11/04/2008 (The Edge Daily), Kuala Lumpur - Online One Corp Bhd subsidiary Ace Edible Oil Industries Sdn Bhd (Ace Oil) has been licensed to use Malaysian Palm Oil Board’s (MPOB) patented technology in oil and fat separation.
In a statement yesterday, Online One said Ace Oil had signed a technology transfer and licensing agreement with MPOB for the production of new improved palm-based olein with unique composition and cold stability.
Under the agreement, Ace Oil is licensed to use information pertaining to the technology and information of the processes together with the findings to build a commercial plant for its own usage.
It will build the production facility at Ace Oil’s factory premises in Klang with an initial capital outlay of about RM8 million. The facility would have a production capacity of 6,000 tonnes per annum.
Ace Oil is mainly involved in palm kernel crushing, refining of palm oil and palm kernel oil. Its Klang plant is capable of processing 100,000 tonnes of palm kernel per annum.
Online One said Ace Oil hoped to commercialise production with the new technology by December 2008 and to double capacity to 12,000 tonnes per annum.
Over the long term, it plans to expand the plant further to cater to the combined demand in markets such as Korea, Japan and China at 60,000 tonnes per annum.
At present, palm-based cooking oils are unable to establish themselves on the retail shelves of cool climatic regions due to the crystallisation of palm oil under cold conditions.
Online One said with the MPOB technology, it was now possible for palm oil-based trans-free fat health balanced oil to be sold to these cold countries.
Additionally, it said the product would be made from the new unique oil composition, which is specially formulated to suit and meet general market demands and nutritional recommendations of the World Health Organisation and the American Heart Association.
Online One added that in the US, the Food and Drug Administration had begun to require manufacturers to list the percentage of trans fat on food labels and recommended that people minimise consumption of the substance.