Kulim expects RM8m new income stream for PFOE plant

KULIM (M) Bhd, through its plantation subsidiary, Mahamurni Plantations Sdn Bhd (MPSB), will build its first palm-fibre oil extraction (PFOE) plant in Sedenak palm oil mill in Johor.

MPSB signed a contract agreement with Eonmetall Technology Sdn Bhd, a subsidiary of Eonmetall Group Bhd, based in Penang yesterday, to build the plant, which is to be ready in the third quarter of next year.

As part of its waste to treasure initiative, the PFOE plant extracts oil from mesocarp fibre from the processed fresh fruit bunches to produce red palm oil that can be sold at 85% of the crude palm oil price. 

The company expects the plant to generate a new income stream for the group with an estimated RM8 million annually.

The agreement was signed by Kulim MD Mohd Faris Adli Shukery, on behalf of MPSB, and Eonmetall MD Yeoh Cheng Chye. 

Also present were Kulim COO Fairuz Ismail and Eonmetall Independent non-executive director Datuk Mohammad Radhi Abdul Razak.

“The project is part of our efforts to implement a circular economy through harnessing waste oil as feedstock for biofuels and utilising renewable energy for plant operations from sustainable sources.

“More importantly, it is a testament to our commitment towards the environmental, social and governance agenda,” Mohd Faris said in a statement on Monday.

Eonmetall, which owns the patented technology, has installed more than 20 plants in the palm oil industry since 2007.

“This is a significant direction for Kulim to invest in an integrated-valued-additional approach to produce high-value palm fibre oil.

“The plant is designed with continuous and fully automated operation with minimal people operating, in line with the adoption of IR4.0 in their oil palm-related processing,” said Yeoh. — TMR / pic source: Kulim FB