MARKET DEVELOPMENT
Jaya Tiasa To Spend RM165 Million On 2 New Palm Oil Mills
Jaya Tiasa To Spend RM165 Million On 2 New Palm Oil Mills
27/11/2013 (Bernama) - Jaya Tiasa Holdings Bhd, which aims to be Malaysia's leading producer of renewable and sustainable quality oil palm and wood-based products, is in the process of setting up two new palm oil mills in its plantation areas.
Chairman Gen. (Rtd) Tan Sri Abdul Rahman Abdul Hamid said one of the mills is scheduled to be ready in April next year while the other is already in the planning stage.
In his message to shareholders before the company's 53rd annual general meeting for its financial year ended June 30, 2013 here Thursday, he said the group is investing RM165 million on the new mills to meet the expected rapid growth in crop production in the coming years, bringing its total mills to four.
"Jaya Tiasa has a total area of 83,480 hectares for oil palm. The estimated plantable area is 70,900 hectares spread over 10 plantations in the state.
"Since June this year, we have fully planted 62,745 hectares or 89 per cent of which 48,005 hectares have matured," he said.
Abdul Rahman said about 40 per cent of its planted area would enter prime age in two years.
He said the group's fresh fruit bunch (FFB) production increased by 31 per cent to 664,633 metric tonnes this year from the previous year's 508,701 metric tonnes.
For its current financial year, the group registered a revenue of RM1.05 billion, a four per cent increase over the RM1.01 billion in the previous year.
"But lower selling prices together with higher operating costs for oil palm led to a 85 per cent erosion in profit after tax to RM22.3 million from RM146.3 attained previously," he said.
On its logging operations, Abdul Rahman is optimistic the demand for plywood would improve gradually in line with the recovery in its key markets particularly in Japan.
Plywood contributed about 30 per cent to the group's total FY2013 revenue.
He said Tokyo's winning bid to host the 2020 Olympics would certainly have a positive impact on Japan's economy.
"The announced increase in Japan's consumption tax from five per cent currently to eight per cent by 2014 is anticipated to bring forward housing demand.
"This is an encouraging note for the plywood business as it will have a positive effect on the potential plywood demand as well as its selling price," he said.
Abdul Rahman said the group now manages 235,859 hectares of reforested area, an investment for the group's future viability.
He said with higher export quota, export sales are expected to increase in the coming financial year as the market demand for tropical logs would remain robust.
Its log exports accounted for 38 per cent of its revenue.
Jaya Tiasa has one of the largest timber assets among Malaysian listed companies, and accounted for more than 10 per cent of the logs produced in the state last year from its gross concession area of 713,211 hectares.
Chairman Gen. (Rtd) Tan Sri Abdul Rahman Abdul Hamid said one of the mills is scheduled to be ready in April next year while the other is already in the planning stage.
In his message to shareholders before the company's 53rd annual general meeting for its financial year ended June 30, 2013 here Thursday, he said the group is investing RM165 million on the new mills to meet the expected rapid growth in crop production in the coming years, bringing its total mills to four.
"Jaya Tiasa has a total area of 83,480 hectares for oil palm. The estimated plantable area is 70,900 hectares spread over 10 plantations in the state.
"Since June this year, we have fully planted 62,745 hectares or 89 per cent of which 48,005 hectares have matured," he said.
Abdul Rahman said about 40 per cent of its planted area would enter prime age in two years.
He said the group's fresh fruit bunch (FFB) production increased by 31 per cent to 664,633 metric tonnes this year from the previous year's 508,701 metric tonnes.
For its current financial year, the group registered a revenue of RM1.05 billion, a four per cent increase over the RM1.01 billion in the previous year.
"But lower selling prices together with higher operating costs for oil palm led to a 85 per cent erosion in profit after tax to RM22.3 million from RM146.3 attained previously," he said.
On its logging operations, Abdul Rahman is optimistic the demand for plywood would improve gradually in line with the recovery in its key markets particularly in Japan.
Plywood contributed about 30 per cent to the group's total FY2013 revenue.
He said Tokyo's winning bid to host the 2020 Olympics would certainly have a positive impact on Japan's economy.
"The announced increase in Japan's consumption tax from five per cent currently to eight per cent by 2014 is anticipated to bring forward housing demand.
"This is an encouraging note for the plywood business as it will have a positive effect on the potential plywood demand as well as its selling price," he said.
Abdul Rahman said the group now manages 235,859 hectares of reforested area, an investment for the group's future viability.
He said with higher export quota, export sales are expected to increase in the coming financial year as the market demand for tropical logs would remain robust.
Its log exports accounted for 38 per cent of its revenue.
Jaya Tiasa has one of the largest timber assets among Malaysian listed companies, and accounted for more than 10 per cent of the logs produced in the state last year from its gross concession area of 713,211 hectares.