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 310,789 hectares of planted area in Peninsular Malaysia, Sarawak and Sabah and 8,642 hectares of rubber plantation in Negeri Sembilan, Melaka and Johor in Peninsular Malaysia as at 30 June 2013.
A total of 35 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) || 44 |
| Southern (Negeri Sembilan, Melaka and Johor) || 50 |
| East Malaysia || 35 |
| Total || 129 |
| Northern (Kedah, Perak, Selangor, Pahang and Terengganu) || 13 |
| Southern (Negeri Sembilan, Melaka and Johor) || 12 |
| East Malaysia ||9 |
| Total || 36 |
Prospects and Strategic Plan
Sime Darby Plantation’s improved performance within the next three years is bolstered by its profile of young palm trees, which represent 10 percent of the total planted hectarage in Malaysia.
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 13/14 – MALAYSIA
| Kedah/Perak North || 20.35 || Melaka/Johor North || 23.27 |
| Perak South || 22.33 || Johor Central || 21.02 |
| Pahang || 22.14 || Johor South || 20.39 |
| Selangor West || 24.31 || Sabah North ||18.89 |
| Selangor Central || 23.39 || Sabah Central/South || 25.23 |
| Negeri Sembilan 1 || 22.56 || Sarawak Lavang/Pekaka || 19.81 |
| Negeri Sembilan 2 || 22.51 || Sarawak Rajawali/Derawan || 21.71 |
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 8,642 hectares of rubber plantation concentrated within the rubber cluster in Negeri Sembilan, Melaka and north Johor namely in:
- Bukit Pilah Estate (Negeri Sembilan)
- Pertang Estate (Negeri Sembilan)
- St Helier/Juasseh Estate (Negeri Sembilan)
- Bradwall Estate (Johor)
- Sungei Sabaling Estate (Negeri Sembilan)
- Sungei Bahru Estate-(Negeri Sembilan)
- Welch Estate (north Johor)
- Sungei Senarut Estate (north Johor)
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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