Wednesday, 14 November 2007

Glenealy expanding (palm oil) landbank

The Star online. Malaysia 14th November.

Glenealy expanding landbank

KUALA LUMPUR: Glenealy Plantations (M) Bhd plans to increase its oil palm plantations and set up new mills in Indonesia as part of its overseas expansion exercise.

The group first ventured overseas through the acquisition of 15,000ha in East Kalimantan this year.

Managing director Yaw Chee Ming said Glenealy was keen to acquire land around its Indonesian plantation.

“However, we will not restrict ourselves to one single location and will continue to look for opportunities in other parts of Indonesia,” he said after the company AGM and EGM yesterday.

Chairman Chan Hua Eng said: “In Indonesia, the question is about land availability and dealing with government agencies. If we can overcome these hurdles, we will get more land bank.”

Yaw said the group would start planting activities in East Kalimantan within the next six months, after receiving approvals from the relevant authorities.

“The 15,000ha is a good size to start an oil palm plantation in Indonesia. Later, we will look at setting up at least two palm oil mills,” he added.

On the local front, Yaw said Glenealy was constructing its third palm oil mill in Lana, Sarawak, slated for completion in September next year.

“Initially, the mill will produce about 40 tonnes per hour and gradually reach full capacity at 60 tonnes per hour,” he said.

The group has mills in Lahat Datu, Sabah and Belaga, Sarawak.
Yaw said Glenealy was interested to acquire additional land bank in Sabah and Sarawak for oil palm plantations.

The group's total hectarage is about 65,000ha, of which 21,332ha are planted.
Glenealy's net profit jumped over 200% to RM15.8mil for the first quarter ended Sept 30 from RM4.5mil in the previous corresponding period.

With higher sales volume and CPO prices, turnover increased to RM53.5mil for the period under review against RM29.4mil previously.

In a filing with Bursa, Glenealy said the group's outlook continued to remain positive, sustained by potential supply shortage, lower soybean planting hectarage in the United States and South America, bullish reaction to Indonesia's export taxes on palm oil and continued demand for biodiesel supported by the high crude oil prices.