CHINA FERTILIZER GIANT MULLS INVESTMENT IN BIO-FERTILIZER IN MALAYSIA

KOTA KINABALU (Malaysia), Nov 18 (Bernama) -- Sabah looks set to entrench
itself as the region's major fertiliser producer with the prospective entry of a
major manufacturer from China.

Shenzhen BaTian Ecotypic Engineering Co Ltd, one of the biggest fertilizer
manufacturers in China, had expressed interest to invest in the fertilizer
cluster at the Lahad Datu palm oil industrial cluster (POIC Lahad Datu).

In a meeting with officials of POIC Sabah Sdn Bhd, a company owned by the
government of East Malaysia state of Sabah, here Wednesday, BaTian's chairman
and chief executive officer Dr Huang Peizhao said the company is interested in
tapping the BIMP-EAGA market with its 20-year experience in producing a wide
range of fertilisers.

Through its extensive research in plant nutriention and agronomy, BaTian has
achieved many breakthroughs in fertiliser production and application. Besides
compound fertilisers (commonly used in oil palm plantations), BaTian also
produces controlled release fertilisers and organic fertilisers.

BaTian is developing fertilisers to reduce labour requirements in
application and to raise the level of fertiliser uptake by plants from the
industry from an average of 40 per cent to 60-70 per cent.

Dr Huang is among a nine-member Department of Agriculture of Guangdong
Province delegation who arrived here yesterday for a five-day visit.

Their visit to Malaysia was initiated by the Ministry of Science,
Technology and Innovation. Included in their itinerary is a visit to POIC Lahad
Datu, in Sabah.

They were led by Cai Hanxiong, vice director-general of the Department of
Agriculture, Guangdong Province.

The visitors were briefed on POIC Lahad Datu and the region's fertiliser
market by Dr Lee Min Tong, a consultant with POIC Sabah and an expert in
agronomy and cocoa.

He said Malaysia consumed about four million tonnes of fertilisers last
year.

Most of the components of compound fertilisers such as urea, ammonia
sulphate, rock phosphate, murate of potash and kieserite were imported from
China, among other countries.

POIC's CEO Dr Pang Teck Wai said the Chinese interest in using POIC Lahad
Datu as their staging post for the wider Southeast Asian fertiliser market
synchronises with POIC's impending collaboration with the Port of Rotterdam
Authority (POR of The Netherlands) to upgrade logistics infrastructure in Sabah
and elevating Lahad Datu to international maritime hub status.

Fertiliser imports and exports are not subject to taxation in Malaysia.
Under the Asean Free Trade Agreement (AFTA), tariffs for fertilisers are set at
a nominal 0 to five per cent.

He encouraged the visitors to consider bio-fertilisers to take advantage of
the large volume of oil palm biomass such as empty fruit bunches, palm fronds
and POME (palm oil mill effluent).

Meanwhile, Cai said Sabah can leverage on its huge oil palm sector in the
lucrative trade between Malaysia and Guangdong Province.

Describing oil palm trees as a "treasure from tip to root', he said every
part of an oil palm tree and its processed products can find a ready market in
China.

He said the delegation's visit to Malaysia was also to explore the market
for a wide range of agriculture harvesting machinery produced in Guangdong and
investment opportunities in paddy planting.
-- BERNAMA