Business

Tuesday August 28, 2007

Felda buys US firm RM241mil deal a boost for Felda’s global ambitions



KUALA LUMPUR: Federal Land Development Authority (Felda) is set to penetrate the North American oleochemicals and natural products business with the purchase of Massachusetts-based Twin Rivers Technologies (TRT).

“We are delighted to discover TRT as Felda aspires to be a global leader in this field,” Deputy Prime Minister Datuk Seri Najib Tun Razak told reporters after witnessing the signing of the agreement for Felda to purchase 100% stake in TRT for RM241.4mil.

The agreement was signed by Felda director-general Datuk Ahmad Tarmizi Alias and TRT chairman Irwin Keller.

Felda chairman Tan Sri Dr Yusof Noor later told reporters that acquiring TRT would enable Felda to get involved on a global basis in three main areas of oil palm development – oleochemicals, biodiesel and food/natural ingredients.

According to Najib, the acquisition would also improve the technical know-how among the local workforce as TRT makes a diverse range of products.

Deputy Prime Minister Datuk Seri Najib Tun Razak (centre) witnessing the exchanging of document between Felda director general Datuk Ahmad Tarmizi Alias (left) and Twin Rivers Technologies chairman Irwin Heller in Putrajaya on Monday.
Founded in 1994, TRT has a fatty acids plant that also produces glycerine in Quincy, Massachusetts, and a Cincinnati facility producing Omega 3 and Olestra, which are natural food ingredients, as well as biodiesel.

The plants are supported by a dedicated deep-water port in Quincy, access to the North American natural rail system and tank farms with a 70,000-tonne storage facility, all owned by TRT.

“We see immense potential from this deal as there is a growing preference for green products as well as a global drive to seek alternative energy,” Yusof said, adding that at the Cincinnati plant, the volume of biodiesel produced was expected to grow from 160,000 tonnes a year to over 300,000 tonnes by 2009 due to the US government's initiatives.

The signing ceremony coincided with a food tasting held by Felda D'Saji Sdn Bhd, a member of the Felda group, which plans to open its first restaurant and hotel in Mecca by November.

This was the food catering company's first foray overseas, Najib said, adding that nine million Saudi riyal (RM8.36mil) had been invested to date in the venture.

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