26/09/2012 (The Star) - Fima Corp Bhd is looking to purchase more oil palm plantation land in Indonesia to expand its current land of about 19,000ha.

Managing director Roslan Hamid said the company currently had a total planted area of 6,401ha with another 12,000ha to 13,000ha in the same area “still awaiting” approval from the Indonesian authorities before being planted.

Roslan: ‘When we find suitable
land, we will go ahead and buy.’

“There are a lot of issues including environmental issues, we've submitted the relevant details but the approval has been taking so long,” Roslan told reporters after the company AGM here yesterday.

“We are looking for more land, if and when we find suitable land, we will go ahead and buy,” he said, adding that this should be funded by a combination of cash and bank borrowings.

Oil palm plantation is the group's second largest earnings contributor after its production and trading of security and confidential documents division.

Its average oil extraction rate and oil kernel extraction rate are currently 23.84% and 38.16% respectively,

The other contributor is its property management division where it owns the Plaza Damansara building and a factory premise in Bangi.

Based on its latest annual report, the occupancy rate of Fima's Plaza Damansara building stood at 75% while the for the Bangi factory, the occupancy rate was 78%.

For its first quarter ended June 30, Fima made a net profit of RM17.6mil on revenue of RM73mil.