AOMG’s 31st Annual General Meeting

Category: News Published: Thursday, 16 March 2017

This was held on 6th March 2017 at Renaissance Kuala Lumpur Hotel to coincide with the Palm and Lauric Oils Price Outlook Conference & Exhibition (POC).

In his address the chairman for 2016-18, Mr Tan Kean Hua, noted that whilst ASEAN is 50 years old AOMG marks its 31st year. 2016 was a busy year and its Technical Committee organised three workshops and a plant visit. AOMG continues to have 15 members from Indonesia, Malaysia and the Philippines.

Mr Suresh Gunaratnam, chairman of MOMG, presented the country report for Malaysia. He reported at 13% decline in PO/PK production due to El Nino. While Malaysia continued to be the lead producer and exporter of basic oleochemical in the world, in 2016 it dropped 3%. Investments in oleochemicals in 2016 amounted to RM580 million for 9 projects, out of which 4 were new investments and 5 were for expansions/diversifications. MOMG was very active engaging with various bodies such as MPOB, MPIC, MIDA, MITI, MPC and RSPO. MOMG also participated in the meetings of the TWG on Green Economic Zone of the Council for Palm oil Producing Countries (CPOPC).

Mr Leonardo Tapia from Chemrez presented the country report for the Philippines. CNO production decline 9% due to El Nino but is expected to recover this year. Local consumption rose 4% and is expected to increase to 12% this year due to the demand for Virgin Coconut Oil (VCO). Pan Century Surfactants has resumed operations whilst JNJ Oil (formerly Senbel) has updated its capacity. Chemrez Technologies has new capacities on speciality chemicals.

Mr Willy Sutanto from PT Ecogreen Oleochemicals presented the country report for Indonesia. PO/PK declined for the first time in 18 years due to El Nino and the impact was 6%. The industry levy provided some relief for biodiesel as the export tax for most of 2016 was practically zero. Due to the low price of crude oil, the levy was insufficient to support B20. The new capacity of Sinar Mas is expected to start in mid-2017. High lauric oil prices proved to be a challenge for oleochemical producers.

The Statistics Committee will conduct a training session for members in 2017. Two workshops have been planned by the AOMG Technical Committee. The Exco noted the new RSPO Rules for Oleochemicals and its Derivatives which became effective 1st December 2016 and the RSPO Supply Chain Certification Standard and Systems currently under revision.

The AOMG Exco will have an interim meeting around October this year.

Please click here to view AGM's photo.

 

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