Jaya Tiasa continues to develop its oil palm plantations business to tap rising demand. So far, it has completed planting on 23,141ha. About 4,195ha are expected to mature in the financial year ending April 30, 2008 (FY08).

Corporate services senior manager Thomas Hii said this should increase sales of fresh fruit bunches, and the company would plant and develop the remaining hectares over the next four years.

“We will set up four palm oil mills in the next four years. The first mill, costing RM35mil, will be ready by end-FY08,” he said.

Hii added that the oil palm plantations would contribute pre-tax profit of RM10mil for FY08 based on conservative assumption of crude palm oil prices of RM1,800 to RM1,900 per tonne.

As the company moved towards high margin product mix, Wong said it would increase plywood sales to

On its dividend policy, Wong said the capex going forward would be quite substantial and would use internal funds.

“We ask shareholders to bear with us, so we are giving one treasury share for every 20 existing shares held.

“As the contribution from palm oil materialises over the next couple of years, there will be additional cashflow. There is definitely a policy to return cash to shareholders,” she added.

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