17/09/05 (Business Times) - KULIM (Malaysia) Bhd, which owns some6,500ha of oil palm plantations in the Solomon Islands, plans to fork outabout RM70 million to rehabilitate its oil palm operations and millingfacilities there.

The exercise would provide the foundation for Johor-based Kulim to furtherexpand its plantation area in the South Pacific nation to about 15,000hawithin five years.

Kulim, via its Papua New Guinea (PNG)-based subsidiary New Britain PalmOil Ltd, had last April bought an 80 per cent stake in SolomonIslands-based Guadalcanal Plains Palm Oil Ltd.

"The rehabilitation involves the replanting of oil palm trees, andreconstruction of a 30-tonne per hour palm oil mill."

"The plantation has been abandoned since 1999," Kulim said in a statementyesterday.

Bursa Malaysia Bhd main board-listed Kulim, which has been embarking on anoverseas expansion plan, also owns oil palm estates in Indonesia and PNGto complement its Malaysian operations.

The company, which hopes to export its crude palm oil from the SolomonIslands to Europe in the second quarter next year, expects its operationsin the island nation to contribute to its earnings in fiscal year 2006.

During the first half to June 30 2005, the group’s net profit was down 64per cent to RM22.8 million from RM63.9 million a year ago. Revenue,meanwhile, declined 6 per cent to RM672.1 million from RM716.9 million.