Indonesian to Invest RM100 Million in 2 Plants in Malaysia

INDONESIAN entrepreneur and scientist Satya Darshan plans to invest some RM100 million to set up two manufacturing plants in Malaysia to produce palm kernel oil-based therapeutics and medicated products as well as biofuels from palm oil and palm kernel oil.

Satya, chief executive officer of Onasen Sciences Sdn Bhd and Lycozone Sdn Bhd, said Malaysia was chosen as the company’s global headquarters due to its infrastructure, availability of researchers, palm oil supply and access to global market.

The headquarters here will integrate research, product development, manufacturing, packaging, marketing and sales as the company will sell its products worldwide.

Satya said half of its investment allocation will be used for the Onasen facility to produce and package over-the-counter formulations for medical and skin use, using ozonated palm kernel oil.

Another RM50 million will be spent on the Lycozone plant that will produce ozonated palm kernel and olive oils as well as a range of environmental-friendly biofuels and fuel additives.

“We will build both factories separately in the Klang Valley. We haven’t decided on the locations yet.

“The investments will last for the next two to three years, after which we will invest more to scale up our production and research and development (R&D) activities here,” Satya told a news conference in Kuala Lumpur yesterday.

He said Onasen is expected to break even and fully recover its cost within three years, while Lycozone within two years.

“Onasen expects to achieve a turnover of US$40 million by 2014,” Satya said, adding that it is eyeing the over US$800 million (RM2.66 billion) global topical antibiotics market.

Patents have been filed in the UK for Onasen and Lycozone’s technologies, which were developed jointly with a few other scientists.

“We are the only one with that technology (ozonated palm kernel oil for topical applications),” Satya said.

Onasen is currently talking to a few palm oil companies to get the supply of palm kernel oil for the company’s production.

“We will need 20 tonnes of palm kernel oil a month and we are looking at a few suppliers who can supply us on a continuous basis,” Satya said.

For Lycozone, the company has yet to determine the amount of palm kernel oil needed.

Satya also owns a company that produces ozonated olive oil-based skincare products in Jakarta.

Source : Business Times

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