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Zurex Site at POIC Lahad Datu, Sabah, Malaysia
Zurex has a 14 acre site in Lahad Datu, Sabah, Malaysia which Zurex purchased from POIC Sabah Sdn. Bhd. (Company No.677686-U) ("POIC"). The size of the acquired land from POIC is sufficiently large to construct both a biodiesel manufacturing and palm oil refining plant, with room for future expansion.
POIC is developing a palm oil industrial cluster in Lahad Datu, Sabah, Malaysia as part of a Federal and Sabah State Government long-term initiative. This started in 2005 to ensure Malaysia retains the economic value derived from its palm oil crop.
Lahad Datu has been designated as the country's third port for palm oil futures and is currently the centre of the palm oil industry in Sabah, Malaysia.
Sabah produces 30 per cent of Malaysian palm oil and there are palm oil refineries close to the Zurex site, which offers several advantages:-
- adjacent to a designated oleo-chemicals handling deep water port
- surrounded by more than 100 palm oil mills
- home to companies that have a combined capacity of more than 5 million tonnes per annum of palm oil and palm kernel oil.
POIC's objective is to develop the Lahad Datu site and the surrounding infrastructure to ensure the establishment and long-term growth of Lahad Datu as the principal palm oil industrial cluster within the Association of South East Asian Nations (ASEAN) region.
Zurex believes that being located at Lahad Datu offers a strong competitive advantage, due to its proximity to an existing supply of palm oil and a deep water port for its business activities.
The Zurex site, within this POIC development, is of sufficient acreage on which to build a palm oil refining plant, and for the production of biodiesel.
A New Chapter - The Refinery
The award for the construction of the palm oil refining project was made to WS BIO Engineering Ltd in February 2009 and the refinery was commissioned in December 2010.
The Company hopes to have a steady revenue stream from its palm oil refining business. The refinery with the addition of a trans-esterification module or an esterification module and associated ancillary equipment, could be expanded to produce palm oil biodiesel should it become economically viable to do so.
Zurex
Zurex Corporation Sdn Bhd was incorporated in November 2005 with the objective of engaging in the manufacturing of biodiesel derived from palm oil. Zurex's strategy was to produce palm oil biodiesel from the abundant feedstock of crude and refined palm oil available in Malaysia and to sell palm oil biodiesel, regionally (Asia Pacific) and in the US and EU markets. In view current economic climate for biodiesel, a decision was made to build a palm oil refinery plant which could subsequently be adapted to produce biodiesel if market conditions made this financially viable.
