KUALA LUMPUR: FGV Holdings Bhd (FGV) recently launched its new Fract750 refinery plant at Kuantan Port, a strategic expansion into premium product offerings, such as high IV Olein (IV60-IV65) and hard stearin.
Pahang EXCO of Investment, Industry, Science, Technology & Innovation Datuk Mohamad Nizar Datuk Sri Mohamad Najib said the new refinery not only allows FGV to explore new areas in specialty fat products but also contributes to the development of a specialised industry in Kuantan.
“This not only diversifies the local economy but also positions Kuantan as a hub for innovative and premium fat products, potentially attracting further investment and business opportunities,” he said in a recent statement. He said the new facility is also a commitment to local economic growth. “Equipped with modern technology, the new plant will create job opportunities for local youth in Pahang. “The Pahang government welcomes new developments and investments that help to provide avenues for skilling and training in advanced sectors such as the palm oil and specialty fats industry,” he said. The new FRACT750 refinery is the first plant in the east coast region to feature the Desmet iConFract System, which incorporates a 30-bar filter press technology.
The technology helps in enhancing efficiency, streamlining premium downstream product production, and enabling precise separation of various fractions during the refining process. FGV group chief executive officer Datuk Nazrul Mansor said the introduction of the new facility will strategically position FGV to serve emerging industries, with anticipated volume production of 150,000 MT per annum. “The inauguration of the new plant represents yet another strategic move for FGV, enhancing cost-efficiency by leveraging high free fatty acid (FFA) feedstock, a by-product of crude palm oil milling and refining to produce palm methyl ester (PME),” he said. FGV’s operations in Pahang stretch across 136,617 hectares of plantation estate, 28 mills, along with crushing, refining, fractionation and distillation plant, in addition to bulking and warehousing facilities, as well as a strategically positioned logistic depot.
In 2023, FGV purchased and processed a total of 4.91 million metric tonnes (MT) of fresh fruit bunches (FFB) in Pahang worth RM3.75 billion, in which 66 per cent of FFB came from FELDA smallholders, while the remaining 34 per cent were purchased from independent smallholders. “As the world’s leading producer of crude palm oil (CPO), FGV continues to solidify its position.”With the establishment of this new plant, FGV will be able to produce premium palm olein and explore new markets, thus further strengthening FGV’s position as leader in the global palm oil market,” Nazrul said.
Operated by its subsidiary, FGV Refineries Sdn Bhd, this plant plays a vital role in FGV’s business ecosystem, completing the supply chain. FGV remains committed to sustainability and responsible practices, ensuring a balanced and thriving future for both the industry and the communities it serves.
