Palm oil producer turns to biodiesel

Chumporn Palm Oil Industry Plc, Thailand's largest palm-oil manufacturer, is poised to penetrate the alternative-energy market by manufacturing palm-oil-based biodiesel, managing director Chusak Prachayangprecha said yesterday.
"We are now interested in alternative energy, because we have the raw materials to produce biodiesel. We also have an advantage over our rivals, because we have our own palm plantation covering more than 20,000 rai and 500,000 plants ready for production," said Chusak. "Our existing customers from both the private and the government sectors have expressed interest in ordering our palm-oil-based biodiesel to use as a substitute fuel." The company's main products are crude and pure palm oil. It has also sold refined palm oil under the brand names Leela, Rio, Waree, Parichart and Lobster. Chusak said Chumporn Palm Oil planned to raise its annual production from 350 tonnes to 650 tonnes this year, making it Thailand's largest palm-oil manufacturer. The company's second-quarter net profit more than doubled on year, jumping from Bt21.45 million in 2005 to Bt52.07 million. However, its first-half net profit dropped to Bt666,000 this year from Bt2.34 million last year, because of a net loss in the first three months of 2006. The improved second-quarter net profit was due to an increase of more than 81 per cent in sales volume following a production increase from a new project and a fall in the price of crude palm oil. The production of fresh fruit bunches in the company's plantation also contributed by rising 24 per cent. Chusak said the company was undergoing a rebranding process by changing its logo, internal and external document forms and staff uniforms. It is also restructuring its organisation, in order to reduce management layers and improve customer service. These processes will continue into next year.
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