PHI Group to Set up Oleochemical Plant with Malaysian Company

CNN Money reported that PHI Group, Inc. (OTCMKTS:PHIL)has signed an agreement with Fusion Crest Sdn Bhd to jointly set up an oleochemical plant in Johor, Malaysia.

As quoted in the market news,

The oleochemical plant project requires an investment of approximately US$ 15 million and is capable of processing 120 tons of fatty acid distillates per day. Starting the second year of operation it is estimated that the plant will be able to generate about US$ 73,400,000 in revenues and US$ 13,200,000 in profits before taxes, respectively. Phi Group will be responsible for providing the total required investment capital and will own 70% of the joint venture company.

Unlike petrochemical, oleochemical is generally biodegradable, exhibits low toxicity and uses renewable sources as feedstock, thus making it the preferred raw materials for various industries.

Henry Fahman, Chairman and CEO of PHI Group, Inc., stated:

We have studied this business opportunity in Johor, Malaysia for the last couple years and believe the timing is right to partner with Fusion Crest to set up and operate this oleochemical plant, which is expected to add very significant value for shareholders of both companies.

Click here for the full CNN Money report