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P A L M O I L M I L L P R O C E S S A U T O M A T I O N

0 2 / 0 9 / 9 1 - t o 0 8 / 0 9 / 9 1

J.M. NO E L Doc No. 2404

Te c h n o l o g y Division Janu a r y 1992

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P ag e M i s s i o n S c h e d u l e 1 S u m m a r y a n d c o n c l u s i o n s 2 M I L L B E L O N G I N G TO P A M O L P L A N T A T I O N S SDN. BHD. 3 D e s c r i p t i o n of the m a n a g e m e n t s y s t e m 4 Users' r e m a r k s 4 T HE S O C F I N M A L A Y S I A GROUP: I D E N T I F I E D U S E R 6 M i n y a k E s t a t e 6 J o h o r e L a b i s 8 E C O N O M I C A N D T E C H N I C O - E C O N O M I C D A T A 9 S taf f C o s t s 9 S O C F I N p r o d u c t i o n c o s t s * 9 P r o d u c t i o n c o s t s 9 E S T I M A T E D C O S T OF P A L M O I L M I L L A U T O M A T I O N 10 C O M M E N T S A N D C O N C L U S I O N S 1 1 I m p r o v e m e n t of m ill e f f i c i e n c y 11 R e d u c t i o n in e q u i p m e n t m a i n t e n a n c e c o s t s 11 I n c r e a s e in p r o d u c t i o n c a p a c i t y 11 R e d u c t i o n in st aff c o s t s 12 A D D E N D U M r 12

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REPORT ON THE COGEN MISSION

PALM OIL MILL PROCESS AUTOMATION

02/09/91 to 08/09/91

The a im of the mission was twofold:

- visit already automated mills, to analyze their operations,

- meet the partner (SOCFIN), define objectives, v isit the site

chosen for possible installation of a process a utomation

system and determine the main technical characteristics.

Miss i o n schedule

In Malaysia:

02/09/91: Trip to K l uang (Johor)

Tour of the PAMOL mill (UNILEVER P L A NTATIONS GROUP) 03/09/91: M e e t i n g with J.M. Mougins, SOCFIN Secretary General,

and wi t h P. Girard (COGEN Deputy Coordinator) Definition of aims

O r g a n ization of visits

04/09/91 Trip to M i nyak Estate

Tour of mill

05/09/91 Trip to Johore Labis

Tour of mill

06/09/91 W o r k i n g session and lunch with J.M. Mougins and P.' Girard

In Singapore:

10/09/91 Dinner with Andr e w Tay, COGEN representative in

Singapore

11/09/91 Tour of SISIR

M e e t i n g with A n drew Tay

People m e t :

PAMOL Plantations SDN. BHD

Peter Yee : Technical Director

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SOCFIN O n g Tat Teik Pala Santhiran Jean-Michel Mougins Robert Lim Selvarag Sat

Group Secretary General

Estate Manager, M i n y a k Estate Factory Manager, M i n y a k Estate Production Costs m a n a g e r at M i n y a k Head of the central labora t o r y at M iny a k Estate

Estate Manager, Johore Labis Factory Manager, Johore Labis

SISIR

Cheo n g Soo Chin Manager, Electronics and C o mputer

Applications

SUMMARY A ND CONCLUSIONS

A u t o m a t i o n of the Jahore Labis site, a p a l m oil mill wi t h a capacity of 50 tonnes/hour .belonging to the SOCFIN Ma l a y s i a Group, w o u l d reguire investment a m o u n t i n g to a r ound M$ 2.5 m i l l i o n .

The o p e r a t i n g savings that could be exp e c t e d from this op e r a t i o n w o u l d amount to less than M$ 200,000 per ye a r under o p t i m u m conditions, with a return on investment a fter more than 13 years.

The project w o u l d therefore not be profi t a b l e under current economic conditions, as the perf o r m a n c e of the SOCFIN Group's p a l m oil mills is excellent, e specially as regards produ c t i o n

staff numbers and extraction yield.

Nevertheless, it w o u l d be worth w h i l e conti n u i n g the study of automation of the pa l m oil extraction process, and profi t a b l e a pplications could no doubt be found for it, p a r t i c u l a r l y in

Indonesia or Africa, w here the m a s t e r y of industrial

produ c t i o n facilities is no doubt less than in Malaysia.

