Sindora plans RM36mil bio-fertiliser plant
Sindora Bhd will invest RM36mil in a bio-fertiliser plant that will mainly supply to its 60,000ha oil palm estates and those belonging to parent company Kulim (M) Bhd in Johor.
Sindora chairman Tan Sri Muhammad Ali Hashim said construction work on the plant on a 4.04ha site in Bandar Tenggara, Kulai, would start soon with expected completion by mid-2011.
“Initially, it will produce 80 tonnes of bio-fertilisers daily and has a daily maximum capacity of 120 tonnes,’’ he said at a share purchase agreement signing between Sindora and Microwell Sdn Bhd.
Sindora has agreed to acquire 3.8 million redeemable convertible cumulative preference shares (RCCPS) in Microwell for RM4.5mil cash.
Upon completion of the proposed acquisition, Sindora plans to convert 750,000 RCCPS into 1.5 million RM1 shares, representing 60% equity interest, in the enlarged share capital of Microwell, which has the expertise and technology in the research of bio-fertiliser and soil improvement fields.
Ali said that prior to its acquisition, Microwell conducted a trial test on the effectiveness of its bio-fertilisers by using fertilisers at 500ha oil palm estates in Johor belonging to Sindora and Kulim for over a year.
“The results were good as our oil palm trees produced 23 tonnes yield per hectare compared with 20 tonnes on the national level,’’ he said.
He said the bulk of the bio-fertilisers produced at the plant would be used at Sindora and Kulim oil palm estates while the balance would be sold to other planters.
Ali, who is also Kulim chairman, said Sindora and Kulim spent about RM70mil yearly importing fertilisers for their estates and by having in-house fertilisers, they could collectively save RM30mil yearly.
He said going forward, a similar plant could be built in Papua New Guinea where Kulim has 42,000ha oil palm estates under subsidiary New Britain Palm Oil Ltd.