Apr 7 2015
PHI Group Partners With Malaysian Company to Set Up Oleochemical Plant
NEW YORK, NY and KUALA LUMPUR, MALAYSIA–(Marketwired – Apr 6, 2015) – PHI Group, Inc., (www.phiglobal.com) (OTC PINK: PHIL) (NASDAQ: PHIL), a company focused on energy and natural resources, announced today that the Company has signed an agreement with Fusion Crest Sdn Bhd, a Malaysian company, to jointly set up an oleochemical plant in Johor, Malaysia.
Fusion Crest owns a number of innovative patents with processing techniques that can convert non-edible oils or fatty acid distillates into value-added oleochemical products, such as C-16 palmitic acid, C8/C10, C-12 lauric acid, C-14 myristic acid, methyl ester, methyl sterate/olate, refined glycerin and residue oil. The plant will utilize equipment from Sulzer Chemtech, a Swiss company (http://www.sulzer.com/en/).
The oleochemical plant project requires an investment of approximately US$ 15 million and is capable of processing 120 tons of fatty acid distillates per day. Starting the second year of operation it is estimated that the plant will be able to generate about US$ 73,400,000 in revenues and US$ 13,200,000 in profits before taxes, respectively. Phi Group will be responsible for providing the total required investment capital and will own 70% of the joint venture company.
Unlike petrochemical, oleochemical is generally biodegradable, exhibits low toxicity and uses renewable sources as feedstock, thus making it the preferred raw materials for various industries.
Demands for oleochemical products from base fatty acids and base esters to fatty alcohols, detergent, metallic soap and other derivatives have seen constant growth over the years in the range of 6% to 10%, except for year 2009 where there was a downturn in demand.
From early 80’s to present, the shift of oleochemical manufacturing facilities from Europe to South East Asia and China has been mainly attributed to the following reasons: 1) Availability of raw materials, 2) Market demand for end products, 3) Lower cost of manufacturing, and 4) Growth in technological development.
Henry Fahman, Chairman and CEO of PHI Group, Inc., said, “We have studied this business opportunity in Johor, Malaysia for the last couple years and believe the timing is right to partner with Fusion Crest to set up and operate this oleochemical plant, which is expected to add very significant value for shareholders of both companies.”
Paul Liang, Fusion Crest Director of Operations, stated, “We are delighted to cooperate with PHI Group in this project and are confident that we can capitalize on our combined strengths to make Fusion Crest a success.”
About PHI Group, Inc.
Targeting both conventional energy and renewables, PHI Group, Inc. invests in energy-related assets and other natural resources, cooperates with international partners to develop independent power plant projects, and provides renewable energy technologies in conjunction with select industry partners. In addition, the company is engaged in trading activity involving coal, oil, precious metals and other industrial commodities. Website: