Apical Doubles Palm Oil Refining Capacity in West Sumatra, Indonesia

PADANG, INDONESIA - Media OutReach Newswire - 4 July 2024 - Apical, a leading vegetable oil processor, held a groundbreaking ceremony today at its PT Padang Raya Cakrawala (PRC) facility to mark the construction of a new crude palm oil (CPO) refinery and fractionation plant for cooking oil production. Located in Padang City, West Sumatra, Indonesia, these new plants are set to boost Apical's production capacity to meet growing demands of both domestic and international markets.

The new plants, scheduled to be completed by 2025, was officiated by the Governor of West Sumatra, Mahyeldi Ansharullah, with Apical's Director of Social, Security and License, Gunawan Sumargo, in attendance. This expansion represents a major milestone for both Apical and the region. The refinery will have the capacity to process up to 3,500 metric tonnes (MT) of CPO per day, while the cooking oil fractionation plant will have a capacity of 3,000 MT per day.

"We applaud Apical for its investments in Padang. We hope this move will open up more employment opportunities for the community, especially in West Sumatra, while also guaranteeing a stable supply of cooking oil in the region," said Mahyeldi.

Gunawan further elaborated on the progress of PT PRC's expansion, "The addition of the new plants marks the beginning of the third stage of our expansion plan which started in 2019. With these new additions, our combined CPO refining capacity at PT PRC will increase to 7,000 MT per day while the capacity for cooking oil fractionation plant will increase to 5,900 MT per day."

Apical's decision to add a cooking oil fractionation plant underscores its commitment to growing its downstream business segment, aligning with the Government of the Republic of Indonesia's agenda of promoting the downstreaming of palm oil. This move solidifies Apical's role as a critical player in supporting the country's focus on the palm oil industry.

PT PRC, the largest palm oil refinery in Padang, is a multi-product refinery capable of producing palm olein, stearin, biodiesel and fatty acid. Currently, the refinery has a refining capacity of 1.2 million MT per annum, which will double to 2.4 million MT upon completion of its expansion. Strategically located in West Sumatra, this expanded facility will cater to demands in Indonesia and serves markets in the Middle East, Africa, and the Indian subcontinent region.

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