Cargill to Expand Vegetable Oil Processing Operations in Malaysia

We view Malaysia as an important hub to strengthen our downstream, value-added products business to enable us to better serve the growth of our valued customers in over 70 countries around the world.

28 May 2010 --- Cargill Palm Products Sdn Bhd announced that it has signed an Agreement to Lease with the Port Klang Authority to build a new vegetable oil refinery in Port Klang Free Zone. The signing ceremony was witnessed by Y.B. Tan Sri Bernard Giluk Dompok, the Minister of Plantation Industries and Commodities Malaysia.

The investment in a state-of-the art vegetable oil refinery at a cost of RM 162 million (US$ 50 million) will double Cargill's existing specialty fats production capabilities and increase overall processing capacity in Malaysia to 950,000 metric tonnes per year.

"The investment reinforces Cargill's commitment to Malaysia and we continue to explore additional, related investments in the near future," said Thomas Polhill, Managing Director of Cargill Palm Products Sdn.Bhd, and Country Representative. "We view Malaysia as an important hub to strengthen our downstream, value-added products business to enable us to better serve the growth of our valued customers in over 70 countries around the world." Over 90% of the downstream products from our new facility will be exported to foreign markets, which contribute directly to the foreign exchange earnings of Malaysia."

The construction of the plant is already underway and expected to be operational by mid-2011. The investment will create 100 jobs for Malaysians. The expansion will also benefit oil palm growers and other related Malaysian businesses.

"Cargill is committed to providing high quality and nutritious products to the food industry," said Bram Klaeijsen, Cargill Asia-Pacific Regional Director. "We are confident this refinery will bring significant benefits to meet the diverse needs of our existing customers and provide opportunities to explore and offer new customers solutions that can help drive the growth of their business."

Mr. Chia Kon Leong, general manager of Port Klang Free Zone Sdn Bhd welcomed Cargill's decision to invest in Port Klang Free Zone. "It augurs well for Port Klang Free Zone that a multinational company like Cargill has chosen to locate its new vegetable oil refinery here to take advantage of its strategic location, within a seamless port environment and competitive rates to investors." Chia added, "In addition, its location in the area gazetted as Halal Industry Zone will encourage other companies to locate their operations here to contribute to Malaysia's vision to become a global Halal hub."

In the last three years, Cargill has also invested in a new vegetable oil tank farm, a prawn hatchery project and a Food Ingredients Application Center in Malaysia.