MARKET DEVELOPMENT
IJM Wants its Oil Palm Landbank to Eventually Outsize Singapore
IJM Wants its Oil Palm Landbank to Eventually Outsize Singapore
29/09/2014 (NST) - IJM Plantations Bhd, the plantation arm of IJM Corp Bhd wants to bolster its planted oil palm estates to match and eventually outpace the land size of Singapore.
IJM Plantations chief executive officer and managing director Joseph Tek Choon Yee said the company is on track to grow 70,000ha of planted oil palm estates over the next few years until 2020 from 61,000ha currently.
"By mentioning the land size of Singapore, investors can relate IJM Plantations size and the seriousness of th company in wanting to grow.
Our strategies are in place to sustain high performance and sustainability by doubling our Indonesia plantations," Tek told seven fund managers, analysts and Business Times at a familiarisation trip here over the weekend.
IJM Plantations, which is 55 per cent owned by IJM Corp, is a medium-sized plantation company listed on Bursa Malaysia with more than 85,000ha of oil palm areas (of which 71,000ha is planted) in Malaysia and Indonesia.
“Our target is to double our palm areas in Indonesia to 60,000ha and we will focus on securing sufficient landbank so as to ensure performance excellence in our operations with high yields and overall efficiency.
We know that we can do it as for the last six years, our oil yield has been 38 per cent higher than the country's national average.
Tek said eventhough CPO prices are currently depressed right now, he expects them to recover next year due to a recovery in crop production provided the El Nino (prolonged drought) does not occur.
Established in 1985, IJM started operations predominantly in Sandakan before the company expanded organically to the surrounding areas.
IJM Plantations was listed on Bursa Malaysia on July 2 2003 and employs close to 10,000 people. It has a market capitalisation of close to RM3 billion as of May 20 this year. -NST
IJM Plantations chief executive officer and managing director Joseph Tek Choon Yee said the company is on track to grow 70,000ha of planted oil palm estates over the next few years until 2020 from 61,000ha currently.
"By mentioning the land size of Singapore, investors can relate IJM Plantations size and the seriousness of th company in wanting to grow.
Our strategies are in place to sustain high performance and sustainability by doubling our Indonesia plantations," Tek told seven fund managers, analysts and Business Times at a familiarisation trip here over the weekend.
IJM Plantations, which is 55 per cent owned by IJM Corp, is a medium-sized plantation company listed on Bursa Malaysia with more than 85,000ha of oil palm areas (of which 71,000ha is planted) in Malaysia and Indonesia.
“Our target is to double our palm areas in Indonesia to 60,000ha and we will focus on securing sufficient landbank so as to ensure performance excellence in our operations with high yields and overall efficiency.
We know that we can do it as for the last six years, our oil yield has been 38 per cent higher than the country's national average.
Tek said eventhough CPO prices are currently depressed right now, he expects them to recover next year due to a recovery in crop production provided the El Nino (prolonged drought) does not occur.
Established in 1985, IJM started operations predominantly in Sandakan before the company expanded organically to the surrounding areas.
IJM Plantations was listed on Bursa Malaysia on July 2 2003 and employs close to 10,000 people. It has a market capitalisation of close to RM3 billion as of May 20 this year. -NST