Daesang Holdings expands into palm oil business in Indonesia

SEOUL, Nov. 23 (Yonhap) -- Daesang Holdings Co., the holding company of South
Korea's leading foodstuff firm, said Monday it is expanding into the palm oil
business by developing plantations and building processing plants in Indonesia.
Daesang and its unspecified Indonesian partner, through their subsidiary PT.
Miwon Agro Kencana Sakti, have bought a 11,130-hectare plantation near the harbor
area of Pontianak, West Kalimantan, from which they expect to produce 100,000
tons of palm oil annually starting 2013.
The two partners, each holding a 50 percent stake in the project, plan to invest
a total of over US$130 million in the next three years.
Palm oil is a popular and highly cost-effective edible oil that is also used
worldwide as a raw material for biodiesel and cosmetics. Biodiesel is a type of
alternative energy that can be used in unmodified diesel-engine vehicles.
ecuedy@yna.co.kr
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