Our Future Plans

Our future plans are to ensure growth and to position us as a main player in the oil palm business participating in both up-stream and down-stream activities in Sarawak. It is our vision to increase our production capacity and venture into both up-stream and down-stream activities. Our short term and longer term plans are set out below:

(a) Short Terms Plan

Our short term plans include the following:

(1) Expansion of plantation hectarage
We plan to increase our plantation hectarage through various methods, including, but not limited to, development of our own land bank, participation in NCR land development on a joint venture basis and procurement of additional land bank in Sarawak. This will enable us to increase our production of FFB and consequently increase our production of FFB into CPO and PK.

We have applied to the relevant authorities for alienation of certain state lands which are suitable for oil palm plantation. Some of the lands have already been alienated to us while others are being processed by the relevant authorities.

In addition, we are actively identifying other lands which are suitable for oil palm plantation which may include state lands and non-state lands. Once the preliminary study shows suitability and acceptability, we will proceed to, inter-alia, make the necessary applications to procure the alienation of lands to us and/or enter into agreements with third parties to acquire such lands. Upon obtaining the necessary land titles, we will commence work on these lands.

We will also continue to participate in the development of NCR lands. In this regard, we have registered our interest with the relevant authorities to develop certain lands earmarked by the authorities for development into oil palm plantation on a joint venture basis. With our expertise and experience, we believe that we will be able to further promote the development of NCR lands for the benefits of the local natives.

(b) Long Term Plans

Our long term plans comprise the following:

(1) Further expansion of plantation hectarage
We plan to increase our plantation hectarage and develop more oil palm plantations to a total of 80,000 Ha by 2012.

(2) Expansion of up-stream activities
We plan to increase our seed production to a total of 5 million seeds within the next 5 years. This would enable us to have high quality seeds for our expansion plans and to support the increase in development of oil palm plantations in Sarawak.

(3) Venture into down-stream activities
We are also considering diversifying our business into various down-stream activities. Some of the activities include the following:

(i) Biodiesel and co-generation from POME
In view of the future prospects and great potential of biodiesel, we are eager to venture into the production of biodiesel from CPO as part of our expansion of down-stream activities. Our management team has visited some biodiesel plants in Europe and the United States of America in early 2006 to explore the possibility of procuring a biodiesel plant.

Biological treatment of POME generates gases such as methane, carbon dioxide and hydrogen sulphide where methane can be harnessed as fuel for gas engine to generate electricity. Currently, methane gas produced by the anaerobic digestion of POME in our effluent treatment ponds is released to the atmosphere as a potent greenhouse gas. Recently, there is a new technology introduced from overseas which has state-of-the-art equipment to capture and purify the methane gas to run the gas fired engine.

We are carrying out preliminary studies to assess the commercial viability of these products.

(ii) Production of animal feed from palm fronds
We can recycle wastes arising from our regular pruning of oil palm trees, into nutritious animal feeds which can support the requirements of growing cattle. This innovative technology means that we can recycle our wastes arising from our operations for other uses which may be profitable.

(iii) Extraction of antioxidants from water-soluble fractions of palm oil and extraction of Vitamin E from palm fatty acid distillate
There is a process available to recover valuable antioxidants with nutraceutical potential applications from the water-soluble fractions of palm oil. The crude extract (i.e. the palm fruit juice recovered through a process) is rich in phenolic antioxidants including flavonoids, polyphenols and phenolic acids and water-soluble vitamins and organic acids which may be consumed as fruit juices blended with other food ingredients.

We can also extract Vitamin E (tocophenols and tocotrienols) from fatty acids distillate after pre-treatment or refining process of CPO.

Our Directors believe that these two (2) products can potentially be marketed commercially which may be profitable. We are carrying out preliminary studies to assess the commercial viability of these products.