KUALA LUMPUR: Kulim (Malaysia) Bhd's (Kulim) subsidiary Mahamurni Plantations Sdn Bhd (MPSB) has signed an agreement with Southern Catalyst Sdn Bhd (SCSB) to take over the operation of its Air Manis estate in Sedenak, Johor.
In a statement today, Kulim said MPSB would manage a total planted area of 818 hectares of Air Manis estate, which is adjacent to Kulai-Sedenak federal road, about 12 kilometres from Kulim's Sedenak palm oil mill.
The agreement is for one year and is renewable annually.
Kulim managing director Mohd Faris Adli Shukery said managing third-party estates was in line with its business strategy that createdcsynergies to gain benefits for both parties at a competitive rate.
"Kulim has management expertise to provide services in the plantation industry such as our own laboratory which was accredited by ISO and advisories visits.
"Kulim welcomes the opportunity to manage Air Manis Estate which will expand the company's production base and enhance economies of scale due to its proximity to our palm oil mill."
Kulim's plantation operations in Malaysia cover a total area of 55,796 hectares.
It has five palm oil mills, which process an average of 1.4 million tonne of fresh fruit bunches annually.
In 2021, the company produced 295,747 tonnes of crude palm oil.
All of Kulim's 23 estates and five mills are RSPO-certified.