Palm oil processor looks to set up in France

By Jane Byrne

- Last updated on GMT

Palm oil supplier Sime Darby Plantation is looking at firming up plans to open a new oil processing facility in the Languedoc-Roussillon region of France, citing growing demand for edible oils in southern Europe.

The company said that the proposed plant, to be located in the coastal town of Port-la-Nouvelle, would complement its palm oil refinery operations in the Netherlands, which is owned by its European subsidiary, Sime Darby Unimills.

Sime revealed its goal of having palm-based feedstock for the processing site in Port-la-Nouvelle eventually sourced from its operations in Liberia.

In the shorter term, it said that certified sustainable palm oil (CSPO) for the French site would be obtained from other internal sources while other vegetable oils will be sourced externally, potentially from farmers in the region.

“While we continue to assess other potential locations in Europe as well as other parts of the world, the Port-la-Nouvelle location has the added advantage of local feedstock supply as well as its proximity to Sime Darby Plantation’s operations in Liberia,”​ said Sime Darby Bhd president and group CEO Dato’ Mohd Bakke Salleh.

The edible oils supplier said that the proposed plant could be up and running by the end of 2013, depending on the outcome of its planned feasibility studies and due diligence exercises.

Many players in the Europe based bakery industry are focused on sourcing only traceable certified sustainable palm oil for use in biscuits and other dough based products within a deadline of four to five years from now.

Sime Darby Plantation is the plantation and agri-business subsidiary of Sime Darby Bhd, the world’s largest listed producer of palm oil. The company claims that currently more than one-third of its production is CSPO under guidelines established by the Roundtable on Sustainable Palm Oil (RSPO).

Sime Darby Unimills supplies natural vegetable oil-based ingredients to the European food industry. The company also produces lecithins, including enzymatic technology-based versions for use in bakery products, confectionery, and spreads.

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