Lahat Datu is set to become the nation’s centre for downstream economic activities that use oil palm residue for, among others, manufacturing pulp and paper.
The vast quantity of palm biomass available in the Tawau division in eastern Sabah is also suitable for the manufacture of fibre reinforcing composites, block boards, plywood, moulded particle boards and medium density fibre boards.
There are opportunities for the manufacture of various types of vitamins, supplements and personal care products, such as soap, candles, crayon, cosmetics, lubricants and polyurethane.
Located in Lahad Datu is the Palm Oil Industrial Cluster (POIC), a project undertaken by the Sabah Government to encourage palm oil and palm fibre biomass downstream industries.
Federation of Malaysian Manufacturers’ small and medium industries committee chairman Tan Sri Soong Siew Hoong said in a statement that under the first two phases of the POIC, a total of 460ha had been developed with a jetty for 6,000 to 30,000 deadweight tonnage vessels.
He said 85% of the industrial lots had been taken up by investors.
Phase 3A, with an area of 218.8ha, is currently being developed.
The statement was issued in conjunction with a seminar here yesterday to expose entrepreneurs to the vast potential existing in oil palm waste downstream industries in Sabah.
Soong said there were major opportunities in the fuel and power supply industries involving biodiesel, biogas from effluent ponds and energy from empty fruit bunches among others.
Potential entrepreneurs were also invited to provide fertilisers for oil palm plantations as well as other services related to crop integration, inter-cropping, pest and fungus control, higher levels of planting materials in the form of tissue culture, germinated seed preparation and breeding, he added.
Soong said there were over six million tonnes of empty fruit bunches annually from Sabah palm oil mills, which was a huge amount of raw material for a host of new industries.
“Within a 50km radius of Lahad Datu, there are 52 palm oil mills, and around Sandakan, there are just as many,” added Soong.