(5)

MILL BELONGING TO PAMOL PLANTATIONS SDN. BHD.

The PAMOL mill, which belongs to the U N I L E V E R PLANTATIONS Group, is located in Kluang, Johor State, about four hours from Kuala Lumpur by road.

Due to the limited time available, Peter Yee, the Technical

Director, took us on a guick tour of the installations. Most

of the information was obtained d u ring lunch with

N.B. Sudhakaran, the Engineer responsible for mill m a i n t e ­

nance .

The mill was built in 1963 and renovated in 1984, pr i m a r i l y in the following areas:

central boiler house where boilers with a c a pacity of

25 tonnes/hour at 20 bar were installed and the

turboalternator units were replaced.

- the press shop, with the installation of U D W P15 type

p r e s s e s .

- clarification, with the installation of 3-phase decantors.

At that time, Peter Yee was made responsible for c arrying out

a study of and implementing integral autom a t i o n of the

p roduction process. Two years later, the installation was

brought on stream and has been w o r k i n g satisf a c t o r i l y since t h e n .

In theory, the mill can operate wit h o u t staff, apart from

certain wo r k stations such as sterilization. In practice, a

very small number of workers are involved in m o n i t o r i n g at the mill, though no precise figures were available on this point.

The automation system consists of: r * Sensors for: - flow rate - pressure - temperature - levels

* a data p rocessing unit with:

- analogue/digital converters

- central proces s i n g unit and peripherals (screen, keyboard and printer)

- control interfaces

* remote controlled eguipment, mainly consisting of motors,

electro-magnetic sluice gates, adjustment valves, speed

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Apart from the remote controlled equipment and the sensors,

all the automation equipment is c o n t ained in two air-

conditioned rooms, where two people m o n i t o r and totally

control production.

De s cription of the m a n a g e m e n t system

The system comprises two main sub-units:

- M.I.S. : M a n a g e m e n t Information System

This unit memorizes all the events o c c u r r i n g along the

p r o d u c t i o n line. In particular, it manages:

- technical daily production reports - incident reports

It also provides an instant disp l a y of all the parameters

recorded. The pressure curve for the boilers or the steam

vessel, or a graphic representation of power consumption

changes for an item of equipment duri n g the day can be brought up on the screen.

- M.C.S. : Manage m e n t Control System

This unit is used to control all the remote controlled

eguipment in real time from the console.

Based on a general b lock diagram, it is p o ssible to home in to a single item of eguipment and display its status, along with

all its control parameters. In addition, these parameters can

be mod i f i e d d i rectly from the console. For example, it is

p o ssible to carry out real time correction of the m i n i m u m and m a x i m u m pressure thresholds b e yond which the autom a t i o n system will open or close the c o rresponding remote contr o l l e d valve.

Of course, 'the automation of the entire system and of each individual item of eguipment can be overridden.

Users' remarks:

From a purely technical point of view, a utomation of the

K l uang oil mill is considered to be a total success. System

reliability is excellent and real time technical m o n i t o r i n g of the mill has made it possible to improve d aily m a n a g e m e n t of the production unit.

The daily p roduction reports are p a r t i c u l a r l y comprehensive and mill M anagement has a log available, which is all the more

useful in that it is available on a daily basis. In addition,

equipment main t e n a n c e is greatly simplified, since the system records each o p e r ating fault.

As regards overall mill performance - improved mill i n g

capacity, fewer losses - we were unable to make any

(7)

significant comparisons. However, although the people we spoke to confirmed that operation of the mill in general and

of the boiler room in parti c u l a r was more regular, they

acknowledged that the improvements in perf o r m a n c e were only m a r g i n a l .

To conclude the purely technical aspects, the only problems encountered involved sensor reliability in d usty and greasy s u r r o u n d i n g s .

From an economic point of view, the pro j e c t promoters

acknowledge that amortization of investment has been less

rapid than expected. This is m o s t l y due to:

- a smaller increase in the cost of m a n p o w e r than that e xpected when the decision was taken to invest

- a smaller reduction than origi n a l l y expected in the number

of wo r k posts; in fact, although workers are theoretically

superfluous, certain people have been kept on as security

staff. Furthermore, system installation and m a i ntenance

reguired the recruitment of highly g u a lified staff to run the control centre.

