Kulim
-
Upload
littlegate-publishing -
Category
Documents
-
view
214 -
download
0
description
Transcript of Kulim
WRITTEN BY KATIE RICHARDSON
As a fervent leader in an industry coping with world-wide criticism and concern, Kulim (Malaysia) Berhad is determined to maintain sustainable initiatives and environmental preservation in its palm oil productions, as well as ‘commit to the highest standards in ethics, integrity and professionalism’
KEEPING PRODUCTION Prosperous
“The road to sustainability is not always easy, and setbacks
can occur,” remarks Kulim (Malaysia) Berhad’s chairman,
Kamaruzzaman Abu Kassim. “But, like our crops, we
continue to grow and increase yields for people and the planet. We
are poised for big changes ahead and we look forward to the new
challenges.”
Kulim (Malaysia) Berhad started its operations of a 190-hectare
rubber plantation in Johor, Malaysia in 1947 under the name Kulim
Rubber Plantations Ltd. A little over 20 years later, in 1970, the
company starting listing shares on the London Stock Exchange (LSE)
under the new name Kulim Group Ltd (KGL). A property portfolio was
next in line for the oil palm company just three years later, and KGL
expanded in the UK and with hotels in the Caribbean.
The group was incorporated and made public in 1975, and KGL
started developing into a subsidiary of Kulim (M) Bhd. Over the last
30 years, the group has continually expanded in the sector, diversified
its operations and consolidated its assets. Consequently, Kulim (M)
Bhd averages a five-year yield per hectare of 23.50 tonnes and is now
one of the palm oil industry’s most powerful players.
Supportable developmentThe company has stringent corporate policies concerning
sustainable development, and its main objective concerns maintaining
high yield levels while retaining best practice product extraction.
It is committed to a philosophy of total quality management, and
its ISO accreditation obtained by its own and contracted operating
units, reflects its concerns to adhere to extremely high product and
plantation standards. A culture of awareness is prevalent across all
organisations processes, and is designed to achieve both stakeholder
and customer satisfaction. As a result, Kulim (M) Bhd has received
several awards from international industry bodies, highlighting
its corporate commitment towards both sustainable business and
quality produce.
From planting and harvesting, to sterilisation and pressing,
Kulim (M) Bhd is dedicated to making the whole palm oil production
process sustainable. The company has made several changes and
implemented various measures in the last four years in order to
uphold the fundamentals of its sustainability strategy.
“We have divested our oleochemicals [chemicals derived from
plant and animal fats] business and are in the process of divesting our
foods and restaurants business,” says Kamaruzzaman. “We have also
acquired additional oil palm estates, allowing us to strengthen and
develop our sustainable agri-business model. Our commitments to
sustainable agriculture are now central to our business strategy.”
With the conviction of such strong corporate responsibility pledges
behind it, the group was one of the very first palm oil producers to be
certified to the Roundtable on Sustainable Palm Oil standard in 2009.
The company is also dedicated to its 30:30 initiate which aims to raise
fruit yields to 30 tonnes per hectare and palm product extraction
rates to 30%. Kulim (M) Bhd’s Sustainability Report 2010/2011 notes
“We know from surveys and focus groups that our employees are generally happy to work for us. We have focused on strengthening our decision making and management to allow for a better working climate.” Kamaruzzaman Abu Kassim, Chairman of Kulim (Malaysia) Berhad
KULIM
Palm oil production has come under fierce scrutiny in recent years, particularly regarding product extraction. The industry has been linked to serious environmental fears, especially habitat degradation; animal cruelty; indigenous rights abuses; and deforestation in the plantation areas.
Bhd also strives to be an employer of choice at a local level. In 2009,
the company pledged to do more for members of staff at the lower
end of the pay scale. “Since then, most of these employees have been
given the opportunity to earn additional income and housing and
facilities provided to our employees have also been upgraded,” says
Kamaruzzaman. “We are also focusing on end-of-career training,
contributing to fulfilling, active and decent retirement for our
employees.”
