Company Briefs: Singapore Refining Company

Singapore Refining Company

Singapore Refining Company (SRC), the smallest of Singapore's three refineries, has completed its new petrol clean fuels facility and cogeneration plant on Jurong Island costing US$500 million (S$656 million).

The project, which received final investment decision in 2014, has resulted in greater energy efficiency, higher-quality products and reduced emission of sulphur oxides, said the firm. By generating its own steam and electricity more efficiently, it also indirectly reduces carbon dioxide emissions by 190,000 tonnes a year. The two-train cogeneration plant has a capacity of 72MW, which exceeds the refinery's power requirements. This eliminates electricity expenses - one of its biggest operating costs - and provides room for future growth, said SRC.

Indofood Agri Resources

Indofood Agri Resources (IndoAgri) has invested 23.6 million Brazilian real (S$9.6 million) to take a 50 per cent stake in a joint venture to acquire a sugar mill business in Brazil.

IndoAgri's partner, JF Investimentos, contributed an equal amount to the initial capital of the joint venture, Canapolis. Last December, Canapolis acquired a sugar mill in Minas Gerais, Brazil, with an annual cane crushing capacity of 1.8 million tonnes and 6,048ha of land through a court auction as part of the bankruptcy of the asset's previous owner. The acquisition price is about 137.8 million real, to be paid in four instalments.

Operations at the mill are expected to begin in 2020. Capital expenditures for the setting up will be funded through bank borrowings.

OUE Lippo Healthcare

Japanese conglomerate Itochu will add two nominees to the board of OUE Lippo Healthcare (OUELH) after completing its acquisition of 562.5 million new shares.

With the completion of this placement, Itochu becomes a strategic shareholder of OUELH with a 25.3 per cent stake. Singapore-listed OUE will continue to be the largest shareholder with a majority equity stake of 64.4 per cent.

The private placement priced the new shares in OUELH at 14 cents apiece.

Mr Johji Sato, a director of Sumida Corp and former executive senior director (global Japanese business) at PricewaterhouseCoopers, joined OUELH's board as an independent director last Thursday.

Mr Masato Mohri, executive vice-president and chief strategy officer of Itochu Singapore as well as the chief strategy officer for Asia and Oceania Bloc of Itochu Corp, will take a board seat as a non-independent and non-executive director after he clears regulatory approvals.

A version of this article appeared in the print edition of The Straits Times on February 20, 2018, with the headline 'Company Briefs'. Subscribe