To conclude, Mr. Peter Yee a c k n o wledged that the cost-

effectiveness of this investment was m a rginal and that such a project p r obably w ould not have seen the light under current economic c o n d i t i o n s .

(8)

THE SOCFIN MALAYSIA GROUP: IDENTIFIED USER

The rundown of the SOCFIN Mal a y s i a Group was given by Jean

Michel Mougins, the Secretary General. The activities of the

Group, which is of French origin, p r i m a r i l y concentrate on

rubber and oil palm. Since it was founded, its results have

always been positive, even over recent years in an

unfa v o u r a b l e economic climate.

Jean Michel Mougins pointed out that, in the past, SOCFIN had always e n d eavoured to remain in the forefront of raw material p r o c e s s i n g technology, which is w h y the G r o u p is p o t e n t i a l l y i nter e s t e d in a utomating its p a l m oil mills.

G e n e r a l l y speaking, SOCFIN looks to obtain a return on its

i nvestments within 3 years. However, J.M. Mougins felt that a

return on investments after 5 years would be a cceptable in the case of the automation project, given its innovative nature.

SOCFIN has 3 oil pa l m complexes:

- Minyak, w i t h a capacity o f , 25 to 30 tonnes of bunc h e s / h o u r - Johore Labis, w i t h a capacity of 50 to 60 t o n nes/hour

- Lima Bias, w i t h a capacity of 25 to 30 t o n nes/hour

The first two oil mills were visited and we were able to obtain all the technical and economic data required from SOCFIN services.

M i n y a k Estate

This oil mill uses the standard process. Its m a x i m u m capacity is 30 t FFB/hr, with a practical capacity of 25 t FFB/hr.

- Bunch reception

Consists of 12 u n l oading hoppers, with a total capacity of

120 tonnes of bunches. There are forty-four 2.5-tonne

sterilization cages. Two workers are e m ployed in bunch

r e c e p t i o n .

- Sterilization

The mill was o riginally eguipped with two 6-cage sterilizers,

which were replaced by two 9-cage units in 1991, with

automation of the sterilization cycle. Three workers supervise sterilization.

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- Stripping

The double stripping system installed did not result in the improvements expected, so it was not extended to the Group's other oil mills.

One worker supervises stripping and another inspects empty bunches to check that they have been p roperly stripped.

- Diqester-presses

3 W E C K E R P9 type digester-press units, with a capacity of 10 t FFB/hr, have been installed.

One work e r is in charge of loading the digesters and another supervises press operation.

- Kernel recovery station

Comprising:

- two 36 tonne nut silos - two nut crackers

- a conventional dust removal installation - a clay-bath separator

- two kernel silos, with a capacity of 12 tonnes each

Storage is in bulk in the silos, so lorries can be gravity loaded.

Two workers are employed in this section. t

- Clarification

This section is conventional with:

- a crude oil sieve

- a continuous primary settling tank - a sludge tank and a sludge pit

- an oil tank and a purifier centrifuge

- a v a c u u m âryer feeding a 500-tonne storage tank

One work e r supervises the levels in the primary settling tank and in the different tanks on the upper catwalk, and another supervises the operation of eguipment at ground level, i.e. p r i m arily the centrifuges.

- Main Boiler Room

two FRASER boilers with a capacity of 12 tonnes/hr,

op e r a t i n g at 20 bar with superheating to 260°C.

- two turboalternators, 400 kW three-phase, 50 Hz at 420 V.

a steam vessel, at 3 bar, fed by the t u rboalternator

e x h a u s t s .

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There are two workers in the b o iler room, a b o i l e r m a n and his assistant, along with an operator supervising the e l e c t r i c i t y g e n e r a t o r s .

The boilers are fitted with a system for dust removal from the smoke emitted and the mill has no empty b unch incinerator.

- JOHORE LABIS

The Johore Labis mill is very similar to the M i n y a k mill as far as the process is concerned.

