China, Indonesia, Turkey and the United States.