Joint venture to process Indonesian palm oil in Egypt
A joint Egyptian-Indonesian venture was set up last week to construct a palm oil processing plant in Egypt, according to Indonesian press reports. According to the agreement, Indonesia’s PT Misrindo Usama Perindo will own 90 percent of the five million dollar facility while Egyptian Degla Investment Group will hold 10 percent.
The factory will produce cooking oil products, including butter, shortening and margarine. The majority of the manufactured goods will be directed towards the Egyptian market, while the remaining portion will be exported to various Middle Eastern and North African markets.
For economic reasons, Egyptian consumption of edible vegetable oils is increasing and diversifying in recent years. Egyptians consume 1,036 million tons of vegetable oils annually, with local production standing at 93 million tons, a mere 8.9 percent. Of the total vegetable oil imports to Egypt, palm oil comprises of 55 percent, or 510 million tons a year. Soybean oil accounts for 37.5 percent of imports, while sunflower and cottonseed oils make up the remaining share.
Palm oil was first introduced to the region in the 1980’s. Egypt imports the bulk of its palm oil products, from Malaysia, which controls over 50 percent of the world's traded palm oil. Indonesia and Singapore supply the rest.
The Misr Gulf Oil Company, whose processing plant in Egypt brought its first products to the market in 1988, processes several forms of palm oil products, which are sold on the local market as well as exported to Libya, Syria, Jordan, Kuwait, Saudi Arabia and Sudan. — (Mena Report)
© 2001 Mena Report (www.menareport.com)