Sime Darby Plantation in Malaysia
OIL PALM PLANTATION
Sime Darby Plantation Sdn Bhd’s operations in Malaysia is represented by 129 oil palm estates spanning 308,307 hectares of planted area in Peninsular Malaysia, Sarawak and Sabah and 9,405 hectares of rubber plantation in Negeri Sembilan, Melaka and Johor in Peninsular Malaysia as at June 2015.
A total of 34 SOUs (Strategic Operating Units) and 3 bulking installations throughout Malaysia are engaged in the processing of the company’s Fresh Fruit Bunch (FFB) harvests.
| Northern (Kedah, Perak, Selangor and Pahang) || 43|
| Southern (Negeri Sembilan, Melaka and Johor) || 51|
| East Malaysia || 35 |
| Northern (Kedah, Perak, Selangor and Pahang) || 13 |
| Southern (Negeri Sembilan, Melaka and Johor) || 12|
| East Malaysia ||9|
Prospects and Strategic Plan
Sime Darby Plantation seeks to continuously bolster its yield performance through its replanting programme at a rate of 4 percent of the total planted hectarage per year.
On-going initiatives to derive high yield will continue with estates and mills adopting Best Agricultural Management Practices, and the planting of high-yielding palm materials.
For effective management and cost-efficiency, Sime Darby Plantation’s estates and mills operate within an organisational structure of Strategic Operating Units (SOUs), zones and regions.
FFB YIELD BREAKDOWN BY ZONE
FOR FY JUNE 2015 – MALAYSIA
| Kedah/Perak North ||21.09|| Melaka/Johor North ||23.44|
| Perak South ||23.93|| Johor Central ||22.46|
| Pahang ||19.72|| Johor South ||21.18|
| Selangor West ||25.62|| Sabah North ||18.19|
| Selangor Central ||23.43|| Sabah Central/South ||23.89|
| Negeri Sembilan Zone 1 and 2||22.95|| Sarawak Lavang/Pekaka ||20.82|
| Sarawak Rajawali/Derawan ||21.51|
The shrinking of world’s rubber area, high increase in petroleum prices, expansion of the world’s automobile industry and growth in the medical field, gradually give rubber, which experienced its bleak era for the past 10 to 15 years, a new lease of life.
While oil palm reigns as the main crop of Sime Darby Plantation, the company is reducing the Group’s dependence on a mono-crop business with the planting of rubber.
To date Sime Darby Plantation owns 9,603 hectares of rubber plantation concentrated within the rubber cluster in Negeri Sembilan, Melaka, Johor and Kedah namely in:
- Bukit Pilah Estate (Negeri Sembilan)
- Pertang Estate (Negeri Sembilan)
- St Helier Estate (Negeri Sembilan)
- Bradwall Estate (Negeri Sembilan)
- Sungei Sabaling Estate (Negeri Sembilan)
- Sungei Bahru Estate (Melaka)
- Welch Estate (Johor)
- Sungei Senarut Estate (Johor)
- Anak Kulim Estate (Kedah)
- Bukit Hijau Estate (Kedah)
- Sungei Dingin Estate (Kedah)
Apart from the estates, Sime Darby Plantation also owns a latex concentrate factory in Sungei Senarut Estate (SD Latex Batu Anam) and a SMR rubber factory in Tangkah. Sime Darby’s associate company Muang Mai Guthrie Public Company Limited, involved in the mid stream rubber processing, owns two factories in Thungsong and Surat Province, Thailand, producing primarily latex concentrate, skim block rubber and epoxidised natural rubber (ENR).
These various rubber products are sold to local rubber manufacturers as well as exported all over the world.
Prospects and Strategic Plan
Sime Darby Plantation takes the development in the rubber industry as a positive sign that the industry is stabilizing itself. The company is leveraging its current strength and recognizes rubber as one of the core businesses, capable of contributing significantly to the Group. Sime Darby Plantation owns the necessary expertise, resources and technology in production and processing of rubber as well as strong market access and reputation in respect to rubber business.
The positive development in the rubber industry also gives Sime Darby Plantation the confidence to expand its plantation size. Sime Darby Plantation has identified some areas in Malaysia, South East Asia and Africa for expansion.
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