Oil Palm Production Cycle (Up-Stream)
The Palmeco Group Co. Ltd. with all its group companies is a well integrated oil palm company with complete up-stream oil palm production cycle.
Its businesses cover from land clearing or replanting fleets to nursery plantations that preparing for the oil palm estate plantations to the management of its oil palm plantations to the output production of fresh fruit bunches from its plantations until the transportation of its output of fresh fruit bunches to palm oil mills.
Land Clearing / Replanting Nursery Plantation Transportation to Mills
OIL PALM PLANTATION
Palmeco Group Co. Ltd. with oil palm as its core business has an approximate total of 13,261.9 hectares of land bank.
Under its investment company, Sinong Enterprise Sdn Bhd (SESB), Palmeco group has its oil palm plantation company, Sinong Pelita Matu Sdn Bhd (SPMSB), with 2 pieces of estate plantations in Mukah, Sarawak, East Malaysia. In 2006, SESB has joint venture with Pelita Holding Bhd & Yayasan Sarawak Bhd, companies under Sarawak government to open 2 lots of lands with a land size of around 4,261.9 Hectares into oil palm plantations. These land bank consisting of 2 matured estates namely Igan estate and Matu estate in Mukah, Sarawak.
Palmeco Group also manages the MCL Sarawak State land comprising of Koperasi and individual native lot which brings to a total of 9,000 hectares of land. These new estates lands are Likau estate, Sikat estate and Jemoreng estate that will be clear for oil palm planting in the year 2017.
The Group has envisioned expanding its land bank with joint venture estates in the next coming 3 years that will brings to a total of additional 50,000 hectares of land under the management of the company.
Currently, SPMSB produces Fresh Fruit Bunches (FFB) from its existing palm oil plantations (4261.9 HA) with an output of 70,000 MT of FFB per year. This production will be hitting its maximum capacity of 80,000 MT of FFB per year in the next two years to come when both plantations reach their maturity.
This supply of FFB to the palm oil mills currently is running at a production output rate of 70,000 MT per year, generating yearly sales revenue of RM36,995,000 at a rate of RM528.50 per metric ton.
By the year 2020, the Group will have an approximately 1,000,000 MT of FFB per year from its 63,000 HA of oil palm plantation with estimated yearly revenue of RM 500,000,000.
OIL PALM TRADING
Palmeco Group has ventured into the fresh fruit bunch (FFB) dealer sub-sector which is part of the Malaysian palm oil supply chain. It is inter-related with other sub-sectors either directly or indirectly. It serves as an intermediary between the smallholders and the millers.
Its oil palm trading companies are Kian Hong Sawit Sdn Bhd and Kian Hong Plant Sdn Bhd with 4 collection centres and depots with weighbridges around Melaka and Negeri Sembilan state to trade FFB as FFB need to be efficient traded so that the FFB sent to the mills within 24 hours after harvesting remain in good quality that may affect the efficiency of the other sectors, especially the mills as well as the whole industry. In return, the smallholders will also benefit as they will be able to receive a higher income due to an improved supply chain in the industry.
These depots have traded approximately 72,000 MT of FFB per year which generated yearly sales revenue of around RM 38,000,000.
In due course to the expanding palm oil mills, the Group has envisioned expanding its oil palm depots to include additional 10 more depots with joint venture and merging in the next coming 3 years. This will brings an additional 360,000 MT of FFB per year under the group company.
By the year 2020, the Group will have traded an approximately 500,000 MT of FFB per year from its 14 oil palm depots with estimated yearly revenue of around RM 250,000,000.
Palmeco Group Co. Ltd. has a full team of oil palm management teams that also has its own fleet of machineries for land clearing and planting of idle land for new oil palm plantation and replanting for existing oil palm plantation or conversion from other crops. Our replanting company, Sagil Plant Sdn. Bhd. uses sustainable practices to ensure that the environment and biodiversity are not harmed by cultivation of oil palm plantation through the adoption of Good Agricultural Practices (GAP).
Under the fleet of machineries we have:
Excavator – 16 Units
Bulldozer – 2 Units
Shower – 4 Units
Lorry – 10 Units
Truck – 3 Units
For replanting, we practices zero burning. The old palms are pushed over, shredded and left to decompose in site. There is therefore, no air pollution from burning the old palms and, most importantly, in the old crop are recycled into the new.
