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Kulim unit to manage Southern Catalyst's oil palm estate

16/06/2022 08:58 PM

KUALA LUMPUR, June 16 (Bernama) — Kulim (Malaysia) Bhd’s subsidiary, Mahamurni  Plantations Sdn Bhd (MPSB), has signed a management agreement with Southern Catalyst Sdn Bhd  (SCSB) to take over the operations of its Air Manis Estate in Sedenak, Johor.

In a statement today, Kulim, a wholly-owned subsidiary of Johor Corporation, said MPSB will manage a total planted area of 818 hectares of the Air Manis Estate adjacent to Kulai–Sedenak federal road, about 12 km from Kulim’s Sedenak Palm Oil Mill. 

The agreement is for a period of one year and is renewable annually.

Kulim managing director Mohd Faris Adli Shukery represented MPSB while SCSB's chief operating officer Mohd Nazree Abu Kassim was the other signatory.

Managing third party estates is in line with Kulim’s business strategy to create synergies to benefit both parties at a competitive rate, the statement said, adding that the company has the management expertise to service the plantation industry.

 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 tonnes of fresh fruit bunches annually. 

The group produced 295,747 tonnes of crude palm oil in 2021, the statement said.

All of Kulim’s 23 estates and five mills are under the Roundtable on Sustainable Palm Oil certification, or  RSPO-certified.

Kulim welcomes the opportunity to manage the Air Manis Estate, which will expand the group's production base and enhance economies of scale due to its proximity to our palm oil mill,” said Mohd Faris.

“As a responsible agri-business player, Kulim will apply its best agricultural practices for optimal growth and the sustainable production,” he said.

Meanwhile, SCSB's Mohd Nazree Abu Kassim said the company looks forward to the exciting journey it is embarking on with Kulim.

He said the partnership is “a perfect fit” for its upstream and downstream plantation activities.




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