KP Phnom Penh, June 04, 2026 --

First ever cashew nut shell liquid (CNSL) processing projects are scheduled to commence by the end of 2026, by three companies preparing investments, in a move to expand value-added production in the country's growing cashew industry.

The projects are expected to help Cambodia extract greater value from cashew byproducts while strengthening the domestic processing sector, according to the Cashew Nut Association of Cambodia (CAC).

“There are three companies planning to produce CNSL. One is a Japanese company, TPJ, while the other two are Vietnamese firms that have requested not to be named at this stage,” said Mr. Silot Uon, Chairman of the CAC.

Mr. Silot Uon said the planned investments include one medium-sized CNSL extraction plant and two smaller facilities.

The smaller plants are expected to use Japanese extraction technology capable of processing CNSL through a two-stage process, while the larger facility is anticipated to employ Vietnamese technology requiring a five-stage extraction process.

CNSL is a natural substance found in cashew shells and is used in a range of industrial applications, including resins, coatings, friction materials and chemical products. Industry stakeholders view its commercialisation as an opportunity to generate additional revenue from materials that have traditionally received limited economic value.

The planned projects come as Cambodia's cashew sector increasingly adopts automated processing systems designed to improve efficiency and workplace safety.

Under fully mechanised operations, raw cashew nuts pass through enclosed steaming chambers and automated shelling equipment, allowing shells to be cracked and separated without direct human contact. This reduces workers' exposure to CNSL, which can cause skin irritation and other occupational health risks.

“We are seeing automation not only improve workplace safety but also enhance processing efficiency,” Mr. Silot Uon said.

Industry representatives believe the CNSL investments could strengthen Cambodia's cashew value chain, improve the sector's competitiveness and support broader efforts to expand domestic agro-processing capacity rather than relying primarily on exports of raw agricultural products.

By Sum Kosal