FGV Corporate Brochure - Felda Global Ventures

FELDA GLOBAL VENTURES
HOLDINGS BERHAD
(800165-P)
Level 45, Menara Felda
Platinum Park, No. 11, Persiaran KLCC
50088 Kuala Lumpur, Malaysia
T +603 2859 0000
F +603 2859 0016
E [email protected]
INVESTOR RELATIONS
Level 25, Menara Felda
Platinum Park, No. 11, Persiaran KLCC
50088 Kuala Lumpur, Malaysia
T +603 2859 0000
F +603 2859 0016
E [email protected]
MEDIA RELATIONS
Level 42, Menara Felda
Platinum Park, No. 11, Persiaran KLCC
50088 Kuala Lumpur, Malaysia
E [email protected]
feldaglobal.com
All facts & figures contained herein are
accurate at time of print on 05 June 2015.
Ingenuity
Incorporated
Felda Global Ventures Holdings Berhad (FGV) is a global, diversified and sustainable
integrated agri-business leader, dynamically advancing to lead as a top 10 global player
by 2020.
Incorporated in Malaysia in 2007, FGV progressed into a diverse agri-business company
and rapidly established itself as Malaysia’s leading global agri-business player.
Today we are the world’s largest producer of crude palm oil (CPO), a leader in Malaysia’s
sugar industry and a pioneer of cutting edge green technologies, anchored by a 18,000
strong workforce and a global integrated supply chain able to add value to every
endeavour.
VISION
MISSION
To be the leading globally
diversified integrated
agri-business
To be a global leader by:
❙ Creating value through our human capital
❙ Championing our locally invested culture
❙ Building an integrated value chain
advantage
❙ Cultivating diversification in commodities
and geography
OUR GLOBAL PRESENCE
Our overseas footprint spans the globe, with operations in more than 10 countries
France & Spain
China(1)
• 2 trading offices*
• 2 refineries*
• 1 bulking installation
Canada
Turkey
Thailand
Cambodia
• 1 canola &
soybean crushing
& refining facility
• 1 refinery*
• 1 rubber processing
facilities
• Distribution of
packed products
USA
• 1 oleochemical
plant
Malaysia
Pakistan
• 1 refinery
#
•
•
•
•
•
•
•
•
•
•
370,922 ha of oil palm plantation
71 mills
5 crushing plants
7 refineries
1 oleochemical plant*
15,429 ha of rubber plantation
8 rubber processing facilities
2 sugar refineries
4 bulking installations
7 transport hubs
Indonesia
• 56,422 ha of oil palm
plantation
• 1 refinery*
• 12,844 ha rubber plantation
• 1 rubber processing facility
• 1 bulking installation
PLANTATIONS
BULKING INSTALLATIONS
CANOLA AND SOYBEAN
SUGAR FACILITIES
REFINERIES
SALES & MARKETING
OLEOCHEMICALS
RUBBER MANUFACTURING
NOTES
1) China’s refineries consist of 2 palm oil refineries and 1 downstream processing facility * Joint-ventures
#
Associates
Philippines
• Distribution of
packed products
DISTRIBUTION OF BULK PRODUCTS
AN EXPANDING
PRESENCE
Felda Global Ventures Holdings
Palm Upstream
Berhad (FGV) operates under six main
business Clusters: Palm Upstream, Palm
Downstream, Rubber, Sugar, Research &
Palm Downstream
Development (R&D) and Agri-Services, and
Trading, Marketing and Logistics (TML).
Rubber
With operations in more than 10 countries
across North America, Europe, Asia and the
Middle East, FGV aspires to be one of the
Sugar
top 10 agri-business conglomerates in the
world by 2020.
Research &
Development (R&D)
and Agri-Services
Trading, Marketing
and Logistics (TML)
FGV’s progression towards becoming one of the world’s leading agri-businesses by the year 2020 will open up global possibilities
and potentials through our agri-business solutions. With world class technology and the passion of more than 18,000 talents.
FGV strongly holds to the belief that the future of the Group is shaped and determined by its people.
By 2020, FGV aims to become a top 10 globally diversified and integrated agri-business. To drive this forward, we have developed
the Global Strategic Blueprint (GSB), which outlines our strategic priorities to achieve this bold objective. We recognise and
understand that further significant growth will be driven by seven key areas. These areas are the ‘pillars’ of the GSB.
