Investment Opportunities

Apart from being developed for the growth of a wide range of palm oil and biomass — based downstream industries as the core sector (Table 2.1), POIC Lahad Datu also serves as a center where investments in upstream and related industries will be

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Fig. 2.2 (a) Aerial view of phases I and II area, POIC Lahad Datu. (b) Land extension at phase Ilia area, POIC, Lahad Datu

Table 2.1 Value-adding opportunities in palm oil and biomass-based industries

Industry

Raw materials

Value-adding products

Palm oil based

Crude palm oil

• Food based

Refined palm oil

Cooking oil, shortening, margarine, vanaspati,

Palm olein

confectionery, bakery fats, ice cream, cocoa butter

Palm stearin

alternatives, specialty fats

Crude palm kernel oil

• Phytonutrients

Refined palm kernel oil

Carotenes, tocols (vitamin E), coenzyme Q10,

Palm kernel olein

squalene, phytosterols, lecithin

Palm kernel stearin

• Oleochemicals

Basic oleochemicals, cosmetics, personal care products, candles, household care products, lubricants, emulsifiers, soaps, degreasers, plastics, textile processing, metal processing, protective coating, explosive, etc.

Palm biomass

Empty fruit bunch

• Compost, biofertilizer

based

Mesocarp fiber

• Fiber, plywood, pulp and paper, wood based

Palm kernel shell

products, medium fiber board, wood plastics

Palm frond

composite, paper products, particle board, furniture

Palm trunk

• Pellets, briquettes, biogas, biofuels (petrol

Palm oil mill effluent

substitutes, diesel/jet fuel substitutes)

• Animal feed

• Bio-based chemicals (bio-plastics, nutraceutical, and others)

supported and integrate vertically with the downstream industries to achieve the synergistic effects under the industrial cluster concept (Fig. 2.3), a concept with ben­efits proven all over (Solved et al. 2008; Falck et al. 2010; Delgado et al. 2010a, b; McCann and Folta 2011). In addition, it will be followed by the development of other industrial clusters, such as oil and gas, regional logistics hub (Rotterdam of the East), SMI and food clusters, and others in stages (Fig. 2.3).