Process

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).