Oiltek gets new contract to build palm oil and lauric refinery plants

Palm kernels at a plantation in IndonesiaPalm kernels at a plantation in Indonesia

Oiltek International has been awarded a new contract from a “reputable palm oil processor and exporter located in Indonesia” to design and build a crude palm kernel oil refinery plant and a lauric refinery plant, the company said in a filing to SGX Monday. 

The new contract brings Oiltek’s new contracts in the current financial year to MYR49.2 million, the filing said. That includes a new 1,000 metric tonnes a day physical refinery plant in Malaysia and a dry fractionation plant in Africa, Oiltek said. 

Oiltek’s order book has reached its historical high at around MYR198.1 million, which is set to be fulfilled over the next 18 to 24 months, the filing said.

“The new contract secured is part of our continued business efforts to secure more projects from existing and new customers with our expanding range of process engineering solutions,” Henry Yong Khai Weng, executive director and CEO of Oiltek, said in the statement. 

“We aim to maintain our growth momentum with the continued acquisition of projects in both the edible & non-edible oil refinery and renewable energy segments,” Yong said. 

The new contract is expected to contribute positively to earnings this year, Oiltek said.

The palm oil refinery plant will have a capacity of 1,500 metric tonnes a day, and the lauric refinery plant will have a capacity of 600 metric tonnes a day, the filing said.

The refinery for laurics, which include coconut oil and palm kernel oil, will have ice condensing vacuum systems, the filing said.

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