Palmeco Group Co. Ltd. has a fleet of lorries and trailers under its Sri Kuala Sdn Bhd and Kian Hong Plants Sdn Bhd companies. We pride ourselves in outstanding services to all our customers. Our customers can count on us for reliability, dependability, efficiency and on time delivery.
We provide transporting of FFB for plantations to our FFB collection depots or palm oil mills requested by our customers. We also transport palm oil products from palm oil millers to their customers whenever required after delivered of FFB to their mills.
We also have trucks to transport fertilizer and pesticide to buyers, and a warehouse to store our inventory.
To ensure the smooth operation of our transportation business, we also have our own workshops with team of foreman and mechanics to do in-house repairing and maintenance to ensure that our lorries and trailers are always in great conditions.
We have strict rules and regulations for the lorry drivers and our workshops team to follow to ensure that they will not stress the vehicles and to have a proper and timely maintenance as schedule.
PALM OIL MILL
Palmeco Group Co. Ltd. as a company with large-scale plantation areas, see the need to have an oil palm mill to process the FFB is seen as an important investment for the company. Sinong Pelita Oil Mill Sdn Bhd, located in Matu estate, will be built in 2017 and to start operation in 2019. This factory is capable in processing as much as 60 metric tons (MT) of FFB (fresh fruit bunches) per hour.
The Group has envisioned including additional 5 more palm oil mills with merger and acquisition in the next coming 3 years which brings to a total of additional 300 MT of FFB per hour under the management of the company.
These factories are to accommodate the increasing quantity of FFB and also to deal with new FFB supplies from the opening of new estates and acquisition by the group.
The group will establish to manage all its mills based on MS ISO 9001:2000 which cover aspects such as Obtainment and Processing of Palm Fruits to produce crude palm oil and palm kernel. This system is important in order to guarantee products that have good quality and falls within the industry standards before being sold and dispatched to the purchasers.
By the year 2020, the Group will have an approximately capacity of processing 2,160,000 MT of FFB per year from its 6 palm oil mills with estimated CPO output of 928,000 MT and yearly revenue of RM 2.136 billions.
Information and communication technology
ICT SOFTWARE MANAGEMENT
Palmeco Group Co. Ltd. knowing with its wide range of businesses also involved in ICT business under its company known as I-Access Solution Computer Specialist Sdn Bhd, IAS, which was registered and commenced business on November 24, 1999. IAS is a company principally involved in computer system development, e-commerce solution, system maintenance and consultation services with hardware and software provider related to Information Technology industry.
The main factor contributing to the establish of IAS is its total commitment towards providing an effective and result oriented solution and competitive products which provide uncompromised after-sales support and services to all its customers.
The principal business activities of IAS are System Development and System Integration, E-commerce solution provider and
System Development and System Integration
Core program analysis
Programming and debugging
Software quality assurance
E-commerce Solution Provider
Website designing and hosting
E-commerce hardware and software configuration
ICT Outsourcing and Software and Hardware Provider
System administration and maintenance
Network consultation and implementation
Server and work-station installation
ICT department outsourcing
ICT Hardware and software support
Palm Oil Management System
Under its development division, IAS developed the palm oil management system, POMs, which is a total integrated palm oil management system for the palm oil industries. It is the premier palm oil management solution because it’s affordable, ease of use and short implementation and realization time.
IAS POMs solution is a Blueprint for palm oil industries Best Practices. It consists of ready templates with a fast deployment of 12-14 weeks.
IAS is the biggest Malaysia palm oil management solution provider for private palm oil miller industry sector. Plus POMs offers the most comprehensive set of features available and can be purchased and implemented in modular. IAS POMs is a total integrated system with IAS Weighbridge module that is integrated with other sub modules such as Store Maintenance, Payroll and Account modules into a seamless Management System that is useful for the management to manage their company.
In viewing of the continuing improvement coverage of Internet throughout Malaysia, the company is planning at converting its IAS POM system into web based in the next 3 years. These web based systems enable link from all its relevant modules to inter-change data between suppliers, customers, government bodies and banks.
With these inter-changes of data, IAS will then develop its relevant modules to incorporate financial technology (FinTech) using new technology and innovation to leverage available resources and customers in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services.