Wednesday, 9 September 2009

Company eyes $20m oil factory

The Phnom Penh Post
Wednesday, 09 September 2009 15:01 Chun Sophal

CAMBODIAN conglomerate Mong Reththy Group plans to invest US$20 million to build a factory in Preah Sihanouk province to produce cooking oil from the group's palm plantations, President Mong Reththy said Tuesday.

Construction is due to begin next year, although the location has not yet been decided, he said, adding that the plant will have capacity to produce 100 tonnes of cooking oil per day. "We hope that the plant will help meet demand for cooking oil in both local and international markets," Mong Reththy said.

The group will target China as its first export market, he said.

A staff member at Chip Mong Export and Import, which imports cooking oil from Thailand and Vietnam, said there is strong domestic demand; however, the firm "must ensure their product is of a good quality and reasonable price to compete with [imported] products in the markets," said the staff member, asking not to be named.

The Mong Reththy Group has around 800 hectares planted in palm in Preah Sihanouk province producing 70 tonnes of half-completed oil per day. Mong Reththy said this would expand to 30,000 hectares.

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