7 Mar 2019 (The Star Online) KOTA KINABALU: Sabah is set to receive a RM13bil investment, its single biggest so far, at the Palm Oil Industry Cluster (POIC) in Lahad Datu.
The plan is to set up a petrochemical plant at POIC Lahad Datu to process naptha, a petroleum by-product, into a variety of petrochemical products for the world market.
This is the essence of the term sheet signed here yesterday between state-owned POIC Sabah Sdn Bhd, the developer of POIC Lahad Datu, and Burel Industries Sdn Bhd.
POIC Sabah was represented by its chief executive officer Datuk Dr Pang Teck Wai and Burel Industries by executive chairman Per N. Brandtzag, with the ceremony witnessed by Chief Minister Datuk Seri Mohd Shafie Apdal.
Also present were Deputy Chief Minister and State Trade and Industries Minister Datuk Wilfred Madius Tangau as well as Sabah State Secretary Datuk Seri Hashim Paijan.
Mohd Shafie said this is indeed good news for Sabah as it is potentially a game-changing investment that would put the state on the world map of petrochemical products.
Sabah needed foreign investment to diversify and strengthen its economy as well as to create highly skilled jobs along with new business opportunities for fellow Sabahans, he added.
Mohd Shafie said Burel Industries made the right choice in investing in Sabah, pointing out that the state has abundant resources while the state government would do its best to ensure the investment is realised.
Burel Industries is a partnership between Swiss, Saudi Arabian, Chinese and Malaysian investors, and the company has secured a long-term supply of naptha from Saudi Arabia.
POIC Lahad Datu has a container terminal as well as terminals for liquid and bulk cargo which have been in operation since 2013.
The investment envisages about two million tonnes of petrochemical products, which will be shipped overseas via about 70,000 containers a year, with some products going through POIC’s liquid bulk jetty.
It is expected to offer 3,500 job opportunities while the plant is under construction and 1,500 jobs after it is completed.
Meanwhile, Madius in his speech revealed that Burel Industries has obtained the Malaysian government’s approval for its project, and it has also signed a 20-year supply agreement for naphta as well as securing several tranches of funding needed for the Lahad Datu investment.
“The investment will have a significant impact on POIC Lahad Datu which, by anchoring on its comprehensive port infrastructure and strategic geographical location, is hoping to develop Sabah’s east coast into a regional and international logistics, shipping and industrial hub,” he added. — Bernama
Read more at https://www.thestar.com.my/business/business-news/2019/03/07/sabah-to-get-rm13bil-investment-at-industry-cluster-in-lahad-datu/#D9Tmj4kfmULfRwBk.99