KUCHING: Ta Ann Holdings Bhd
has initiated a new investment in a joint-venture (JV) crude palm oil (CPO) bulking facility in Tanjung Manis, central Sarawak, says its executive chairman Datuk Amar Abdul Hamed Sepawi.
He said the bulking facility will complement the group’s upstream expansion in the oil palm industry and strengthen its storage and distribution capabilities, providing greater flexibility in managing supply cycle.
This will enhance logistical efficiency and support broader market access.
“Importantly, this investment also lays the foundation for potential downstream integration, including the development of a refinery in the future, thereby expanding the group’s presence within the oil palm value chain,” he noted in the company’s 2025 annual report.
Ta Ann’s JV in the CPO bulking facility is part of a larger integrated palm oil downstream complex in Tanjung Manis, where the Sarawak government has developed a palm oil industrial cluster (POIC).
The facility is strategically located in the central region, surrounded by oil palm plantations.
According to media reports, similar CPO bulking facilities are in operation in POIC Tanjung Manis, which has a deep-sea port.
These bulking facilities help smallholders, commercial plantations, and millers save millions of ringgit annually in transportation costs by reducing the need to transport palm oil several hundred kilometres away for processing in Bintulu, where refineries are located.
Abdul Hamed said Ta Ann had progressed plans to establish a new palm oil mill, the fourth in Sarawak, to support the anticipated growth in its fresh fruit bunch (FFB) production.
He said the new mill, which will have a processing capacity of 45 tonnes of FFB per hour, is expected to enhance processing capacity and improve logistical coverage across the region.
Ta Ann’s existing three palm oil mills mills produced 309,984 tonnes of CPO in financial year ended Dec 31, 2025 (FY25), up 13% from 273,261 tonnes in FY24.
Year-on-year, the group’s palm kernel output also increased by 13% to 67,860 tonnes from 60,239 tonnes.
“Aligned with our long-term strategy to strengthen the group’s competitiveness in the oil palm sector, we continued investing in assets that enhance operational efficiency and broaden our participation along the value chain,” added Abdul Hamed.
Ta Ann owns and manages 13 oil palm estates covering 72,499 ha, with a total planted area of 48,256 ha.
Of the planted area, the majority or 35,664 ha are in mature-prime (eight-20 years) age bracket, 5,930 ha in mature-young (four-seven years), 5,361 ha in immature (one-three years) and 1,301 ha in mature palms above 20 years.
In 2025, the group’s FFB production increased 3% to 686,538 tonnes (2024: 666,005 tonnes), while FFB yield improved 6% to 16.97 tonnes per ha (2024: 15.98 tonnes per ha).
Abdul Hamed said that, supported by higher average selling prices for CPO and FFB, Ta Ann’s operating profit surged 47% to about RM322.6mil in FY25, from a year earlier, on revenue of RM1.93bil.
Sarawak Plantation Bhd is the group’s largest associate, with Ta Ann holding a 29.4% equity interest.
Group managing director Datuk Wong Kuo Hea said Ta Ann continues to maintain a balanced age profile for its oil palms to ensure long-term production sustainability.
“Replanting activities in older and less productive areas reduced the proportion of prime mature palms by 8%, while young mature palms increased by 21% (in 2025), positioning the estates for yield uplift from late 2026.
“Immature areas expanded by 12%, securing the next generation of productive palms.
“Operational efficiency improved significantly through strict adherence to standard operating procedures and methods of procedures, resulting in stronger harvesting discipline and higher field productivity.
Besides oil palm, Ta Ann’s other core business is timber, which includes logging and reforestation, sawmilling, and plywood manufacturing in both Malaysia and Tasmania, Australia.
The group has a total of 31,542 ha in planted forests.
Ta Ann has diversified into paddy and pineapple cultivation, and Wong said these agriculture ventures have the potential to be an emerging growth pillar for the group.