Its 50 to 60 t FFB/hr capacity is a chieved by d o u b l i n g the

i nstallations found at the M i n y a k mill, apart from a few

e x c e p t i o n s .

- Sterilization

Five 6-cage sterilizers with a capacity of 2.5 tonnes are b e i n g r e placed with three 12-cage sterilizers. The cycle will be contr o l l e d automatically.

- Central Boiler R o o m :

Comprising:

- two F R A S E R boilers with a capacity of 15 t/hr

- a BAB C O C K VICKERS boiler with a capacity of 20 t/hr o p e r a t i n g at 25 bar, superheated to 280°C

- two 500 kW turboalternators - two 352 kW turboalternators.

As regards produ c t i o n staff, Mr. Palasanthiran, the Mill

Manager, informed us that staff numbers were c u r rently too high and th’e aim was to reduce numbers to 17 per shift, as at Minyak, where Mr. Palasanthiran was Mana g e r before.

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ECONOMIC AND T E C H N ICO-ECONOMIC DATA

STAFF COSTS

The following costs were given to us at M i n y a k for u n s k i l l e d p e r s o n n e l :

Salary: $15.60/day over 300 days 4,680

W ater : $10/month 120

Medical costs: $20/month 240

Electricity: paid by employee ($8/month)

Housing maintenance 50

Housing amortization: $12,000 over 10 years, i.e. 1,200

Annual total 6,290

We shall therefore work on the basis of an annual cost of M$ 6,500.

SOCFIN PRODUCTION COSTS

We were informed of palm oil p roduction costs at SOCFIN. For

reasons of confidentiality, we shall not indicate these costs

in detail. They are more or less the same for the Group's

three agro-industrial complexes.

We shall m e rely mention m i l l i n g costs, which b r e a k down as follows :

- Direct production costs 4.71

- Eguipment m a i ntenance 5.85

- B u ilding m a i ntenance 0.42

Total M $ /tonne FFB 10.98

Spare parts' for the presses account for around 1/3 of the eguipment m a i ntenance budget and the annual m a i n t e n a n c e costs for the boilers and turboalternators amount to M$ 35,000 per year on average at the Miny a k Estate.

PRODUC T I O N OUTPUT

At the Group's three mills, the extraction yield, e x p r essed as the oil produced over the potential oil contained in the bunches varies from 92 to 93%, which is excellent.

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ES T I M A T E D COST OF PA L M O I L M I L L A U T O M A T I O N

We e s t i mated the cost of automa t i n g the Johore Labis mill, wi t h a capacity of 50 to 60 t FFB/hr, on the basis of 200 m o n i t o r i n g and remote control points for the two p r o d u c t i o n

l i n e s .

The system w ould be installed jointly by:

- SPEICHIM (France) for:

* d efinition of automatic devices * d efinition of sensors

* d efinition of control devices * supply of control devices

* supply of a fuel storage system, which is essential for gua r a n t e e i n g regular boiler o p e r ation and which does not exist at the mills visited.

* supervision of installation w o r k and start-up of e q u i p ­ ment .

- SISIR (Singapore) for

* supply of sensors

* supply of control interfaces

* supply of a complete central p r o c e s s i n g unit + prin t e r * d e v elopment of remote control software for the i n s t a l ­

lations, b ased on recommendations made by SPEICHIM * installation w i ring

* start-up and final adjustments on the c o m p uterized aspects of the system.

A local company w o u l d be called in to install the control devices and,the fuel storage system.

The corresp o n d i n g cost estimates for these services are as follows :

- SPEICHIM FFrs 3,800,000 i.e. US$ 690,000

- SISIR S$ 380,000, i.e. US$ 230,000

- Local installation firm estimated at US$ 30,000

Total US$ 950,000

The estimates of costs supplied by SPEICHIM seem to be high and w o u l d p r obably be revised downward once the Company has

studied the project in more detail. As a precaution, however,

we shall keep to the figure of US$ 950,000, i.e.

M$ 2.5 million.

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COMMENTS AND CONCLUSIONS

Taking an expected investment of M$ 2.5 million, and a return on investment limited to 5 years, automation of the Johore Labis oil mill w ould need to lead to reductions in produc t i o n costs amounting to M$ 500,000 per year at this site.

