23/6/04 - SINDORA Bhd is reducing its dependency on the timber-relatedbusiness by further developing its oil palm business division.

Chairman Tan Sri Muhammad Ali Hashim said the future for timber-relatedactivities was quite uncertain due to unfavourable business conditions.

He said that like any other timber operator, the company had encounteredproblems in securing new concession areas in Malaysia due to the limitednumber of logging areas available.

The move will help the company to enhance its earnings base and lessen ourbusiness risk,'' Ali told reporters after the company AGM yesterday.

He said the company's existing logging area would be fully extracted byend of this month and it had applied for additional logging area.

Ali said the company had applied for 1,400 acres from the Johor governmentand it also took part in the open tenders for logging concessions.

According to Ali getting additional logging area is vital to the group, asit would ensure the long-term survival and continuity of its timberoperations.

The company also wanted to expand its oil palm plantation acreage in Johorwhich currently covered an area of 5,594ha with 82% matured palm trees.

Our land size is still small compared with other plantation companies.

Apart from Johor, we are also looking for land elsewhere in the countrytoo,'' Ali added.

The company would install the mill integrated waste management solutionsystem (WIMAMAS) plant at its oil mill in the Sindora Estate, Kluang.

The plant, which cost RM2.7mil, would produce bio-compost fertilisers forin-house use from the husks of the empty fruit bunches and palm oil milleffluent.

We spend about RM2.5mil yearly on fertilisers at the estate.

With WIMAMAS, we could reduce between 10% and 20% in fertiliserspending,'' Ali said.