Malaysia IJM Plantations in JV with CTI Biofuel to set up biodiesel plant

KUALA LUMPUR (AFX) - IJM Plantations Bhd said it has signed a 60:40 joint venture agreement with CTI Biofuels Malaysia (CTIBM) to build, own and operate a biodiesel plant in Sandakan, Sabah for the manufacture and sale of biodiesel.

In a statement, the plantation firm said its unit IJM Biofuel Sdn Bhd, the joint venture company which will undertake the operation of the biodiesel plant, will have an issued and paid-up capital of 2.5 mln rgt, comprising 2.5 mln ordinary shares of 1.0 rgt each.

The plant, it added, will be installed on a modular basis to achieve production capacity of up to 90,000 metric tons per annum of biodiesel, with an estimated project cost of 74 mln rgt.

'The first of the three modules, for production of 30,000 (MT) per annum, is expected to be operational in the first quarter of 2007,' it said.

CTIBM is a 95 pct subsidiary of CTI Biofuels, LLC, which is a wholly-owned subsidiary of Capital Technologies Incorporated of USA.

(1 usd = 3.69 rgt)