WORLD: Sime set to be major rubber producer

Sime Darby Bhd is poised to be a significant global rubber producer following its plan to develop almost 100,000 ha of rubber estates in Malaysia, Indonesia and Liberia within the next few years.

The diversified conglomerate has identified some 30,000 ha of oil palm estates in Malaysia and 10,000 ha in Indonesia to be replanted with rubber trees. It also plans to plant 40,000 ha to 50,000 ha of new rubber estates in Liberia.

After a recent question and answer session with Sime Darby top management, Malaysia-based CIMB Research said in its latest report that the group is looking to convert more marginal and low-yielding oil palm areas, which were formerly rubber plantations, back to rubber estates.

“This is to optimize the yield from the land, which is better suited for rubber trees,” said the research unit, adding that the costs to replant rubber estates to maturity are similar to those of oil palm.

Currently, Sime Darby has 9,603 ha of rubber estates.

“If Sime Darby successfully plant 80,000 ha to 90,000 ha of rubber trees over the next few years, this could propel the group into becoming a significant rubber producer, with close to 100,000 ha of rubber estates,” CIMB Research added.

Source: Daily “The Star”, Kuala Lumpur; 19 Jan 2016
(Syed Rashid Ali, Karachi, Pakistan)