Pipeline Installation & Connection Contract Update (9418Q)
27 October 2011 - 6:33PM
UK Regulatory
TIDMBIP
RNS Number : 9418Q
Biofutures International plc
27 October 2011
Biofutures International plc
("Biofutures" or the "Company")
Update on Pipeline Installation and Connection Contract
27 October 2011
Biofutures is pleased to announce that its wholly owned
subsidiary, Zurex Corporation Sdn. Bhd., has today entered into a
contract valued at RM1.1m (approximately GBP0.23m) with Da Yuen
Engineering and Construction for the supply and installation of 4km
of pipeline that will connect its refinery with the
pipeline-interchange system of the Palm Oil Industrial Cluster
(POIC), as mentioned in the Chairman's statement of the 29
September 2011.
The completion of the connecting pipeline is beneficial to Zurex
as it serves two major purposes. First, it will allow Zurex to ship
in crude palm oil in sufficient quantities at more favourable
prices from around East Malaysia and Indonesia as compared to the
local purchases of crude palm oil supplied by tankers. Second, it
will allow Zurex to tap a greater marketplace as compared to the
local market in the immediate vicinity of the refinery. Direct
sales to overseas markets will provide certainty both in terms of
sales and pricing and allow forward planning on the purchase of
feedstock, production schedules and use of the refinery.
The original expectation, as set out in the Interim Results
statement, was that the interchange system and pipeline would be
operational at the end of October 2011. However, POIC have now
indicated that the interchange will not be ready until the end of
December 2011. As a consequence, the installation of the pipes from
the Zurex Refinery to POIC's gantries and infrastructure is
expected to be completed by mid January 2012.
Enquiries:
Biofutures International plc Tel: + 603 6203 5136
Joe Wong, Chief Executive Officer
www.biofuturesplc.com
Daniel Stewart & Company plc Tel: + 44 (0) 20 7776 6550
Antony Legge / Oliver Rigby (Nomad)
Colin Rowbury (Broker)
www.danielstewart.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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