Chemrez To Invest $15Million In Olechems Capacity Expansion
From: Renewable Chemicals
Chemrez Technologies Inc. announced in late June it has earmarked $15 mln to expand the capacity of its manufacturing facilities. Managing Director Jun Lao said the company will not build new plants but invest in new equipment to raise capacity.
Chemrez currently has a capacity of 90,000 tonnes per year, about 60,000 of which are dedicated to coco methyl ester (CME) while the remainder is for other coconut oil-derived chemicals.
The capacity expansion is part of the company's plan to expand its export activities to reach an export target of 50% of total revenues by 2014. Chemrez has penetrated the US market which, according to Lao, has a sophisticated hair and body shampoo industry and therefore a huge market potential. Other targets of the export expansion plans would likely be Japan and Thailand, Lao added.