TSH Resources Bhd has become a high-yield and low-cost palm oil producer with one of the best fresh fruit bunch (FFB) yields of 30 tonnes per hectare per year for the last three years, way above the industry average of 19 tonnes.
The company plans to allocate between RM120 million and RM150 million capital expenditure (capex) per year for the next several years.
TSH chairman Datuk Dr Kelvin Tan Aik Pen said the company
recorded a low cost of production of RM830 per tonne of crude palm oil (CPO) between 2011 and 2013.
“We are focusing on high-yield production and low-cost production,” Tan said after the company’s extraordinary general meeting, here, yesterday.
Tan said its FFB production in Indonesia is expected to grow between 20 and 30 per cent annually for the next five years due to young trees coming into maturity.
“We are planting between 3,000ha and 5,000ha every year and we will practise good agronomic standards and capitalise on superior Wakuba (inhouse planting material) and management expertise.
“Wakuba should be able to produce between 32 and 35 tonnes of FFB per hectare,” he said.
Tan said the capex is for plantation development to capitalise on its 65,000ha unplanted landbank and existing 50,000ha planted areas.
Tan said TSH, which has a total landbank of 115,000ha in Sabah, Kalimantan and Sumatra, is planning to expand its hectarage in Sabah and Indonesia.