Louis Dreyfus to expand palm oil business in Indonesia

Louis Dreyfus Company (LDC) is expanding its palm oil refining business in Indonesia, which will include the construction of a new glycerin plant and increased biodiesel production.

LDC, which processes agricultural products, is expanding its operations in Asia to meet growing demand for food products.

“LDC is investing heavily to expand its oil processing complex in Lampung by adding a new glycerin plant, edible oil packaging plant and warehouse,” Rubens Marquez, LDC’s executive director for South and Southeast Asia, told Reuters this week.

“These developments support our strategy to diversify our revenues with value-added products by improving operational efficiency and synergies in the plant.”

The Lampung glycerin processing plant will have an annual production capacity of 55,000 metric tons and will primarily serve food, pharmaceutical and personal care manufacturers.

Construction of the plant is expected to start this month, with commissioning scheduled in 18 months, Marquez added.

“Our biodiesel capacity at the facility is also being expanded to support not only increased biodiesel production, but also to be an additional source of crude glycerin, a byproduct that will be used in the recently constructed glycerin refinery.”

Tags: Indonesia, palm oil, Louis Dreyfus