By Aidila Razak, KiniBiz

'Business as usual' for Lahad Datu palm oil refiners

As the standoff against intruders continue, refiners in Lahad Datu claim their operations have not been adversely affected.

“It is business as usual for now although we will continue to monitor the situation as we value the safety of our workers,” a Kuala Lumpur Kepong official told KiniBiz today.

It is understood that there have been no problems of access to the plantations, although trucks transporting crude palm oil to the ports have had to take a longer route due to security roadblocks.

“Still, there has been no disruption,” the official said.

Other refiners are Kwantas Corp and Wilmar International. Wimar’s refinery is a joint venture with TSH Resources. The three refineries have a production capacity of 1.8 million tonnes per annum.

AmResearch said that TSH/Wilmar’s refinery, located in Kunak, is “not affected by the shootout” so far. Gunmen were spotted at Kunak earlier this week.

Similarly, Plantation Industries and Commodities Minister Bernard Dompok was reported yesterday as saying that the refiners will not be affected as they are located in town, further from the hostilities.

This clarifies a Reuters report yesterday that Malaysian palm oil refineries located near the standoff point are “preparing to halt operations if the violence drags on”.

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