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

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

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…