08 November 2022

Sinarmas Cepsa Pte Ltd (SCPL) and its parent companies, the chemicals business of CEPSA and agribusiness Golden Agri-Resources (GAR), today signed a Memorandum of Understanding to expand the production of bio-based chemicals at SCPL’s site in Lubuk Gaung, Indonesia. The site is ideally positioned to serve customers worldwide and the existing facility, which started production in 2017, is fully utilised.

SCPL has a strong ambition to grow along the fatty alcohols value chain, with sustainable development at the heart of its strategy and operations. Global demand for fatty acids and natural alcohols is driven by growing demand for home and personal care products, as well as increasing demand for sustainable, bio-based solutions across a variety of the industries SCPL serves.

The expansion is expected to advance SCPL’s growth strategy, to contribute to solving environmental challenges, including climate change, and to support sustainable farming practices in Indonesia. Pending final investment decisions, this incremental production will bring additional employment and economic benefits to the local community.

“Sustainably sourced, bio-based alternatives are key requirements for our customers and the markets we serve” said Kung Chee Wan, CEO of SCPL. “We are excited to grow with our customers and increase the scale of our sustainable and traceable integrated supply chains.”

About Cepsa
Cepsa is a global energy and chemical company operating at every stage of the oil and gas value chain. Cepsa also manufactures products from plant-based raw materials and operates in the renewable Energy sector. Cepsa has 90 years of experience and a team of over 10,000 employees, who combine technical excellence with adaptability. Cepsa operates on five continents.

About Cepsa Química
Cepsa Química is a world leader in its sector and is leading the shift towards sustainable chemistry, with a clear commitment to the fight against climate change and the transition to a circular, non-fossil economy. The company leads the worldwide production of LAB, the main raw material used in biodegradable detergents, where Cepsa Química is a pioneer player. It is also number one in the production of cumene, an intermediate product used in the production of phenol and acetone, which are the main raw materials for the manufacture of engineering plastics and of which it is the world’s second largest producer.

Cepsa Química currently employs more than 1,000 people and has plants in seven countries around the world (Spain, Germany, Brazil, Canada, China, Indonesia and Nigeria).

About Golden Agri-Resources (GAR)
As an integrated agribusiness, GAR delivers an efficient end-to-end supply chain, from responsible production to global delivery. In Indonesia, its primary activities include cultivating and harvesting oil palm trees; the processing of fresh fruit bunches into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products globally. GAR’s products are delivered to a diversified customer base in approximately 100 countries through its global distribution network with shipping and logistics capabilities, destination marketing, on-shore refining and ex-tank operations. GAR also has complementary businesses such as soybean-based products in China, sunflower-based products in India, and sugar businesses.

• To promote and improve a positive HSEQ culture with the full commitment and participation of all employees, contractors, suppliers, customer and visitors.
• To ensure all its manufacturing and business activities are done in accordance with local regulations and best industry practices.
• To utilize available resources and technologies to prevent and eliminate the risk of injuries, occupational illnesses, environmental pollution and damage to properties.
• To continually excel in providing good quality products and services that exceeds the expectations of customers and stakeholders.
• To demonstrate visible commitment, enforcement, continuous improvement and provision of suitable resources to improve HSEQ management
• To inculcate a high performance and innovation culture
• To maintain constructive engagement with internal and external stakeholders in all aspects related to HSEQ

Golden Agri-Resources (GAR) is one of the largest palm oil plantation companies in the world. Our plantations are located in Indonesia and we manage more than 480,000 hectares of palm oil plantations (including smallholder farmers). We are a leading seed-to-shelf agribusiness—from growing oil palms with farmers to producing food for the present and future.

Sustainability is an essential part of our business and we are guided by our GAR Social and Environmental Policy (GSEP). The GSEP is the roadmap we share with our employees, smallholders, suppliers, and customers as we work together to realise GAR’s vision of a sustainable palm oil industry.

GAR believes that farming palm oil is an effective way to create jobs and alleviate poverty, and provides opportunities for communities to secure a better livelihood for themselves. As one of the largest plantation companies in Indonesia, operating largely in rural and remote areas, we not only play an active role in the well-being of our employees, but also in the wider communities where we operate.

Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and the corporate office is located in Singapore. GAR has several subsidiaries which includes PT SMART Tbk, our business operating in Indonesia; Victory Tropical Oil, our distribution business in Europe and the US; PT Dami Mas Sejahtera, our certified DxP seed producer and supplier; and our various businesses in China.

To learn more about Golden Agri-Resources, visit goldenagri.com.sg.

Cepsa is an integrated energy company operating at every stage of the oil value chain, with close to 10,000 employees. Cepsa is engaged in petroleum and natural gas exploration and production activities; refining, the transport and sale of oil and natural gas derivatives; petrochemicals, biofuels, co-generation and the sale of electricity.

Cepsa is Spain’s fourth largest industrial group in terms of turnover, and has been in the market for more than 80 years. It has a significant presence in Spain and, thanks to the progressive internationalization of its activities, it is now also active on several continents, marketing its products worldwide.

The chemicals business in Cepsa has a leading position globally through an integrated and diversified portfolio. It has an international presence, with chemical sites in Europe, Americas and Asia.

Cepsa’s activities includes the manufacture of raw materials for biodegradable detergents, high-technology plastics, solvents, synthetic fibres and pharmaceutical products, as well as a wide range of petroleum derivatives. Cepsa is a global leader in manufacture of linear alkylbenzene (LAB). It is also global leader in cumene, and is the world’s second largest producer of phenol and acetone.

One of Cepsa’s corporate values is constant improvement. To help the Company achieve that, it look towards innovation and technology. Cepsa has a Research Center which helps them to create value, optimize processes, and improve the quality of operations and products. For example, Cepsa has their own technology for the manufacture of raw materials for biodegradable detergents (LAB/LABSA), called DETAL, which is used in 80% of new plants in the sector all over the world.

To learn more about Cepsa activities, visit www.cepsa.com

• Establish a global manufacturing and marketing footprint.

• Develop distinctive competitive advantages in technology and manufacturing capabilities.

• Achieve excellence in safety, operations and supply chain.

• Provide innovative solutions, reliable quality and services for our customers.

• Attain global leadership in green and sustainable products.

Sinarmas Cepsa Pte. Ltd. is a supplier of oleochemicals, established as a joint venture between the chemicals business of Spanish integrated energy company Cepsa and Indonesian conglomerate  Sinar Mas Group.

Headquartered in Singapore and with production facilities in Lubuk Gaung, Indonesia as well as Genthin, Germany, our company is founded on strong synergies of its partners: Golden Agri-Resources Ltd (GAR) is the world’s second largest producer of palm oil with integrated operations and a strong presence in the APAC region, and Cepsa as a world leader in the Linear Alkyl Benzene (LAB) surfactant industry with a wide portfolio of chemical products and a leading presence in the Western hemisphere.

Sinarmas Cepsa Pte. Ltd. and its subsidiaries are fully committed to the production, marketing and development of fatty alcohols and alcohol derivatives based on sustainable palm oil and palm kernel oil (PKO).

As a member of the Roundtable on Sustainable Palm Oil (RSPO), we follow, promote and communicate the principles and criteria established by this initiative to all our stakeholders, be it employees, suppliers, and customers.

Moreover, we also have a privileged position with respect to our raw materials integration, allowing us to manufacture and market oleochemicals in their RSPO certified sustainable variants while also providing product traceability at various levels.

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