Bernama.com (Malaysian National News Agency), September 19, 2006 17:09 PM

Felda-P&G Bio-diesel Joint Venture To Start Output Early-2007

KUALA LUMPUR, Sept 19 (Bernama) -- Federal Land Development Authority Holdings Bhd and Procter & Gamble Co's (P&G) bio-diesel joint venture is expected to start production early next year.

Felda chairman Tan Sri Dr Mohd Yusof said the company has identified the site for the plant which would be at its existing refinery in Gebeng, Kuantan and was close to the port.

Speaking to reporters after launching Felda's new cooking oil 'Tiara' and Ramadhan buffet packages, he said Felda was also looking at its refineries in Lahad Datu, Sabah and Pasir Gudang, Johor for bio-diesel production.

Dr Mohd Yusof said the Gebeng plant's production capacity has not been determined yet as the amount would depend on the market.

He said Felda would not face any shortage of resources as it had put in extra efforts to boost yield and upgrade its management.

The joint-venture is currently doing bio-diesel research in Cincinnati, US, he said.

Felda has been producing methyl esther, an oleochemical product for use as diesel substitutes since 1998.

It also has a joint-venture company with P&G, FPG Oleochemicals Sdn Bhd.

P&G has been cooperating with Felda for more than 20 years to use palm oil to manufacture some of its products.

-- BERNAMA