Tue, 19 Oct 2010

VIVAnews - Germany-based firm Ferrostaal AG will put in investment in the downstream sector of oil palm industry such as biodiesel and beta-carotene in Sei Mengkei, North Sumatra.

Ferrostaal will joint with PT Perkebunan Nusantara III and PT Perkebunan Nusantara IV to develop agriculture-based industrial cluster in Sei Mangkei.

"The investment reaches US$100 million to US$150 million," said Director General of Agroindustry at the Ministry of Industry, Benny Wachjudi, in Jakarta today, Oct 15.

According to Benny, Ferrostaal will work on oil palm processing industry such as bio-ethylene development. In addition, to go on with the clustering system, the ministry has evaluated infrastructure development such as railway system, roads and ports in Sei Mangkei.

In addition, several local investors like Sinar Mas and Wilmar are ready to build oil palm downstream industry. The government denies issue that Sinar Mas proceeds with downstream industry to oppose against the suit filed by an international NGO.