27/05/2011 (Bernama) -- Sarawak oil palm and timber giant, Ta Ann Holdings Bhd, is planning for more automation of its oil palm estates to counter labour shortage.

At present, a mechanical infield fruit collection system is used on two of its 14 plantations, said Group Managing Director/Chief Executive Officer Datuk Wong Kuo Hea.

The public-listed company would pursue this direction, among many other action plans, this year to improve its bottomline, he said in the company's annual report for the financial year ended Dec 31, 2010.

Wong also said TA Ann targetted to plant 8,000 hectares with oil palm, this year, besides planning the building of a second crude oil palm mill.

The group's land bank currently stood at 66,681 hectares, of which, 28,729 hectares were already developed while 17,476 hectares were matured.

He added that fresh fruit bunch production in 2010 was 30 per cent higher at 310,870 tonnes, from 238,632 tonnes recorded in 2009, and had contributed to 75 per cent increase in revenue.

"In the reforestation division, Ta Ann also targets to plant 3,700 hectares, this year, while 3,009 hectares were planted last year.

"This is in furtherance of our target to plant up to 70,000 hectares to sustain a 15-year cutting circle of 4,500 hectares, annually," he said, adding that by then 70 per cent of its licenced tree planting areas would be conserved.

Wong said Ta Ann was also seeking to establish the second cycle of Acacia mangium replanting after harvesting the first round planted some 15 years ago.

"Then, there is the plan for larger scale Kelampayan planting on terraces at our Woodley plantation unit," he said.

For plywood, which was one of the company's core exports, Wong said the group would continue with new eco-product development such as hybrid plywood and explore more niche markets.

He said due to strong demand and better average selling price, the commodity had registered a 35 per cent revenue increase in 2010.