To Become a Top 10 Globally Diversified & Integrated Agri-business by 2020
Strategic
bets in
adjacent
crops
Top 5
in rubber
Top 10
in sugar
Top 5
in palm
Global
top 3 in
industrial
fats
SEA and
South Asia
top 5 in
Palm CG
Significant position in new geographies – Major consumption centers
M&A to build winning positions – throughout the value chain
Global supply chain to defend upstream
High performance culture
R&D technology incubators
Optimise
oleo
chemical
position
Winning New Business
The combination of innovative solutions,
production and manufacturing footprint, and
engineering capability; enables us to win new
business by offering solutions for our customers
Investment in
Human Capital
Values
Delivering High-Quality Services
& Products
We deliver high-quality services & products to
the right place, at the right time, strengthening
customers and stakeholders relationships and
creating strong financial returns
Sustainability
Applying Lean Production
A safe working environment and continuous
improvements in our production processes,
through efficient use of resources with minimal
environmental impact are key focus in our
plantations and facilities around the world
Operational
& Service
Excellence
Maintaining Strong Relationships
Continuous relationship building with customers,
acquiring market intelligence and understanding
of market trends which then informs our
investment decisions
World Class
Research &
Development
Driving Future Growth
Global
Footprint
With years of strong accumulated agricultural
experience, an actively managed “bank”
of assets and pipeline of development
opportunities are key drivers of future growth
BUSINESS
MODEL
Completely
Integrated
Value Chain
Shareholder
Return
Long-term shareholder
value is provided in
the form of steadily
growing earnings and
dividends
High Governance and Risk Policy
Corporate
Social
Responsibility
We have created and are maintaining a robust
internal control and reporting environment,
with strong process for risk identification
and mitigation, implemented by a dynamic
management team and overseen by an
experienced Board of Directors
ACTIVATING
SUSTAINABILITY IN ALL WE DO
ROUNDTABLE ON SUSTAINABLE
PALM OIL (RSPO) CERTIFICATION
As a founding member of the RSPO, FGV has
played an active role in promoting sustainable
practices via the guidelines since its inception in
2004.
FGV was among the first agricultural companies
to obtain the mill certification in 2010; and
the first in the world to organise a smallholder
group to obtain the RSPO Fresh Fruit Bunch (FFB)
Certification. In the process of certifying our
mills, we also certified about 40,000 associated
smallholders. Although we had initially targeted
to complete auditing our mills by 2017, we made
such rapid progress that we are on track to
complete the task by 2015.
Apart from the mill and FFB certifications, we
also certified four of our kernel crushing plants,
one refinery and a biodiesel plant to RSPO’s
Supply Chain Certification System (SCCS).
INTERNATIONAL
SUSTAINABILITY AND CARBON
CERTIFICATION (ISCC)
The Group is diligently pursuing the
International Sustainability and Carbon
Certification (ISCC), which is the first
international certification system that can be
used to prove sustainability and greenhouse gas
(GHG) savings for biomass and bioenergy. ISCC is
oriented towards reducing GHG emissions, the
sustainable management of land, the protection
of natural biospheres and social sustainability.
To date, we have obtained ISCC for 15 mills and
a biodiesel plant. The achievement signifies
that, apart from being sustainable, FGV’s palm
oil production system is contributing towards
mechanisms to reduce global warming based on
standards set by the European Commission.
MALAYSIAN SUSTAINABLE PALM
OIL (MSPO) CERTIFICATION
MSPO is similar to the RSPO and ISCC but takes
into consideration the national socio-economic
agenda – focusing particularly on developing
marginalised local communities – while adhering
to all local, national and ratified international
laws and treaties. FGV has been actively involved
in developing the standard, and is among the
few plantation companies to volunteer to pilottest it.
GOOD AGRICULTURAL
PRACTICES (GAP) AND GOOD
MANAGEMENT PRACTICES
(GMP)
The sustainability of our businesses is
interdependent with the sustainability of
the ecosystem surrounding our operations.
We have been implementing a number of
Good Agricultural Practices (GAP) and Good
Management Practices (GMP) to ensure
the efficient use of natural resources hence
safeguard the long-term productivity of the land
that we cultivate. We are keen advocates of
zero-burning, implementing Leguminous Cover
Crop (LCC) and Integrated Pest Management
(IPM). We also employ science-based nutrient
management and enrich the soil with organic
fertilisers as well as beneficial microorganisms as
standard practices in all our oil palm plantations.
