Instead of buying Wilmar>$6,buying first resources in similar biz and Wilmar is First Resources' top clients.

Mr Fangiono said First Resources, whose key crude palm oil customers include Singapore's top commodities firm Wilmar, will fund its expansion mainly through existing cash, at US$185 million as of end-March, and excess cash flow from sales.

First Resource's debt- to-equity ratio is at 5.87 per cent, providing room for debt financing if needed, he said, adding that the firm has no intention to sell new shares to investors.

First Resources' new biodiesel plant, initially slated for launch in the second quarter of this year, will instead start production by the year's end due to a delay in obtaining a permit that allows tax breaks for importing capital equipment, Mr Fangiono said.

These permits have since been approved and the plant will be able to produce 250,000 tonnes of biodiesel a year, he said, adding that the company will ramp up production when the price of biodiesel is above that of crude palm oil.
'The strategy for us is to max out the capacity that we have when it's profitable, but to revert to selling crude palm oil when it's not.'