Our business

Main Page Content

The Site

POIC is developing the Lahad Datu site 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 of delivery for palm oil futures and is currently the centre of the palm oil industry in the Sabah province, Borneo. Sabah produces 30 per cent of Malaysian palm oil and there are palm oil refineries close to the site. Our site offers several advantages, being:

• adjacent to a designated oleo-chemicals handling deep water port
• surrounded by more than 100 palm oil mills
• home to companies that produce more than 5 million tonnes of palm and palm kernel oil per annum.

POIC's remit 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 ASEAN (Association of South East Asian Nations) region. We believe that the Lahad Datu offers a strong competitive advantage due to its proximity to an existing supply of palm oil and a deep water port that can handle supply and export. The site has sufficient space to increase the proposed plant capacity from 200,000 tonnes per year to at least 1 million tonnes per year.

Construction of the Plant

In January 2007, Zurex announced the first major milestone of the project - the signing of its contract with JJ-Lurgi Engineering Sdn. Bhd, the company that will supply the components for the construction of the 200,000 tonnes per annum palm oil biodiesel plant in Lahad Datu, Sabah, Malaysia.

JJ-Lurgi Engineering Sdn. Bhd is a 50.0 per cent. associate company of Lurgi AG, which has been supplying biodiesel plants for over 15 years and is the world's market leader. Lurgi has constructed over 20 plants in Europe, mainly Germany and more than 25 of its plants are in operation worldwide. Lurgi has also constructed a plant in Batam, Indonesia, which uses palm oil.

We expect that delivery of components will start within 12 months of signing the contract and that construction of the plant will be completed by October 2008.

For more information on Lurgi, please visit www.lurgi.com

Zurex

Zurex Corporation Sdn. Bhd. was incorporated in November 2005 to establish a large scale 200,000 tonnes per annum palm oil biodiesel plant at POIC (Palm Oil Industrial Cluster), Lahad Datu, Sabah, Malaysia. Zurex's strategy is to produce palm oil biodiesel from the abundant feedstock of refined and crude palm oil in Malaysia and to sell palm oil biodiesel to regional (Asia Pacific), US and EU markets. We anticipate continuous production of palm oil biodiesel by October 2008.

For more information on Zurex, please visit www.zurex.biz or see the Part 2 of the Admissions Document on the Company reports page.