KUALA LUMPUR, Oct 29 — IOI Corp, Malaysia’s second-largest palm oil producer, will invest RM1 billion to boost its refineries to meet strong global demand for palm oil, the New Straits Times reported, citing its chairman.
IOI shareholders yesterday approved the company’s RM1.2 billion rights offer, the bulk of which will be used to expand and upgrade its refineries and specialty fats plants in Malaysia and the Netherlands.
“About RM1 billion will go to expanding our refineries in Pasir Gudang (in Johor) and Rotterdam,” said IOI’s Executive Chairman Lee Shin Cheng.
IOI, which owns palm oil estates in Malaysia and Indonesia, is hopeful that palm oil prices will rise to between RM2,200 and RM2,500 per tonne in the next few months, he said.
Palm oil prices on Malaysia’s derivatives market have been trading at about RM2,000 to RM2,200 in the past two months.
“Palm oil, being a very affordable vegetable oil, continues to see strong demand. That’s why we’re expanding capacity,” said Lee.
Malaysia is the world’s second-largest palm oil producer after Indonesia. — Reuters
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