By MARK RAO / Pic By MUHD AMIN NAHARUL
SIME Darby Plantation Bhd (SD Plantation) has rebranded its downstream arm to Sime Darby Oils to expand its reach to new markets amid evolving global demands for palm oilbased products.
Sime Darby Oils will operate as a wholly owned subsidiary under the integrated palm oil plantation company and is involved in the trading, manufacturing and retailing of oils and fats products, palm oilbased biodiesel, nutraceuticals and other derivatives.
SD Plantation executive deputy chairman and MD Tan Sri Mohd Bakke Salleh (picture) said the rebranding exercise of the downstream business marks a “strategic milestone” in the future direction of the company.
“Our focus towards offering sustainably produced products and derivatives is now represented by a new single entity that encompasses our entire downstream business.
“Sime Darby Oils will allow us to continue meeting the evolving global demands and extend our reach to serve new customers,” he said in a statement yesterday.
The company’s downstream business, which serves as a core revenue and profit contributor to the group, is present in eight countries namely Malaysia, China, Netherlands, the UK, South Africa, Thailand, Indonesia and Papua New Guinea.
SD Plantation COO (downstream) Mohd Haris Mohd Arshad said the introduction of Sime Darby Oils demonstrates the company’s goal to enable sustainable living with top-inclass oils and fats worldwide.
“Our aim is to occupy a sustainable quality, integrated and innovative position by reinforcing trust, as well as focusing on human lives,” he said in the statement.
Mohd Harris added that this objective is reinforced by the Sime Darby Oils’ new tagline, “Realising Possibilities, Together”.
“It signifies that we are focused on achieving quality excellence and becoming a trusted partner to all our customers by committing to deliver innovative and future-focused solutions, as well as being a leader in developing and promoting sustainable practices,” he said.
In the meantime, SD Plantation also intends to leverage on the immense potential for growth in the downstream sector of Malaysia’s palm oil industry via Sime Darby Oils.
Malaysia contributes 29% of global palm oil production and 33% of the world’s palm oil exports. The palm oil industry itself contributed RM44.8 billion or 3.8% of the country’s GDP in 2017.
The performance of SD Plantation’s downstream business mitigated the company’s 83.2% year-on-year decline in net profit to RM244 million for the six-month period ended Dec 31, 2018 as turnover sank 14.3% to RM6.54 billion over the same period.
This was largely due to lower average realised prices for crude palm oil (CPO) and palm kernel which were offset by the downstream contributions from higher sales volume and margins for its Asia-Pacific market.