2/12/05 (The Star) - THE Felda group plans to set up palm biodiesel plants in Malaysia as part of its effort to become one of the world's largest producers of palm biodiesel.

Group chairman Tan Sri Dr Mohd Yusof Noor said: “A special task force is currently studying the feasibility of the palm biodiesel project proposal and the recommendations will be submitted to the Felda board and the Government by the end of this month.”

He said the palm biodiesel project, which was one of the priority areas for the Felda group under its five-year major business plan (2005-2009), would further strengthen the group's status as the world's single largest integrated palm oil-based player.

Yusof was speaking to reporters in Kuala Lumpur after welcoming Datuk Mohd Bakke Salleh, who started his first day at work as Felda Holdings Bhd group managing director yesterday.

Bakke, who was Tabung Haji chief executive officer, will be on a three-year contract to manage Felda group's 27 subsidiaries, 12 joint-venture companies and 10 associate companies, both locally and abroad.

“The capital expenditure, exact location and the size of our biodiesel plants will depend on the outcome of the recommendations made to the relevant authorities,” Yusof said.

He added that most of the biodiesel plants owned by Malaysian private plantation groups were normally located near ports.

Golden Hope Plantations Bhd recently announced the setting up of three biodiesel plants – two in Banting, Selangor, and one in Rotterdam, The Netherlands, while IOI Corp Bhd is believed planning to set up its first biodiesel plant either in Pasir Gudang, Johor, or in Rotterdam.

On the financial performance, Yusof said the Felda group expected to perform better this year.

 

Datuk Mohd Bakke Salleh

For the financial year ending Dec 31, the Felda group has forecast a pre-tax profit of about RM1.2bil against RM1bil last year, while turnover is set to increase to RM8bil from RM7bil in 2004.

Earlier, Bakke said he looked forward to working with the Felda group's management team and employees to establish a performance-based work culture, which would be more commercially driven and customer-focused.

“For now, just let me sink my teeth into the job. It will be better to finish the first 100 days. Perhaps, after that, I'd be able to share the approach and business direction (for Felda) going forward,” he added.