Fulfilling a Growing
Demand for Agri
FGVH has approximately 355,864 hectares of plantation estates on the FELDA-Leased and Managed Land in Malaysia pursuant to tenancy agreements with FELDA with respect to 347,584 hectares of land in Peninsular Malaysia and Sabah; and a management agreement with FELDA with respect to 8,280 hectares of land in Sarawak. The vast majority of the FELDA-Leased and Managed Land is devoted to the cultivation of oil palms, with a small amount used to cultivate rubber trees.
We produced 5.2 million MT of FFB from the oil palm plantation estates on the FELDA-Leased and Managed Land in 2011. Pursuant to contractual arrangements that we entered into with F Palm Industries with effect from 1 March 2012, F Palm Industries will purchase from us substantially all of the FFB produced on the oil palm plantation estates on the FELDA-Leased and Managed Land, and sells to us substantially all of the total CPO that it produces.
In addition to oil palm, we also cultivate and harvest cup lumps on 10,308 hectares of rubber plantations on the FELDA-Leased and Managed Land, all of which we sell to Felda Rubber Industries Sdn Bhd (F Rubber Industries), a subsidiary of FHB, as raw material for its production of rubber products.
In Indonesia, FGVH has invested in Trurich (a joint venture with Lembaga Tabung Haji) that owns 42,000 hectares of oil palm plantations in East and Central Kalimantan, Indonesia. FGVH have also acquired PT Citra Niaga, a company that owns 14,385 hectares of land in West Kalimantan, Indonesia for oil palm plantation development.