MARKET DEVELOPMENT
Oriental Holdings Eyes Plantation Landbank Expansion In Indonesia
Oriental Holdings Eyes Plantation Landbank Expansion In Indonesia
07/06/2014 (Bernama) - Diversified conglomerate Oriental Holdings Bhd plans to increase its oil palm plantation landbank especially in Indonesia, says group chief financial officer Adrian Wong Tet Look.
He said the plantation segment would remain the main revenue driver for the group in the financial year ending Dec 31, 2014 amid likely higher prices of crude palm oil (CPO), palm kernel and fresh fruit bunches (FFB) due to tighter supplies and rising biodiesel demand from Indonesia and Malaysia.
"The group plans to expand its hectarage especially in Bangka Island and South Sumatra, Indonesia. Currently the group has 91,000 hectares of plantation land, of which 5,000 hectares are in Malaysia," he told Bernama after Oriental Holdings' Annual General Meeting here Friday.
Wong said there is room for Oriental Holdings to expand in Indonesia despite an Indonesian rule limiting plantation areas to 100,000 hectares, adding that the group currently has 86,000 hectares.
On the automotive segment, Wong said the group plans to streamline its spare parts manufacturing in Kedah and also get China's Chery cars and Chang An mini trucks to be reassembled at its assembly plant due to lower volume.
He said Oriental Holdings' property segment would see positive performance this year with the kick-off next month of a 202.7-hectare mixed development in Melaka.
Oriental Holdings' sub-subsidiary Ultra Green Sdn Bhd has been granted a concession by the Melaka state government to reclaim for development purposes 455.3 hectares of land from the foreshore area off the Klebang coast.
Furthermore, Wong said the group's medical centre in Melaka is expected to commence operations by year-end, and would catalyse the expansion of its healthcare division.
He said the plantation segment would remain the main revenue driver for the group in the financial year ending Dec 31, 2014 amid likely higher prices of crude palm oil (CPO), palm kernel and fresh fruit bunches (FFB) due to tighter supplies and rising biodiesel demand from Indonesia and Malaysia.
"The group plans to expand its hectarage especially in Bangka Island and South Sumatra, Indonesia. Currently the group has 91,000 hectares of plantation land, of which 5,000 hectares are in Malaysia," he told Bernama after Oriental Holdings' Annual General Meeting here Friday.
Wong said there is room for Oriental Holdings to expand in Indonesia despite an Indonesian rule limiting plantation areas to 100,000 hectares, adding that the group currently has 86,000 hectares.
On the automotive segment, Wong said the group plans to streamline its spare parts manufacturing in Kedah and also get China's Chery cars and Chang An mini trucks to be reassembled at its assembly plant due to lower volume.
He said Oriental Holdings' property segment would see positive performance this year with the kick-off next month of a 202.7-hectare mixed development in Melaka.
Oriental Holdings' sub-subsidiary Ultra Green Sdn Bhd has been granted a concession by the Melaka state government to reclaim for development purposes 455.3 hectares of land from the foreshore area off the Klebang coast.
Furthermore, Wong said the group's medical centre in Melaka is expected to commence operations by year-end, and would catalyse the expansion of its healthcare division.