Oiltek International Limited has secured new contracts in Indonesia and Malaysia worth a total of RM40.1 million.
The new contracts include the design, fabrication, delivery, testing and commissioning of one new 10TPH2 shortening plant and one new 7.5TPH Cocoa Butter Substitute plant in Indonesia; one new 10TPH shortening plant in Indonesia; and one new 200MTD2 dry fractionation plant based on RBD3 Palm Olein at iodine value 65 (IV65) in Malaysia.
Mr Henry Yong Khai Weng, Executive Director and CEO of Oiltek, said, “The global edible oils market is expected to grow significantly from a projected value of US$212.6 billion in 2022 at a CAGR of 4.8% to hit US$268.9 billion by 20271, which augurs well for the macro- outlook of our industry. Notwithstanding the current uncertain macroeconomic environment, our customers continue to expand their production to cater to increased demand, and we continue to offer them our reliable, efficient, and cost-effective process engineering solutions that incorporate the latest process engineering know-how and technologies that are tailored to their requirements. With these contract wins, we aim to maintain our growth trajectory for FY2023 and focus on the execution of our order book.”
The cumulative value of new contracts awarded to date in FY2023 amounts to RM260.0 million, which represents an increase of 32.6% from RM196.1 million worth of contracts won in FY2022. These latest contracts bring the Group’s current order book to RM357.2 million, to be fulfilled over the next 18 to 24 months.
Oiltek’s share price as of 12 October 2023 after market close was S$0.220.
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ABOUT OILTEK INTERNATIONAL LIMITED
Oiltek International Limited, an established integrated process technology and renewable energy solutions provider, specialises in the provision of reliable, innovative, diversified, and comprehensive range of refinery processes and engineering solutions for use across all different sectors of the vegetable oils industry value chain globally. The history of the Group can be traced back to its principal operating subsidiary, Oiltek Sdn. Bhd., which was incorporated in Malaysia on 1 December 1980. With over 42 years of track record, Oiltek has successfully designed, built and commercialised plants in more than 33 countries across 5 continents.
Oiltek operates three key businesses – Edible & Non-Edible Oil Refinery, Renewable Energy, and Product Sales and Trading.
For its Edible & Non-Edible Oil Refinery segment, the Group provides engineering, procurement, designing, construction and commissioning (“EPCC”) services for edible and non-edible oil refining plants, downstream specialty products and processing plants; upgrading and retrofitting of existing facilities; and turnkey outside-battery-limits (“OSBL”) infrastructure engineering.
For the Group’s Renewable Energy segment, Oiltek provides services for renewable energy industries including EPCC of multi-feedstock biodiesel, enzymatic biodiesel, winter fuel, and palm oil mill effluent (“POME”) biogas methane recovery plants; upgrading and retrofitting of existing facilities; and turnkey OSBL infrastructure engineering which includes the environmental solutions and integration into steam and power generation.
Oiltek’s Product Sales and Trading segment generates recurring income for the Group, and its services include engineering component sales, agency and distributorship, and specialty chemical product trading.
