Sign In
27 Oct 2011 08:33
Biofutures International plc
("Biofutures" or the "Company")
Update on Pipeline Installation and Connection Contract
27 October 2011
Biofutures is pleased to announce that its wholly owned subsidiary, Zurex Corporation Sdn. Bhd., has today entered into a contract valued at RM1.1m (approximately £0.23m) with Da Yuen Engineering and Construction for the supply and installation of 4km of pipeline that will connect its refinery with the pipeline-interchange system of the Palm Oil Industrial Cluster (POIC), as mentioned in the Chairman's statement of the 29 September 2011.
The completion of the connecting pipeline is beneficial to Zurex as it serves two major purposes. First, it will allow Zurex to ship in crude palm oil in sufficient quantities at more favourable prices from around East Malaysia and Indonesia as compared to the local purchases of crude palm oil supplied by tankers. Second, it will allow Zurex to tap a greater marketplace as compared to the local market in the immediate vicinity of the refinery. Direct sales to overseas markets will provide certainty both in terms of sales and pricing and allow forward planning on the purchase of feedstock, production schedules and use of the refinery.
The original expectation, as set out in the Interim Results statement, was that the interchange system and pipeline would be operational at the end of October 2011. However, POIC have now indicated that the interchange will not be ready until the end of December 2011. As a consequence, the installation of the pipes from the Zurex Refinery to POIC's gantries and infrastructure is expected to be completed by mid January 2012.
Enquiries:
Biofutures International plc | Tel: + 603 6203 5136 |
Joe Wong, Chief Executive Officer | |
www.biofuturesplc.com | |
Daniel Stewart & Company plc | Tel: + 44 (0) 20 7776 6550 |
Antony Legge / Oliver Rigby (Nomad) | |
Colin Rowbury (Broker) | |
www.danielstewart.co.uk |
Follow the stocks
