Golden Agri launches $480m oleochemical plant in Indonesia

It will try to achieve 160,000 annual capacity for products, a first for the group.

Golden Agri Resources recently launched a $480m (€300m) oleochemicals plant in Indonesia, through its joint venture company, Sinar Mas Cepsa.

According to OCBC Investment Research, the basic oleochemicals are produced from palm kernel to make fatty acids and alcohols.

Golden Agri is aiming to allot 160,000 of annual capacity for fatty alcohol, considered a first for the company.

It already has one oleochemical plant with an annual capacity of 240,000 tonnes, and sales of oleochemical products accounted for about 3% of overall revenue.

Golden Agri's Palm and Lauric revenue was up 21% YoY to $4.6b (US$3.4b) with EBITDA margin of 2.3%, in line with the past two years’ range of 2-3%.

"The group continues to strive towards sustainable growth as they expand its portfolio with higher value-added products, as well as via investments such as higher-yield planting materials," OCBC said.