Citra Borneo and Grand Resources Sign Stearin and Olein Offtake Agreement

By : Abraham Sihombing | Tuesday, May 18 2021 - 20:55 IWST

The signing situation of an offtake agreement, PT Citra Borneo Utama (CBU) and Grand Resources Group (Singapore) Pte, Ltd. (Photo: PT Sawit Sumbermas Sarana Tbk Public Relations)
The signing situation of an offtake agreement, PT Citra Borneo Utama (CBU) and Grand Resources Group (Singapore) Pte, Ltd. (Photo: PT Sawit Sumbermas Sarana Tbk Public Relations)

INDUSTRY.co.id - Pangkalan Bun - PT Citra Borneo Utama (CBU) and Grand Resources Group (Singapore) Pte, Ltd. (GRGS) virtually signed an Offtake Agreement for the provision of palm oil derivative products, namely Stearin and Olein, on 12 May 2021.

CBU is a palm oil refining and fractionation factory which is a downstream industry whose 32% stake is held by PT Sawit Sumbermas SaranaTbk (SSMS). Meanwhile, GRGS is a subsidiary of Grand Industrial Holding Co. Ltd., which is a large Chinese company engaged in various industries.

CBU produces palm oil derivative products through a milling and refining process. The process are consisted of two stages, where the first stage is a fractionation. The fractionation is a process of crystallization and the separation which produces solid stearin and liquid olein.

The signing of this offtake agreement was carried out by Monica Putri, the Marketing Deputy Director of CBU, and Robert Xiu Qiang represented the GRGS. The initial contract value of this agreement is of USD10 million. The signing was witnessed directly and virtually by the CEO of SSMS, Vallauthan Subraminam; CEO of Citra Borneo Indah Group, Rimbun Situmorang; and CBU Director, Balakrisnan Naidu.

In her remarks, Monica stated, the purpose of this cooperation was to ensure the plan of stearin dan olein supply to meet needs. In the cooperation, GRGS benefits from being able to obtain a steady supply of stearin and olein, both of which are still scarce in the world market. Meanwhile CBU benefits from having regular buyers.

This is an important milestone for CBU in developing its business and the quality of each product. “This will be an important milestone for both parties.  After the signing, it is expected to be continued with mutually beneficial cooperation and increaseable,” said Monica.

In the future, this cooperation is expected to provide support to CBU for its promising business continuity for all shareholders and stakeholders. For its CPO raw material, CBU is currently still fully supplied by SSMS. Therefore, around 80% of the total raw material needed by CBU comes from CPO that is supplied by SSMS and the remaining comes from third parties.

At the end of 2020, SSMS increased its share ownership in CBU to 32% compared with 19% before. SSMS is optimistic the share ownership increase is expected to raise the company's liquidity and profits in the future. (Abraham Sihombing)

News Comment

Today's Industry

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…

PT Sariguna Primatirta Tbk (Tanobel Group)

Jumat, 13 Mei 2022 - 15:45 WIB

Demand Increases, CLEO Recorded IDR307.7 Billion Sales in Q1-2022

PT Sariguna Primatirta Tbk (Tanobel Group), a public company and manufacturer of Bottled Drinking Water (AMDK) with the IDX ticker code: CLEO: IJ, recorded a 30% increase in sales reaching IDR307.7…

TopWorx DX PST with HART 7 monitors and tests valve assemblies, providing detailed data and diagnostics and enabling the digital transformation of process applications.

Jumat, 13 Mei 2022 - 15:15 WIB

Emerson’s New Emergency Shutdown Discrete Valve Controller Improves Safety, Uptime in Hazardous Applications

Emerson introduced the TopWorxTM DX PST with HART® 7. Units provide valuable valve data and diagnostic information, enabling the digital transformation of process applications.

PT Buyung Poetra Sembada Tbk (“HOKI”)

Kamis, 12 Mei 2022 - 15:26 WIB

HOKI Launches Another New Product

PT Buyung Poetra Sembada Tbk (“HOKI”), a Public Company which produces quality rice under the “Topi Koki” and “HOKI” brands, continues to innovate by re- launching new products.…

Rockwell Automation Inc. /obe.wisc.edu

Kamis, 12 Mei 2022 - 14:19 WIB

Rockwell Automation Releases New, Highly Customizable Industrial Monitors

Rockwell Automation, Inc. (NYSE: ROK), the world’s largest company dedicated to industrial automation and digital transformation, today announced the release of a new line of industrial monitors…