RESEARCH AND DEVELOPMENT (R&D)
BIODIVERSITY
FGV has invested in strong R&D support services and have
reaped the benefits of high-yielding plant materials as well
as technological advances to enhance operations. Our seeds
are of such high quality that we have led as the market
leader in oil palm seed production and sale for over five
years. We have also invested in the latest technologies to
assist us in selecting materials with specific traits; and use invitro propagation for mass production in our state-of-the-art
laboratories. We have more than 100 researchers working
on R&D applications for both upstream and downstream.
FGV has committed to not undertake any new developments
in primary forests, on land containing one or more High
Conservation Values (HCVs) and areas with significant
peat. When there is suitable land for development, we
ensure due protection is given to the existing biodiversity,
cultural heritage and customary land use. At the same
time, we uphold the principles of free, prior and informed
consent with the local communities before developing the
land. Further protecting the nation’s flora and fauna, we
regularly organise Conservation Awareness Programmes
with the Wildlife Department and non-governmental
organisations (NGOs) and have signed memorandums of
understanding (MoUs) on several initiatives such as securing
biodiversity corridors, Rafflesia conservation and sun bear
research. Together with governmental institutions, NGOs
and institutions of higher learning, we are also conducting
research on effective conservation methods, especially for
endangered plant and animal species.
PROTECTING WATERWAYS AND
RIPARIAN RESERVES
The commitment of all our plantations in safeguarding
the quality of rivers has led to positive results. In 2014,
our Sustainability Department analysed the water quality
in 41 out of 51 major river systems passing through our
plantations in selective regions and found no significant
deterioration. Since 2013, we have checked a total of
76 river systems, all with positive results.
Whilst ensuring cleaner rivers, widened riparian reserves
also add to our wildlife corridor initiative in Sabah. We plan
to establish a network of forest corridors to enable large
mammals such as the Bornean elephant and orangutan to
migrate safely between key forest habitats. Towards this
end, we are also involved with BCT and the Sabah Wildlife
Department to secure a mega biodiversity corridor in the
Lower Kinabatangan region, which FGV will contribute
a sum of approximately RM1.7 million over five years
to the joint venture. The five-year project is a first of its
kind to create a mega biodiversity corridor in the lower
Kinabatangan basin. Another key aspect of the project is
to provide a sustainable alternative livelihood for the local
communities living along the Kinabatangan River, through a
community homestay programme.
CLIMATE CHANGE AND MANAGEMENT
OF GHG EMISSIONS
As planting on peat is perceived to contribute to GHG
emissions, FGV made a commitment on 16 June 2014 to
not develop any new area significant in peat. FGV is also
committed to reducing GHG emissions through operational
approaches such as methane capture, bio-composting and
the cogeneration of electricity from methane released by
palm oil mills effluent (POME). We convert waste from our
plantations and mills into biogas whilst producing palm
oil-based methyl ester (PME) for use in biodiesel.
Our 1.2MW biogas capture plant in Felda Umas in Tawau,
generates electricity for 3,000 households in our settlement,
where the 15,000 residents previously depended on
electricity from diesel-powered generators. In Maokil,
we successfully connected a 1.0MW biogas power plant to
the national grid. Our stand-alone Sahabat Biomass Power
Plant, which supplies clean steam energy and electricity
to neighbouring industrial installations, offices, a resort
and residential area, delivers the equivalent of more than
3,500 tons of CO2. This plant will soon be complemented
by our second large scale stand-alone biomass power
plant in Jengka 9, Pahang. The 12.5MW Jengka Advanced
Renewable Energy Plant consumes 320,000 tonnes of
biomass annually and is expected to feed the national grid
in 2015.
In terms of biodiesel, we made a significant breakthrough
when we successfully powered three oil tankers on a total
of 1,200km shuttle route with B30 biodiesel (consisting of
30 percent PME and 70 percent conventional carbon-based
diesel) from our FGV Transport depot in Gebeng, Kuantan to
our palm oil mill in Bukit Sagu, Pahang.
The Government currently requires biodiesel blends to
have at least 7 percent PME content. Our PME content,
which is more than four times higher than this minimum,
demonstrates our willingness to go beyond statutory
standards in our commitment to operate in the most
environment-friendly and sustainable manner.
STRIVING FOR
EXCELLENCE
IN SAFETY &
HEALTH
FGV places the highest importance on the safety and
health of all our employees and workers at all our offices,
plantations, mills, depots and other operations. We
recognise that our performance depends on our people,
and that their safety as well as well-being is paramount
to maintaining a high level of productivity.
