KL will widen use of palm oil

KL will widen use of palm oil

KUALA LUMPUR (AFP): Malaysia's palm oil sector, with prices sizzling at a nine-year high, is in for even more exciting times if a pilot project to use it for making building materials turns out well, a cabinet minister said yesterday.

A Malaysian-based firm is working jointly with British-based Original Development plc in the development of polyurethanes from palm oil, Primary Industries Minister Lim Keng Yaik said.

"The end product can be used for the development of hardwood and a variety of uses for the building, furniture, marine and adhesives and sealants industries," Lim told AFP.

The unique process of manufacturing palm oil-based polyurethane represents a major technological breakthrough with profound implications for its world-wide uses, said a spokesman from Natural Polyol Technology Sdn. Bhd., the Malaysian company in the joint venture.

Malaysia is the world largest palm oil producer.

Lim said using a zero-waste policy on oil palm trees, everything from the frond to the oil could be developed into timber, reconstituted timber for furniture making as well as engine fuel.

Palm oil, besides being used for edible purposes, is also being developed for industrial purposes and as renewal energy source, Lim said.

Lim said the price of palm oil, with Malaysia's aggressive marketing strategy and the commodity's own versatile properties, should never again fall below the 80O ringgit (US$320) a ton.

"The development of new uses for the commodity should serve as a price safety net," Lim said.

Malaysian crude palm oil prices continued the third week of a bull run to close Monday at nine-year highs, with November month being offered at 1,760 ringgit ($704) a ton.

Lim recalled that palm oil prices had slumped to their historic lows in 1986 at 440 ringgit a ton.