HSP committed to maintaining status as a sustainable palm oil producer
KUCHING: Hap Seng Plantations Holdings Bhd ( HSP) is committed to maintaining its status as a sustainable palm oil producer by expanding its planted area and reducing carbon emission at its plantations area with its biogas projects.
In its Annual Report 2017, HSP said it would continue its efforts in attaining the Malaysia Sustainable Palm Oil ( MSPO) certification.
“The group will continue its effort to maintain its status as a sustainable palm oil producer. It will continue its MSPO certification process to achieve 100 per cent MSPO certification for all its operations by 2018.
“The group will also continue with its efforts to reduce carbon emission within the plantation with the commencement of installing its second biogas project in the Bukit Mas Palm Oil Mill,” it said.
Aside from that, it said, the group is committed to further expand its planted area.
“To this end, the group has entered into a conditional agreement to acquire a majority stake in Kretam Holdings Bhd ( KHB), a listed plantation company in Bursa Malaysia.
“KHB’s estates are located in the vicinity of the group’s estates and this proposed acquisition, if completed, will increase the group’s total planted area by approximately 19,623 hectares to 55,726 hectares,” HSP explained.
Meanwhile, on its outlook, HSP said it positive in its outlook and would continue to develop and expand its business.
“With the growth in world population, with China and India continue to be the most populated countries in the world making up approximately 37 per cent of the world population, this augur well for the long-term prospect of palm oil.
“The group believes in the long-term viability of the palm oil industry as demand for palm oil continues to grow, supported by the versatility of the palm oil in its use.
“Accordingly, the group is positive in its outlook and will continue to develop and expand its business,” it commented.
HSP said oil palm cultivation continued to be the most efficient oil crop in terms of land use.
“It also has the highest yieldcompared to other oil crop per hectare of land use, yielding approximately 3.8 tonnes of oil per hectare per annum as compared to soybean, the closest competitive oil crop, at only approximately 0.5 tonnes per hectare per annum.
“Global palm oil production has increased from 15.2 million tonnes in 1995 to 62.6 million tonnes in 2015, making it the highest production volume of all vegetable oils.
“Global palm oil consumption also grew in the same period from 14.6 million tonnes to 61.1 million tonnes, making it the most consumed oil in the world. China, India and the European Union are the largest consumers of palm oil accounting for 47.9 per cent of global imports.”