25/07/2011 (Bernama) - Sime Darby Plantation, the plantation and agri-business arm of Sime Darby Bhd, aims to produce over three million metric tonnes of certified sustainable palm oil (CSPO) by 2015.

Managing director Franki Anthony Dass said Sime Darby Plantation expects sustainable palm oil production to be at 2.5 million metric tonnes this year after achieving the one million metric tonne mark as of this month.

The company also targets to produce 630,000 metric tonnes of kernel palm this year, with 320,000 metric tonnes already considered certified sustainable palm kernel oil (CSPKO).

"In 2009, we were capable of producing only 184,000 metric tonnes of CSPO. That rose to 421,000 in 2010 and today we are past the milestone one million metric tonne," Franki Anthony told a media briefing today.

Sime Darby Plantation operates 63 strategic operating units (SOUs) and now has 36 certified by the Roundtable of Sustainable Palm Oil (RSPO), of which eight are located in Indonesia.

The 36 certified SOUs have the capability of producing more than 1.5 million metric tonnes of CSPO and certified sustainable palm kernel oil (CSPKO).

Franki Anthony said there were 24 SOUs also awaiting certification, adding that Sime Darby Plantation planned to have all the SOUs certified by year end or 2012.

On the price outlook for crude palm oil, Franki Anthony said the prices should remain firmly above RM3,000 per tonne until the end of this year and early next year.

"Demand for palm oil will still be good and many manufacturers are switching to palm oil to reduce their feedstock cost price," he added.