The plant will process non-edible oils into oleochemical that is used in base fatty acids, base esters, fatty alcohols, detergent, metallic soap and other derivatives.
PHI Group chairman and CEO Henry Fahman said: "We have studied this business opportunity in Johor, Malaysia for the last couple years and believe the timing is right to partner with Fusion Crest to set up and operate this oleochemical plant, which is expected to add very significant value for shareholders of both companies."
PHI will hold a 70% interest in the facility and will provide the entire investment of $15m required for the project.
Fusion Crest will bring in its patented processing techniques that can convert non-edible oils or fatty acid distillates into value-added oleochemical products, such as C-16 palmitic acid, C8/C10, C-12 lauric acid, C-14 myristic acid, methyl ester, methyl sterate/olate, refined glycerin and residue oil.
Swiss company Sulzer Chemtec will supply equipment to the plant that will have a processing capacity of 120t of fatty acid distillates a day.
PHI expects the facility to generate about $73m in revenues and $13m in profits from the second year of its operation.
According to the company, oleochemical is biodegradable, exhibits low toxicity and uses renewable sources as feedstock.
Image: Oil palm fruit is one of the sources of oleochemical. Photo: courtesy of Cayambe.
