CEO Morning Brief

Kulim (Malaysia) Consolidates Its Plantation Business Under Johor Plantations

Publish date: Fri, 24 Mar 2023, 08:46 AM
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TheEdge CEO Morning Brief
Kulim (Malaysia) consolidates its plantation business under Johor Plantations

KUALA LUMPUR (March 23): Kulim (Malaysia) Bhd has consolidated all of its plantation businesses under its subsidiary Johor Plantations Bhd (formerly known as Mahamurni Plantations Sdn Bhd).

The move is a result of a business transformation at Kulim which involves Johor Plantations managing Kulim’s landbank of more than 60,000 hectares, 23 estates, five mills, and trading & services activities in Malaysia.

It also includes its renewable energy initiatives comprising a biomethane plant and five biogas plants, Kulim said in a statement on Thursday (March 23).

“The renaming of the subsidiary’s name to Johor Plantations is in line with its vision to be widely recognised as an integrated plantation company that produces high quality, sustainable, and traceable specialty oils and fats.

“The new name gives the company a sense of origin since its estates, mills and operations are almost entirely located in the state of Johor. This includes the close business relationship the company has with Johor smallholders,” said Kulim in the statement.

Johor Plantations has appointed Mohd Faris Adli Shukery as its managing director.

He joined Kulim in October 2020 and was tasked to spearhead its reorganisation and transformation agenda.

Tan Sri Dr Ismail Bakar, who was appointed as chairman of Kulim in May 2022, will lead Johor Plantations’ board of directors.

“The reorganisation is a part of Kulim’s ongoing five-year business transformation to be a progressive, efficient, profitable, and respectable agribusiness company in the region. It also establishes Kulim as the agribusiness group of its parent company Johor Corporation (JCorp),” Kulim added.

Under the restructuring, Kulim’s agrifood segment, which includes agro farming and livestock operations, is placed under Farmbyte Sdn Bhd (FarmByte) and managed by chief executive officer Syed Aiman Syed Jaafar.

JCorp’s plantation unit Kulim plans to raise approximately RM1 billion in an initial public offering (IPO) on the local bourse this year, according to a report by Bloomberg.

The Edge Malaysia weekly (May 16-22, 2022 edition), quoting sources, reported that JCorp is mulling the IPO to ride on strong crude palm oil prices, with RHB Investment Bank Bhd roped in for the listing.

Source: TheEdge - 24 Mar 2023

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