STRATEGIC HSE FRAMEWORK
Our HSE framework is in line with global best practices and provides a robust calendar of activities - meetings, site visits, workplace
inspections, audits, training courses, investigations, events, campaigns – at both head office, regional centres and operational
workplaces all year round.
ESCALATING SAFETY STANDARDS
FGV’s aspires to emulate the safety standards in the oil and gas industry. In this respect, we make every effort to comply with all
statutory requirements. Many of our subsidiary companies also have obtained the Occupational Health and Safety Assessment Series
(OHSAS) 18001:2007 certification.
IN-HOUSE CAPACITY BUILDING PROGRAMME
FGV has 34 Safety and Health Officers (SHO) who are registered with and have been certified competent by Department of
Occupational Safety and Health (DOSH). This is close to our target of having one safety professional for every 500 employees.
SAFETY OUTREACH PROGRAMMES
FGV is the first public sector company to implement Komuniti Sihat Perkasa Negara (KOSPEN) to reduce the incidence of Non
Communicable Diseases such as heart problems, strokes and diabetes. The health screening and early intervention programme
involves 3,000 employees, workers and settler families. FGV is also one of 16 companies nationwide selected to spearhead the
Ministry of Human Resources’ OSH-in-Schools programme under its OSH Master Plan 2015. The programme pairs one school and one
mentor-organisation per state to introduce OSH practices in schools as well as integrating it into their learning modules.
ONLINE ACCIDENT MONITORING
Towards realising Zero Fatality at some 250 operational premises across Malaysia, FGV has an online accident reporting system to
enable faster data input and comprehensive monitoring of incidents at our estates, mills, facilities and depots.
SAFETY IN EMERGING TECHNOLOGIES
In the area of green technologies, FGV is working closely with the Department of Occupational Safety and Health to develop the
National Biogas Safety Policy and Guidelines.
RUBBER
PALM
DOWNSTREAM
PALM
UPSTREAM
Felda Global Ventures Holdings Berhad (FGV)
❙ Felda Global Ventures Plantations
Sdn Bhd
❙ Felda Global Ventures Downstream
Sdn Bhd
❙ Felda Global Ventures Rubber
Sdn Bhd
❙ Felda Global Ventures Plantations
(Malaysia) Sdn Bhd
❙ Twin Rivers Technologies Holdings,
US
❙ Felda Rubber Industries Sdn Bhd
❙ PT Citra Niaga Perkasa
❙ TRT ETGO
❙ Pontian United Plantations Bhd
❙ FGV Biotechnologies Sdn Bhd
❙ Felda Palm Industries Sdn Bhd
❙ Felda Kernel Products Sdn Bhd
❙ FNI Biofuel Sdn Bhd
❙ Delima Oil Products Sdn Bhd
❙ PT Temila Agro Abadi
❙ Felda Vegetable Oil Products
Sdn Bhd
❙ Asian Plantation Limited
❙ Trurich Resources Sdn Bhd ^
❙ FTJ Biopower Sdn Bhd ^
❙ Kuala Muda Estates ^
^ JV or Associated company
❙ Felda Global Ventures Cambridge
Nanosystem Limited
❙ FPG Oleochemical Sdn Bhd ^
❙ Felda Iffco Sdn Bhd ^
❙ Feltex Co Ltd
❙ PT Felda Indo Rubber
❙ FGV CVC (Cambodia) Co Ltd
TRADING,
MARKETING &
LOGISTICS
R&D AND
AGRI-SERVICES
SUGAR
BUSINESS CLUSTERS
❙ Felda Global Ventures Sugar
Sdn Bhd
❙ Felda Global Ventures R&D
Sdn Bhd
❙ MSM Holdings Bhd
❙ FGV R&D and Agri Services Sdn Bhd
❙ MSM Prai Bhd
❙ FGV Applied Technology Sdn Bhd
❙ MSM Perlis Sdn Bhd
❙ Felda Agricultural Services Sdn Bhd
❙ MSM Logistics Sdn Bhd
❙ FPM Sdn Bhd
❙ Felda Holdings Bhd
❙ FGV Trading Sdn Bhd
❙ Felda Marketing Services Sdn Bhd
❙ Felda Johore-Bulkers Sdn Bhd
❙ Felda Transport Services Sdn Bhd
❙ Langsat Bulkers Sdn Bhd
❙ Felda Bulkers Sdn Bhd
❙ Felda Grains Terminal Sdn Bhd
❙ PT Patisindo Sawit Sdn Bhd
❙ F.W.Q. Enterprises (Pvt) Ltd
Going green
Sustainability is the way forward at
FGV. We engage in best practices,
meet world standards and innovate
green initiatives throughout our
upstream operations. As the world’s
3rd largest oil palm estate operator,
we commit to advancing a greener
future.
