MalaysIa’s IOI Corp Bhd to build facility in Prai Industrial Complex

IOI Corp. Bhd plans to build a RM130 million (US$40.9 million) facility in the Prai Industrial Complex. The two plants within the facility will produce glycerol derivatives, bio-lubricant and other specialty fatty esters. Most of its feedstock will be sourced from the existing 450,000 ton capacity of IOI Oleochemical Industries Bhd. IOI Corp. Group Executive Chairman Tan Sri Lee Shin Cheng said that the expansion will be internally funded although the company has received a RM43.6 million (US$13.7 million) grant which will subsidize 33% of the project cost. The new facility is expected to generate 13%-15% return of investment. (November 11, 2011)