GEORGE TOWN: Oriental Holdings Bhd is looking to deliver higher oil yields by planting additional oil palm trees in Indonesia and replanting ageing trees in Malaysia.
As for its automotive division, the diversified conglomerate, which operates Honda and Mitsubishi dealerships, plans to upgrade four of its 3S (sales, service and spare parts) outlets to 4S (sales, service, spare parts; as well as body and paint services) centres to compete more effectively in an increasingly competitive market.
According to its annual report, the group said it planned to plant 1,000 to 2,000 hectares of oil palm plantations each year in Indonesia over the next two years. The group has to date planted 10,600 ha in Indonesia.
Oriental is constructing its fourth mill in South Sumatra in anticipation of rising fresh fruit bunches (FFB) output from 2020 to 2022 following the maturing of its plantations there.
The oil mills are targeted to be commissioned in early 2020.
The existing three palm oil mills in Indonesia, with a combined operating capacity of 240 tonnes per hour, process its own estates’ crops as well as crops purchased from smallholders, FFB traders and other third party estates.
In Malaysia, the strategy is to replant 318 ha this year.
In the financial year ended Dec 31, 2018, Oriental replanted a total of 239 ha, compared with 444 ha in 2017, for its Malaysian plantations.
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