TH Plantations Bhd, the plantation arm of Lembaga Tabung Haji, aims to boost the size of its oil palm estates by 50 per cent this year to boost income.The company's landbank now totals 28,730ha and wants to grow this as crude palm oil prices continue to be strong.TH Plantations managing director Datuk Rashidi Che Omar said the company, which owns estates in Sarawak and Terengganu, is scouting for land in the two states as well as in Kelantan, Sabah and in Riau and Kalimantan in Indonesia."We are in active talks with several parties including our parent Tabung Haji," Rashidi told reporters in Kuala Lumpur yesterday after the company's annual general meeting.
Apart from its own estates, TH Plantations also manages Tabung Haji's 129,660ha oil palm plantations in Sabah, Sarawak, and Riau in Indonesia.
"How much we plan to spend depends on land availability and only then can we determine the financing method but it will be financed by internally-generated funds," said Rashidi.The current market price for existing plantations starts at around RM30,000 per ha while unplanted land could sell for RM7,000 per ha, he said.Rashidi added that the firm also plans to spend RM64 million to develop new areas and upgrade its existing three oil palm mills in Peninsular Malaysia.Meanwhile, TH Plantations chairman Tan Sri Dr Yusof Basiran said CPO prices will continue to be strong, ranging between RM3,000 and RM3,500 per tonne due to tight supply and strong demand for biodiesel.-www.btimes.com.my
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