Alongside improvements to complex health and safety issues and
working conditions, another noteworthy endeavour for the company
is gender equality amongst its workforce. “Our Women OnWards’
initiative goes from strength to strength, increasing opportunities
for women at all levels,” says Kamaruzzaman. “We are also supportive
of the recommendations adopted by the Government and Bursa
Malaysia that 30% of decision-makers in PLCs should be female.
“Perhaps such targets will one day be obsolete, but our experiences
show that support and encouragement of women is crucial.”
Although hefty recruitment of oil plant workers is commonplace
in fast growing industries in Indonesia and Africa, Kamaruzzaman is
confident of retaining a valued workforce: “We know from surveys
and focus groups that our employees are generally happy to work for
us,” he says. “We have focused on strengthening our decision making
and management to allow for a better working climate.”
Recent developmentsIn August 2013, it was reported that Kulim (M) Bhd would raise
its stake in associate company New Britain Palm Oil Ltd (NBPOL) to a
controlling level after an impressive result in terms of yields and palm
product extraction. “When there are good business opportunities
and the timing is right, you should not miss them or let them go,”
Kamaruzzaman said at the time. “The offer to increase our investment
in NBPOL represents a vote of confidence. It also represents a vote
of confidence in the growth prospects of Papua New Guinea, the
Solomon Islands and the other markets that NBPOL serves.”
However, the Papua New Guinea government has since rejected
the bid as it wants to give more business opportunities back to its own
people. Minister for Trade, Commerce and Industry Richard Maru
announced in September 2013: “The government will in the future
ask Kulim to sell down some of its shares to the respective provincial
governments where the assets of NBPOL are located and the
Government will not allow anymore attempt by Kulim to buy anymore
shares from New Britain Palm Oil.”
However, lucrative prospects do remain on the horizon: as of
March 2014, Kulim (M) Bhd turned a particularly successful corner
after chalking a net profit of RM3.39m (£626,250) at the end of
the fourth quarter in December 2013, from a net loss of RM39.4m
(£7.28m) a year ago. The company also reported a 104% hike in net
profit for the full financial year in 2013, from RM211m (£38.97m) in
2012 to RM431m (£79.6m).
KULIM
that: “A voluntary standard, the RSPO’s international credibility and
commitment to stakeholder inclusion makes the certification credible
and robust, though there are always opportunities for improvements.
We believe that it represents the most responsible way to grow oil
palm. All our planted areas meet the stringent RSPO Principles and
Criteria for sustainable palm oil production.”
Workforce sustainment As well as demonstrating concentrated global efforts, Kulim (M)
“ Our commitments to sustainable agriculture are now central to our business strategy.”
AWAN TIMUR GROUPInnovative • Technology DrivenDedicated Team • Reliable • Experienced
Kamaruzzaman says the oil
palm division will remain Kulim
(M) Bhd’s main business activity,
but it is actively looking at ways
to develop, strengthen and grow
operations. “We are continuously
exploring new land opportunities
from time to time for our oil palm
business both locally and abroad,”
he stresses. Although Kulim (M)
Bhd dissociated itself from an
Indonesian investment in 2007,
Kamaruzzaman does not dismiss
the possibility of returning, as
Malaysian landowner prices
were “too exorbitant” for oil palm
cultivation.
The company will continue
its strategy to capitalise on
new business opportunities,
particularly in the oil and gas
industry as well as selective
property development. “We
see Petroliam Nasional Bhd’s
Refinery and Petrochemical
Integrated Development or
Rapid project in Pengerang,
Johor, as a good platform to
offer support services to the
oil and gas players there,” says
Kamaruzzaman. Regardless of
acquisition or expansion plans,
it seems the group’s sustainable
development initiatives,
commitment to employees and
high yield levels will continue to
deliver successful results.
ATG is a leading palm oil mill
construction specialist with
vast experience in design
and construct, fabrication
works and also an authorized
supplier of crucial machines &
spares necessary for driving
the oil palm industry.