Chinese oil and chemical giant invests in Indonesia to boost business growth

Zanyu Technology, as a domestic oil chemical leader, has a production capacity of 1.08 million tons/year, and its Dukuda base in Indonesia has significant advantages, which is the main source of performance for the company.Indonesia levies high export tariffs on gross palm oil, but not on fatty acids and other finely processed products. Dukuda base purchases palm oil locally and exports it as finely processed products, obtaining an obvious tariff cost advantage. Indonesia's gross palm oil export tariffs are ad valorem, the higher the price of palm oil, the higher the tariff, the base tariff cost advantage is more obvious, the higher the profit per ton of the product, the company's historical performance is positively correlated with the price of palm oil. Indonesia's palm plantation area growth is slowing down, tree aging to downward yield, Indonesia and global palm oil production is expected to remain stable in the future. Food consumption is the largest downstream, India, Southeast Asia population growth to support demand; chemical demand rigidity, biodiesel demand continues to create new increments. Stable supply, demand growth, optimistic about palm oil price pivot gradually upward, driven by the Ducuda base of single-ton earnings rise. The company promotes Ducuda renovation and expansion project, relying on the existing part of the infrastructure, the investment amount of 248 million yuan. As of June 2025, some of the project's units entered the trial production stage, and the overall commissioning will contribute to a larger incremental performance, driving the company into a new stage of growth.