IJM plans to venture into palm oil refining


  • Business
  • Wednesday, 23 Mar 2005

BY YEOW POOI LING

IJM Corp Bhd, whose plantation division plans to go into downstream activities, sees good potential in the palm oil refining business, chief executive officer and managing director Datuk Krishnan Tan said.  

He said the plantation division's activities currently involved the harvesting of fresh fruit bunches, the operation of crude palm oil (CPO) mills and kernel processing. 

“(So) it is fairly natural for us with a sizeable acreage to look at the refining business,” Tan told reporters after the company’s EGM in Petaling Jaya yesterday. 

IJM’s 49%-owned plantation unit, IJM Plantations Bhd, has 30,000ha, which include 11,500ha of immature plantations and 3,000ha of yet-to-be planted land.  

On IJM's construction activities, Tan said the group had submitted bids for some RM2bil worth of projects overseas, mainly in India and the Gulf region. 

“The Indian government said the country's infrastructure spending over the next 10 years would be US$150bil. This means there is tremendous potential for contracting business in that country,” he said. 

Offshore projects account for 30% of IJM's total order book, which currently stands in excess of RM2bil, and contributed about 15% of its net profit for its four financial quarters ended December 2004. 

IJM, which changed its financial year-end to March from December, posted a net profit of RM154mil on the back of RM1.2bil sales for the four quarters. 

The construction division contributed about 45% of total earnings and was expected to continue to do so over the next two years, Tan said. 

He added that the company was eyeing for infrastructure projects in Indonesia.  

 IJM :  [Stock Watch]  [News]

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