This target seems to be totally unrealistic, given the

excellent results already obtained by oil mills in the Group.

In fact, the direct advantages that should be e x pected from produc t i o n process automation are as follows:

- Improvement of mill efficiency

The Group's mills have an extraction y ield ranging from 92 to

93%. This result is already excellent and it does not seem

that it could be substantially improved by i nstalling an automatic system.

The fact that no n o t e w o r t h y yield improvements were seen at PAMOL after installation of an automatic system m e r e l y serves to bear out our opinion.

- Reduction in equipment maintenance costs

A u t o m a t i o n should result in more regular eguipment operation, e specially the boilers. C o n s e g u e n t l y , lower m a i n t e n a n c e costs can be expected.

Ex t r a p o l a t i n g maintenance costs at M i n y a k (M$ 35,000/yr for the boilers and turboalternators) to those at Johore Labis, which we consider at first glance to be double those at Minyak, a póssible saving of M$ 35,000 could be made per year.

- Increase in production capacity

In theory, automation results in an improvement in the mill's true production capacity, for the following two reasons:

* improved regularity of throughput, hence a reduction in

m i l l i n g downtime.

* easier preventive maintenance of eguipment and reduction in downtime due to breakdowns.

It is difficult to put a figure on this technical advantage, but the Johore Labis mill w ould seem to have a sufficient m i l l i n g capacity to process all the bunches d e l i vered to it, even in peak p e r i o d s .

(14)

- Reduction in Staff costs

We noted that staff reductions at P AMOL had been less than expected.

Moreover, some of the oil mills in the SOCFIN Group are

currently cutting, or have already cut staff numbers to the

strict minimum, as at Johore Labis, i.e. 17

wo r k e r s / s h i f t / p r o d u c t i o n line (There are currently 51 wo r k e r s / s h i f t on the two p roduction lines at Johore Labis).

No staff cuts can be made at bunch r e c eption or on the sterilizers, where h andling operations will remain essential.

Staff cuts can be considered for extraction, clarifi c a t i o n and in the b o iler room.

Co m p a r e d to the opt i m u m number of staff (17/shift/production line), we shall put forward the hypothesis of a reduction to

12 workers. We shall therefore be able to make 20 staff cuts,

on average, for the two production lines w o r k i n g on two shifts t hrou g h o u t the year.

As the annual cost of a w o rker is M$ 6,500, the potential

savings w o u l d consequently amount to M$ 130,000/year. To be

more precise, only direct m a npower costs should be considered,

e x c l u d i n g amortization costs for e xisting housing. Under

these conditions, the savings made w o u l d drop to M$

1 0 6 , 000/year.

By c u m u l a t i n g the savings made in the best case, we do not reach M$ 200,000 per year, w h i c h means a return on investment of almost 13 years.

We can ob v i o u s l y only conclude that it is impossible to

r e c ommend such an investment to the SOCFIN Group.

A D D E N D U M

A u t o m a t i o n of the oil mills in the SOCFIN G roup w o u l d not be

cost-effective under current economic conditions, p r i marily

because the performance of the Group's industrial facilities is excellent.

However, the automation project could find more p r o mising

applications in oil mills in Indonesia, where staff numbers are much higher, though man p o w e r is currently cheaper, and, more to the point, where the performance achieved is generally

less impressive.

Take the example of an oil mill p r o c e s s i n g 150,000 tonnes FFB per year with a m i l l i n g yield of 90%:

On the basis of a mean extraction rate of 20%, p a l m oil

produ c t i o n would be 30,000 tonnes per year with a 90% m i l l i n g

yield. With 92.5%, production would increase to 30,830

tonnes, i.e. an extra 830 tonnes.

(15)

Taking a very cautious value of US$ 250 per tonne of oil at

the mill gate, the added value w o u l d be US$ 207,500, i.e.

M$ 565,000.

Under these conditions, a return on investment of around 4 years would be feasible, w hich is p e r fectly acceptable.

