LG Corp. completes palm oil plant in Indonesia

LG Corp. said Friday that it has completed a palm oil plant in the western part of Kalimantan Island, Indonesia.

The plant will annually produce about 40,000 tons of palm oil, LG said, adding it plans to expand the plant's annual production capacity to 80,000 tons.

Palm oil is used as a raw material, for biodiesel, and in cosmetics. Biodiesel is a non-petroleum-based diesel fuel made using vegetable oil or animal fat, which can be used in unmodified diesel-engine vehicles.

The South Korean trading company bought a 160-square-kilometer palm farm in the island in December 2009 and plans to buy other palm farms in the area. (Yonhap)