Kulim to expand land-bank

PETALING JAYA: Kulim (M) Bhd says its re-entry into Indonesia last October is expected to expand its oil palm land-bank by some 40,000ha in central Kalimantan and also accelerate its new planting programme.

Kulim chairman Datuk Kamaruzzaman Abu Kassim said that the target planting for 2014 was 500ha. The first 500ha of land clearing for a new planting programme, along with the setting up of an 80ha oil palm nursery, will commence in the third quarter of this year.

Following that, the new planting programme will facilitate between 5,000 and 7,000ha per year.

The groups move to secure additional land-bank via its 74% stake in PT Wisesa Inspirasi Nusantara is key to growth for its plantation segment, he said after Kulims AGM and EGM yesterday.

As we expand our oil palm land-bank, we remain resolutely focused on managing our cost of production to maximise margins and profitability, while at the same time abiding by the principles of sustainability, Kamaruzzaman said.

He explained that owing to limited land in Malaysia, Kulim needed to diversify its geographical presence into other locations. Currently, Papua New Guinea and the Solomon Islands remain the key driver for the group, contributing 90% to revenue in 2013.

Kulims direct land-bank in Malaysia exceeds 50,000ha.

Meanwhile, managing director Ahamad Mohamad said that Kulim was also looking at initiatives to improve the groups financial and operational performance that would enable it to grow on a well-diversified basis.

He said Kulim would be entering a new dimension in its ventures, as the group, together with Indonesian business partner PT Graha Sumber Berkah, would explore strategies to take advantage of the Indonesian governments decision to liberalise the oil and gas (O&G) sector by offering blocks to foreign investors.

Kulim is already involved in the support sector of the O&G industry in Malaysia via E A Technique (M) Bhd (EATech) and Danamin (M) Sdn Bhd.

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Kulim to expand land-bank