Java Inc expects palm oil earnings in four years
The Star
Tuesday December 18, 2007
He said Java, which completed the planting process in July, would focus on timber and oil palm as its core businesses.
“Timber operations are likely to face a challenging operating environment during the present financial year ending June 30, 2008 due to sluggish prices driven by decline in housing starts in
“We don’t see a recovery yet in
Sy added that rising crude oil prices were also eroding margins.
To mitigate the impact, Java is currently shifting its diesel-run plant to electricity. He said the shift would result in cost savings of 20% to 30% and reduce dependence on diesel.
The company would continue to expand in the
The Middle East was anticipated to contribute about 20% of revenue but margins were not as attractive as
Java will continue to look for more timber concessions to ensure a steady supply of timber.
In its 2007 annual report, the company that said timber demand and prices would recover in the last quarter of FY08, buoyed by developing markets like the Middle East and
