Processing and mid-stream production

Historically the LKTNS commitment in down processing of palm oil for edible oil production has dated back in the early 1970s. In 1973, the SLDB’s schemes accounted for 29% of Sabah’s total oil palm area of 21,822 ha (Annual Report, 1973). In addition, three Crude Palm Oil (CPO) mills were built by the SLDB in Apas Balung near Tawau in 1969 which dated the first CPO mill in Sabah, and among others were at Klias near Beaufort, and at Sungai Manila in Sandakan which witnessed the SLDB’s operations to be supported by a US$14m loan over 25 years by the Asian Development Bank (ADB) enabling the Board not only to develop the palm oil processing system, but also the storing infrastructure to cater for the six on-going schemes of Apas Balung, Pegagau, Silabukan, Sungai Manila, Suan Lamba, and Klias.

In 1975 the Board managed five major oil palm processing factories in Apas Balung (Tawau), Silabukan (Lahad Datu), Sungai Manila (Sandakan), Suan Lamba (Sandakan) and one in Beaufort (in the South-western part of Sabah) with a total processing capacity for the board of 120 tons per hour with an additional 15 tons per hour processed in Langkon, Kudat North in the western part of Sabah. At the same time the board had constructed storage facilities and three bulking installations at Karamunting, Sandakan (17,000 tons), Tanjung Batu, Tawau (9,500 tons), and Lahad Datu (5,000 tons).

All these processing facilities were transferred to different ownerships after the corporatisation in 1996, and currently the LKTNS is still active on processing with a join venture CPO mills, to name a fews;

Lahad Datu Edible Oil Sdn Bhd (LDEO)

The LDEO is a refinary facility which is located within the POIC industrial area in Lahad Datu district. The LDEO is one of the residual assets after the corporatisation of the LKTNS in 1996. It was developed in 1992 and it’s a join venture operation between the LKTNS and the Maytown Sdn Bhd (Wilmar Group Internation Ltd.,).

Pandewan Palm Oil Mill Sdn Bhd (PPOMSB)

The LKTNS newest asset is the Pandewan Palm Oil Mill Sdn Bhd (PPOMSB) which started to be developed in 2013 and started operation in November 2015. Located in the interior of Sabah, PPOMSB is about 89km from Keningau township. The multi-million project is built on a 15-acre area within the LKTNS’s palm oil plantation estate. Currently, the mill is ready for commissioning and has the capacity to process more than 45 metric ton of fresh bunch fruit (FFB) per hour. In 04/11/2015 the cabinet of Sabah (18/2015) agreed for the LKTNS to form a joint venture with the Kilang Harta Hijau Perladangan Sawit Sdn. Bhd., to run the PPOMSB.

Keningau Palm Oil Mill Sdn Bhd (KPOMSB)

The KPOM (Keningau Oil Palm mill) is a joint venture business between LKTNS with a local business man. It started to operate in July 2003 with the capacity of 45mt of FFB per hour with potential upgrading to 90mt FFB per hour. The mill has been providing a strong market value chain to other palm oil estates especially the smallholder oil palm growers from the surrounding areas mainly Keningau.