MARKET DEVELOPMENT
Sime Darby Plans Up To 100,000 Hectares Of Oil Palm In Liberia
Sime Darby Plans Up To 100,000 Hectares Of Oil Palm In Liberia
10/06/2014 (Bernama) - Multinational Conglomerate, Sime Darby Bhd, is planning to plant up to 100,000 hectares of oil palm in Liberia within the next 10 years.
This is under its 63-year concession with the West African country's government to develop 220,000 hectares of land.
Sime Darby has so far planted about 10,035 hectares with oil palm in Liberia, involving a total investment of between RM100 million and RM200 million, inclusive of upfront infrastructure since signing the agreement in 2009.
The first planting began in 2010.
Group Strategy and Business Development Executive Vice President Alan Hamzah Sendut said the plan is to develop 10,000 hectares of oil palm annually to ensure the sustainability of the company's palm oil business.
"That's about the rate we want to spend. Because by the time we are into the seventh year, the first year's planting would be already contributing cash," he added.
He was speaking to reporters on the sidelines of the Invest Malaysia 2014 here today.
Alan said the investment for future plantings would be much cheaper as it would not involve upfront infrastructure.
Meanwhile, he said the remaining 110,000 hectares of land in Liberia will be utilised as rubber plantations with 107 hectares having already been developed with the commodity.
Sime Darby has a combined total landbank of 864,187 hectares in three countries, namely Malaysia, Indonesia and Liberia.
With its landbank in Malaysia and Indonesia nearing full utilisation, Alan said it is crucial for the company to look for opportunities beyond the region, given that its plantation business is the biggest earnings contributor.
"Besides Liberia, we are also eyeing the Ivory Coast as our next potential investment for oil palm plantations in West Africa," he added.
This is under its 63-year concession with the West African country's government to develop 220,000 hectares of land.
Sime Darby has so far planted about 10,035 hectares with oil palm in Liberia, involving a total investment of between RM100 million and RM200 million, inclusive of upfront infrastructure since signing the agreement in 2009.
The first planting began in 2010.
Group Strategy and Business Development Executive Vice President Alan Hamzah Sendut said the plan is to develop 10,000 hectares of oil palm annually to ensure the sustainability of the company's palm oil business.
"That's about the rate we want to spend. Because by the time we are into the seventh year, the first year's planting would be already contributing cash," he added.
He was speaking to reporters on the sidelines of the Invest Malaysia 2014 here today.
Alan said the investment for future plantings would be much cheaper as it would not involve upfront infrastructure.
Meanwhile, he said the remaining 110,000 hectares of land in Liberia will be utilised as rubber plantations with 107 hectares having already been developed with the commodity.
Sime Darby has a combined total landbank of 864,187 hectares in three countries, namely Malaysia, Indonesia and Liberia.
With its landbank in Malaysia and Indonesia nearing full utilisation, Alan said it is crucial for the company to look for opportunities beyond the region, given that its plantation business is the biggest earnings contributor.
"Besides Liberia, we are also eyeing the Ivory Coast as our next potential investment for oil palm plantations in West Africa," he added.