PalmOilMagazine, PANGKALAN BUN – PT Citra Borneo Utama (CBU) and Grand Resources Group (Singapore) Pte, Ltd., did Offtake Agreement to provide derivative products of palm oil - Stearin and Olein. The signing of memorandum of understanding was held on 12 May 2021 virtually between Indonesia and Singapore.
CBU is a refinery and fractionation palm oil company which 32% of the downstream sectors belong to PT Sawit Sumbermas Sarana Tbk (SSMS). The products of CBU from derivative products were produced by milling and refining. The first process is fractionation with crystal and the separating process is about to produce solid form (stearin) and liquid form (olein). GRGS is the subsidiary of Grand Industrial Holding Co. Ltd., as the big company operating kinds of industry from China.
The signing of cooperation was conducted by Monica Putri as Marketing Deputy Director CBU, and Robert Xiu Qiang of GRGS with the initial contract reaching US$ 10 million. It was directly witnessed by CEO SSMS, Vallauthan Subraminam; CEO Citra Borneo Indah Group, Rimbun Situmorang; and Director of CBU, Balakrisnan Naidu virtually.
In her speech, Monica said, the goal of the cooperation is to make sure about the stearin and olein procurement plans to fulfill the needs. GRGS got profits to get the stable supply of stearin and olein. The products are rare in the world markets.
“These are important milestones for both sides. It is hoped that after the signing, there would be the next profitable cooperation to be developed,” she said, as in the official statement to PalmOilMagazine, Wednesday, (19/5/2021).
In the future, she said, there would be supports to CBU and the sustainable promising business for the shareholders and stakeholders. For the CPO supply, CBU is supported by SSMS 80% capacity in CBU derive from SSMS. 20% others are from the third sides.
By the end of 2020, SSMS added the share ownership in CBU reaching 32% which was 19% in the prior. SSMS is optimist that the company could increase the liquidity and profit in the future by the share ownership. (T2)
