Minola eyes bigger share of industrial oil market

Minola Refining Corp. (MRC), which is 60 percent owned by the government-sequestered Coconut Industry Investment Fund (CIIF) Co. and 40 percent by Japan’s Mitsubishi Corp., is setting its sight on capturing a bigger share of the industrial oil market.

In a press conference, Danilo M. Coronacion, chairman and president of MRC, explained that the second refinery of MRC is intended to boost the oil firm’s production capacity from 300 metric tons (MT) to 450 MT.

Most of MRC’s production or about 70 percent is for export and only 30 percent is for the domestic market.

The bulk of the industry’s production, Coronacion said, is crude oil or feedstock which is exported as raw material for other oil firms to further process.

The second type is known as refined and bleached oil for industrial use. It comes in the form of oleo chemicals such as coco fatty acids, coco alcohol, ethyl ester, glycerine and even biodiesel.

The third type is refined, bleached and deodorized oil which is the edible oil.

The market for edible oil, Coronacion said, is already crowded.

On the other hand, the growth trend, Coronacion disclosed, is towards industrial oil which commands a higher premium of $20 to $30 more per metric ton compared to crude oil.

In fact, in the region, Malaysia, Indonesia, China, the Philippines and India are all set to raise their capacity by about 700,000 MT specifically to address the demand for industrial oil.

Thus, MRC is hoping to cash in on the trend.

MRC was estab-lished in 1999 and started commercial operation of its first refinery in 2000.

MRC’s first refine-ry produced several types and grades of refined vegetable oil using various feedstock such as CNO, palm and other vegetable oils.

MRC has put up a second refinery which it inaugurated this month. The second refinery cost P182 million, while the first one cost P160 million.

The second refinery is a fully-automated, 150 ton multi-seed physical refining plant.