Corporate Captains
The Star
Thursday March 27, 2008
Asiatic Development Bhd is looking to expand its palm oil plantations, said chief operating officer Yong Chee Kong.
“We are always on the lookout for opportunities. We have not decided where we will be expanding to but we are open (to opportunities),” he said.
Yong said Asiatic was also looking at expanding its non-plantation business, as ideally it wanted all its divisions to make significant contributions.
“Our property division is improving but is overshadowed by our plantation division due to the high selling prices,” he said.
Yong expects crude palm oil (CPO) price at RM2,800 to RM3,200 per tonne this year.
“We expect our output to rise to 272,000 tonnes this year from 250,000 last year. We are also looking at improving our oil extraction rate to 21% this year,” he added.
Yong said the group spent about RM67mil on capital expenditure last year and would double it this year.
Sime Darby Bhd expects CPO price to stabilise at around RM3,400 per tonne this year, said president and group chief executive Datuk Ahmad Zubir Murshid. “The demand is still there,” he said.
