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IOI aims to increase crop production by 10 pct in FY2018
31/10/2017New Straits Times


IOI Corporation Bhd chief executive officer Datuk Lee Yeow Chor says the past few years have seen more investments put into the downstream businesses and it is time for a realignment to be carried out. (NSTP Pic by MUHD ZAABA ZAKERIA)


PUTRAJAYA: Integrated palm oil player company IOI Corporation Bhd aims to increase crop production by 10 per cent in its financial year 2018, and will also embark on rebalancing its investments into upstream businesses while reaping the profits from previous investments in downstream businesses. 

"The major part of our earnings come from our plantation business. We aim to increase 10 per cent after drop impact from El Nino last year. 
 
"We are also allocating 25 per cent of the sales proceeds for future investments in upstream and downstream but focus will be more on upstream. 

"We have about 30 per cent interest in our investment in Scotland in about 9 months time and 100 per cent from the oleochemicals business which will present investment opportunities," chief executive officer Datuk Lee Yeow Chor said. 

He said the past few years have seen more investments put into the downstream businesses and it is time for a realignment to be carried out. 

"We hope specialty fats business post sale to Bangi, the business will grow much faster. On the olechemical side, after the puchase of two plants in Germany, we will now make more focus into our upstream business. 

"The natural hedge synergy between upstream and downstream businesses have maintained a somewhat stable profit and we aim for it to remain that way. 

"We are also looking into new emerging markets such as Ghana in West Africa and Iran which has shown more than 100 per cent growth in palm oil last year," added Lee. 

Asked on the palm oil price outlook, Lee said it seems strong and stable, while not discounting the fact that La Nina may cause the price to jump to RM3,300 per metric tonne.

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