FGVH to buy 150,000 hectares of estate land
KUALA LUMPUR, Aug 23 — FELDA Global Ventures Holdings Bhd (FGVH), the world’s third largest palm oil company by area, plans to buy 150,000 hectares of estate land over five years to realise its cherished vision to emerge as the world leader in the oil palm industry.
President and chief executive officer Datuk Sabri Ahmad said the purchase would however depend on global market prospects for oil palm and palm oil and derived benefits from the purchase.
FGVH, a wholly-owned subsidiary of FELDA Holdings Bhd, made a strong debut on Bursa Malaysia recently.
FELDA Holdings is one of Malaysia’s largest and most diversified agro-based enterprises which runs the commercial business related to oil palm and palm oil.
Sabri said: “FELDA Global Ventures aims to be the world’s No. 1 player in the oil palm industry in the next eight years. By acquiring another 150,000 hectares, our company’s total land bank will touch one million hectares,” he told Bernama.
Currently, the company has 350,000 hectares of plantation land and is managing 500,000 hectares owned by FELDA settlers.
On FGVH’s cross-border expansion plans, Sabri said the potential ASEAN countries are Indonesia, Cambodia and Myanmar.
“We are focusing on the three countries in our Phase One expansion plan and if there are opportunities, we intend to expand our plantation and manufacturing sectors.
“However, the cross-border expansion plan is still at the initial stage. We are conducting feasibility, technical, financial and risk studies.
“These studies are important to face any business risks in future,” he said.
However, to prepare for the expansion plan Sabri said high-yield oil palm trees are being planted in 15,000 hectares in East Kalimantan to replace old, unproductive and uneconomical trees.
He said plans are also afoot to expand the downstream sector by opening more factories to package palm oil-derived cooking oil and manufacture margarine, a palm oil by-product, in Cambodia and Vietnam.
“As the main component of the FELDA Group of Companies, FELDA Global Ventures’ plantation unit, which contributes 85 per cent of the group’s total revenue, is our top priority now,” he added. — Bernama