Two of the plants will be in Port Klang and the third in Pasir Gudang, Johor.

The three plants, which would be on a 50:50 joint venture basis with three local partners, are expected to commence operations within the next 12 months.

Yusof said the new partners already possessed the infrastructure and there was no need for construction of new facilities.

He declined, however, to name the three joint venture partners, generally believed to be listed companies.

"We are drafting the agreement to be signed with the joint venture partners," he told reporters after the official opening ceremony of the bi-annual International Palm Oil Congress, better known as PIPOC 2005.

Meanwhile, minister of plantation industries and commodities Datuk Peter Chin Fah Kui said an earlier plan was just to have a pilot plant, but given the higher demand for and interest in biodiesel fuel it was decided to build three plants.

There was a high demand for biodiesel from Europe and Turkey, he said.

Refined, bleached and deodorised palm oils are expected to be used as the raw material at these plants.