PETALING JAYA (May 23, 2012): TSH Resources Bhd expects to spend between RM750 million and RM1 billion over the next five years to plant more oil palm and rubber to cater to its plantation business and to build more palm oil mills.
Chairman Datuk Dr Kelvin Tan said the projected capital expenditure would be financed from internally-generated funds.
"We always had a target of planting 6,000-7,000ha annually, between 4,000ha and 5,000ha would involve planting of oil palm and 1,000ha rubber," he told a press conference after the group's annual general meeting today.
Tan said the group expects a double-digit growth a year for production of fresh fruit bunches (FFBs) for the next three years.
"Our FFB production grew at an average 34 per cent a year over the past three years from 2008 to 2011, mainly from our plantation in Indonesia.
"Eighty per cent of our oil palm trees are below maturity, which means these trees will continue to produce more FFBs year-on-year," he said.
Tan said the first quarter of the year was a weak season for any palm oil estate. However, he was optimistic that the second half of this year would give a big boost for production.
On palm oil mills, group managing director Datuk Tan Aik Sim said his company has three mills in Sabah and two in Indonesia.
"We plan to build another two mills in Indonesia, one in July and another in about two years. We also plan to add another mill in Sabah at the end of 2013," he said.
On landbank expansion, the group hoped to acquire another 15,000ha to 20,000ha in Indonesia this year, while continuing to look for more land in Sabah to add to its existing over 60,000ha.
On outlook, the group was optimistic that the 2012 financial year would be even better than last year. – Bernama
