MARKET DEVELOPMENT
'Super Palms' May Debut Next Year
'Super Palms' May Debut Next Year
28/04/2014 (NST) - Plantation giant Sime Darby Bhd expects its genome "super palms" to come on board by next year or 2016.
Sime Darby president Tan Sri Mohd Bakke Salleh said the super palms can produce up to 10 tonnes of crude palm oil (CPO) per hectare, compared with the industry average of four tonnes per hectare.
"If we were to replace our planted areas with the latest planting material, we would be able to more than double our output," he told Business Times after the signing of a memorandum of understanding with United States biotechnology company Verdezyne Inc, here, yesterday, which was witnessed by Prime Minister Datuk Seri Najib Razak and US President Barack Obama.
Five years ago, Sime Darby announced the genome discovery with much fanfare, saying it would see higher yields and produce crops resistant to diseases and salinity, and also drought tolerant.
However, Bakke said there are outstanding areas to improve on before the company can achieve higher yields.
"It is work-in-progress and that is how we are positioning the company."
Currently, its plantations produce between six and eight tonnes of CPO per hectare.
Sime Darby is also getting involved in new activities, such as the tie-up with Verdezyne, which will enable it to expand its downstream activities to include products such as plastic and nylon.
It will take a 30 per cent stake, valued at US$30 million (RM98 million), in the San Diego-based company.
Mohd Bakke said margins are good for products such as CPO, palm kernel oil and oleochemicals, which are used to produce bio acids as feedstock for the nylon or textile industries.
Verdezyne president Bill Radany said the technology has successfully created Nylon 66 fibre, said to be the strongest man-made fibre, which can be used in carpets, textiles, apparel, lubricants and toothbrushes.
"We explored many countries in the region before deciding on Malaysia as the ideal location," he said of its venture into the Asian market.
Its next move is to scale up its commercial plant within 18 months and, therefore, it will be on the lookout for an ideal location close to refineries and feedstocks.
United States President Barack Obama and Prime Minister Datuk Seri Najib Razak witnessing the signing
of a memorandum of understanding between Verdezyne Inc president Bill Radany (right, seated) and Sime
Darby Bhd president Tan Sri Mohd Bakke Salleh in Kuala Lumpur yesterday. AP pic
Sime Darby president Tan Sri Mohd Bakke Salleh said the super palms can produce up to 10 tonnes of crude palm oil (CPO) per hectare, compared with the industry average of four tonnes per hectare.
"If we were to replace our planted areas with the latest planting material, we would be able to more than double our output," he told Business Times after the signing of a memorandum of understanding with United States biotechnology company Verdezyne Inc, here, yesterday, which was witnessed by Prime Minister Datuk Seri Najib Razak and US President Barack Obama.
Five years ago, Sime Darby announced the genome discovery with much fanfare, saying it would see higher yields and produce crops resistant to diseases and salinity, and also drought tolerant.
However, Bakke said there are outstanding areas to improve on before the company can achieve higher yields.
"It is work-in-progress and that is how we are positioning the company."
Currently, its plantations produce between six and eight tonnes of CPO per hectare.
Sime Darby is also getting involved in new activities, such as the tie-up with Verdezyne, which will enable it to expand its downstream activities to include products such as plastic and nylon.
It will take a 30 per cent stake, valued at US$30 million (RM98 million), in the San Diego-based company.
Mohd Bakke said margins are good for products such as CPO, palm kernel oil and oleochemicals, which are used to produce bio acids as feedstock for the nylon or textile industries.
Verdezyne president Bill Radany said the technology has successfully created Nylon 66 fibre, said to be the strongest man-made fibre, which can be used in carpets, textiles, apparel, lubricants and toothbrushes.
"We explored many countries in the region before deciding on Malaysia as the ideal location," he said of its venture into the Asian market.
Its next move is to scale up its commercial plant within 18 months and, therefore, it will be on the lookout for an ideal location close to refineries and feedstocks.
United States President Barack Obama and Prime Minister Datuk Seri Najib Razak witnessing the signing
of a memorandum of understanding between Verdezyne Inc president Bill Radany (right, seated) and Sime
Darby Bhd president Tan Sri Mohd Bakke Salleh in Kuala Lumpur yesterday. AP pic