Agricultural commodity merchant Louis Dreyfus Company (LDC) is expanding its palm oil refining business in Indonesia, which will include the construction of a new glycerine plant and higher production of biodiesel, according to a senior company official.
Rubens Marques, LDC’s chief executive for South and Southeast Asia, told Reuters that the company is “investing significantly to expand its refining complex in Lampung with the addition of a new glycerine refining plant, edible oil packing plant and warehouse.”
Marques said these developments support LDC’s strategy to diversify revenue through value-added products and drive operational efficiency and synergies at the site.
The new glycerine refining plant in Lampung will have an annual production capacity of 55,000 metric tons, primarily serving manufacturers of food, pharmaceutical and personal care products. Construction on the plant is expected to start this month, and operations are scheduled to begin within 18 months.
In addition, LDC is also augmenting its biodiesel capacity at the Lampung site to not only increase biodiesel production but also provide an additional source of crude glycerine, a byproduct to be used in the newly established glycerine refinery.
The expansion of LDC’s palm oil refining business in Indonesia is part of the company’s broader strategy to tap into the growing demand for food products in Asia. By diversifying into value-added products like glycerine, the company aims to enhance its operational efficiency and revenue streams.
The investments in the Lampung complex underscore LDC’s commitment to strengthening its presence in the Indonesian palm oil market, which is a key supplier of the increasingly important commodity.