(16)

SPEICHIM

I RHO

avenue du Val de Montferrand

BP 5035

34032 M O N T P E L L I E R CEDEX

BYO 0 3 0 / J A E / L . 120098 Yr. R e f . : DT 194/91

Cergy, 8th Jan u a r y 1992

For the attention of Mr. Jean Marc NOEL

Re: P a l m Oil Mill automation

Dear Sirs

Please find e n closed our cost estimate for c a rrying out a study and supplying eguipment for the a utomation project.

Our services w o u l d include:

- defini t i o n of automatic devices - d e f i n i t i o n of sensors

- defini t i o n of control devices - supply of control devices

- supply of a fuel storage system (essential for g u a r a n t e e i n g regular o p e r ation of the boilers)

- supervision of installation and start-up of the above e g u i p ­ ment .

We estimate the overall cost for the above at:

FFrs 3,800,000 (THREE M I L L I O N E I G H T H U N D R E D THO U S A N D F R ENCH F R A N C S ).

r

This figure does not include assembly and start-up, which could be entrusted to a local company.

A dditional information on the existing installation, in

parti c u l a r layout drawings and diagrams, w o u l d be n e c essary to proceed with the study.

We hope this information will enable the feasibility study to be completed.

Yours faithfully

C. BLAYO

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Electronics ¿ Computar Applicationi Division

FACSIMILE TRANSMITTAL SHEET

Date

No. of pages

Fax Ref No.

Message To

Organization

Fax No

Message From

10

October

1991 1 (Including this page)

MOF535

Mr Jean-Marc Noel

Institut De Recherche

(33) 67615792

Cheong Soo Chin

S I K O A P O N E i m e t i t u t b o r

S T A N D A R D * A N B I N D U S T R I A L « E 8 B A N C M

(If the following message Is not well received, please notify me at telephone no. 779-5233) Dear Mr Noe<

Thank you for your fax dated 8 Oct 91.

It is difficult to give you an estimate especially for projects In a foreign country because the information Is so little. I will try m y best.

The sensors you mentioned cost between Singapore Dollars $200 to $400. For budgetary estimates I use the figure of $400. Normally we use brands Ilka Omron, Ashcroft, MAMO, Yokogawa etc.

The rough estimates are therefore as follows:

a. 200 numbers of sensors 200 x 400 $ 80,000 b. Wiring costs 100 x 400 $ 4 0 ,0 0 0 c. 5 numbers of control panels 5 x 12,000 $ 6 0 ,0 0 0 d. 336 PC and printer $ 20,000 e. Central software and application develooment $100,000 f. Transportation, training, testing etc. L8QJ20Q Total J ÎM .W 9 The above estimates do not Include prices for valves and motors.

Please advise If Specichlm or you want SISIR to look for a palm oil plantation willing to go for automation.

Best regards.

(18)
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T A N K V IN N O W IN G OE V IC E

VVvTvVv

NUT SjlLO ( A w c J m T o o s ) KERNEL S L 0 (4x12 M Tons) LORRY FOR DESPATCH S lu d g e 8 0 - 9 0 7 . w a te r 8 - 1 2 * / . o il A - 7 * / . rvo.s ! PARE OIL TANK TANK Í LUOGE TANK E E 5Z Z 5Z S S —1» KERNEL CONVEYOR 0 NUT ES2ZS CONVEYOR LORRY RACKED 1 i m a m SLUDGE CENTRIFUGE ( 6 x 3 6 0 0 l/hrfr Kernels ( 5 -6 * /. on F.F.B) ■< 7 * /. m o is tu r e < 6 */. d i r t PUMP PURIFIER ( A x 5 0 0 0 L i t / h r ) TO EFFLUENT PONDS ■UDGE PIT PUMP ( 3 0 -A O */, on F.F.B) Sludge w aste RELAY

POND

SOCFIN Co. BERHAD

92 “ 9 5 V . w a ter a s - v s •/. o il * - S •/.aa«

1. PRODUCTS ARE CRUDE PALM OIL PALM KEHN& > BUNCH ASH

2.loo m t o n s r.r.a g i v e s *20 m t o n s on. is.5 M TONS KERNEL ANO tos M TOWS BUNCH ASH 3. MIU. SELF SUFFICIENT IN FUEL ANO POWER

JOHORE LABIS PALM OIL MILL SCHEMATIC FLOW CHART

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