MARKET DEVELOPMENT
03-11-2004
GOLDEN HOPE IN TALKS WITH WEST ASIA GROUP TO FORM
KUALA LUMPUR, Nov 1 (Bernama) -- Golden Hope Plantations Bhd, which isin discussion with a big group in West Asia to form a partnership topenetrate the palm oil market in the region, expects it to be concluded asearly as before the end of the year.The partnership could be a joint venture or other forms of a win-winarrangement, said group chief executive, Datuk Sabri Ahmad.Countries such as Saudi Arabia, Jordan and Iran have large markets andconsume some one million tonnes of palm oil annually, he said at a pressconference after the completion ceremony of the RM2.6 billionrationalisation exercise between Golden Hope and Island & Peninsular Bhdhere today.Golden Hope is looking for opportunities overseas and apart from WestAsia, it is also eyeing Central Eastern European countries such as Ukraineand Russia and new members of the Europen Union such as Poland.Sabri said that the group already has presence in Holland, SouthAfrica, Vietnam, Bangladesh and China.He said that Golden Hope will continue to focus on its core competencyin the plantation sector, while at the same time moving further downsteam."Therefore, if there is a cyclical change in crude palm oil's prices,the group will be cushioned by the additional earnings on downstreamactivities. The company wants to go beyond just being a plantationcompany," he added.Sabri also stressed that the group will be spending money for brandingto raise the brand equity of its products, and said that comments bycertain parties that Golden Hope has no direct management of its foreignassets were inaccurate.The rationalisation exercise between Golden Hope and Island &Peninsular involved asset swapping, which saw Golden Hope disposing of 99percent of Golden Hope Properties Sdn Bhd, 60 percent of Golden HopeDevelopment Sdn Bhd and 100 percent of Golden Hope Properties (Johor) SdnBhd to Island & Peninsular.Island & Peninsular in turn, disposed of 99.6 percent of itsplantationarm, Austral Enterprsie Bhd, to Golden Hope.Earlier in his speech, Sabri said that the exercise has increasedGolden Hope's land bank to 188,093 hectares from 132,826 hectares.The total oil palm planted area will surge to 172,000 hectares from120,000 hectares and fresh fruit bunches's production is set to increaseto2.87 million tonnes from two million tonnes now, he said.Sabri said that crude palm oil production is envisaged to reach620,000tonnes. -- BERNAMA
