Tomorrow starts here
2010 was another eventful year for the Kulim Group. With a firm foundation, Kulim continue to perform at the highest level with enthusiasm and energy.
For Kulim, profits are much higher than last year’s, driven by expansion into Papua New Guinea (PNG), the rally in palm oil prices, the onetime income from the sale of the oleochemicals business, and strong growth at the Foods & Quick Service Restaurants Division. Kulim derives about 72% of its Profit Before Tax (PBT) from the plantations business in Malaysia as well as PNG, operated via the London-listed unit New Britain Palm Oil Limited (NBPOL). The remainder comes from Foods& Quick Service Restaurants business via QSR Brands Bhd, which licenses fast-food chains including Pizza Hut and K FC.
CORPORATE DEVELOPMENTS (KULIM)
Transparent corporate communications and open dialog provide the basis for information to Kulim stakeholders and co-operation with the media. Kulim were honoured to be conferred as Winner of the Best Sustainability Report and Commendation for Reporting on Strategy and Governance at the ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2010. And for the 3rd consecutive year Kulim were the proud winner of the NACRA 2010, Industry Excellence – Plantations and Mining (Main Market) award for the 2009 Annual Report.
Kulim is keen to expand its oil palm planted area, and new estates are of interest if they can fit in with the Round Table on Sustainable Palm Oil (RSPO) principles. In PNG, NBPOL’s successful acquisition in April 2010 of 80% of CTP (PNG) Limited, now known as K ula Palm Oil Limited (KPOL), added another 26,295 hectares of established oil palm plantation together with 5 palm oil mills.
With biofuels facing difficult challenges and an uncertain future, Kulim resolved to restructure their investment by exiting from the joint venture in Singapore. In April 2010, Kulim transferred 49% equity interest in Nexsol (S) Pte Ltd to Peter Cremer (Singapore) GmBH (Peter Cremer) and Peter Cremer agreed to transfer its 49% equity interest in Nexsol (M) Sdn Bhd to Kulim. Post the equity swap, Nexsol (M) Sdn Bhd, became a 100% subsidiary of Kulim while Nexsol (S) Pte Ltd ceased to become an associate.
SUSTAINABLE PALM OIL
The Round Table on Sustainable Palm Oil (RSPO) was formed in 2004 with the objective of promoting the growth and use of sustainable palm oil products through credible global standards and the engagement of stakeholders. The RSPO standards are put in place to ensure that no primary forests or any other high conservation value areas are cleared for new oil palm plantations. It also aims to minimise the environmental footprint as well as preserve the basic rights of local landowners, farm workers and indigenous people.