Producing world class certified
crude palm oil with sustainability
and reliability
Palm Upstream Cluster is FGV’s largest revenue earner and
forms the core of the company. With a total land bank of
more than 450,000 hectares, Palm Upstream is responsible
for FGV’s status as the world’s largest CPO producer which
produces more than three million tonnes of CPO annually.
Palm Upstream Cluster forms the core of FGV and is our
largest revenue earner. It is also the foundation for
FGV’s global growth.
FGV is the world’s third largest oil palm
estate operator, managing more than
450,000 hectares across Malaysia and
Kalimantan, Indonesia.
We process over 15 million tonnes of fresh
fruit bunches (FFB) annually; 5 million tonnes
from our own plantations, the balance from
FELDA settlers and independent suppliers.
We also output 3 million tonnes of crude
palm oil (CPO) annually from 71 palm
oil mills, more than any other producer
worldwide, making us the world’s largest
producer of CPO.
In Malaysia, the largest plantations are
located in Pahang and Sabah. FGV owns
Pontian United Plantations Berhad (PUP)
which operates 15,161 hectares of oil palm
plantation in Sabah.
In Indonesia, FGV’s activities are focused in
Kalimantan through PT Citra Niaga Perkasa,
a company that owns 14,385 hectares of
land. Through our subsidiaries PT Temila
Agro Abadi and PT Landak Bhakti Palma,
FGV owns another 21,037 hectares of land in
West Kalimantan.
Continuous expansion initiatives are
embarked on to secure CPO and feedstock
supplies for our downstream objectives.
To date, FGV is at the tail end of upgrading
all its mills to meet RSPO and other relevant
world-class certification.
KEY GROWTH TARGET:
FGV is on track to have the world’s largest
land bank by 2020 and maintain its status as the
world’s top CPO producer
As the world’s largest CPO producer and
third largest oil palm operator, we are
already well placed in the industry globally.
Aligned with our efforts to drive continuous
improvements in our plantations, we are
rolling out best management practices. For
example in harvesting and pruning, we are
encouraging the use of new tools such as
graphite harvesting poles and innovative
ablation methods and tools.
New technologies such as Unmanned Aerial
Vehicles (UAV) and a tablet-based Plantation
Micro-Macro Programme (PMMP) will allow
us to enhance estate management. These
innovations assist us to monitor and improve
efficiency and productivity in the field and
increase FFB yield, while giving us the edge
over those that are using traditional farm
management practices.
Furthermore, having embarked on an
aggressive replanting programme in 2007
we can expect that by 2020, we will achieve
our target of 60 percent prime palm land
thereby improving our yields significantly.
We are expanding our landbank by acquiring
brownfield plantations both within Malaysia
and abroad.
PALM UPSTREAM
Fruitful potential
In terms of versatility, oil palm is the
cream of all crops. Other than oils
and fats, it can blend biodiesel to
fuel lorries, buses and power stations.
We can extract Vitamin E for use in
nutraceuticals. Then we can innovate
Carbon nanotubes and Graphene
to revolutionise diverse industries
– including the manufacturing of
tennis racquets.
Pioneering breakthrough palmbased products for new markets
in high growth sectors
Palm Downstream Cluster safeguards the upstream operations by
providing a guaranteed uptake of CPO for palm-based downstream
activities which include oleochemicals, biodiesel, oils, fats and fast
moving consumer goods (FMCG).
Leveraging on his secured pipeline of CPO feedstock, we are able
to advance and expand the potential of palm oil by producing
innovative and wider profit margin products such as Tocotrienol,
Graphene and specialty fats and other palm based derivatives. These
have paved our way into new market segments in the high growth
sectors of Aviation, Oil & Gas, Cosmetics and Food Application.
Since its establishment, the Palm
Downstream Cluster has achieved continuous
milestones, and the momentum continues.
consumer products including instant noodles,
mayonnaise, creamer, vanaspati and peanut
butter.
Today, it is a market leader in the biodiesel
industry with a biodiesel refinery in Malaysia
that produces certified Palm Methyl Ester
for local and international markets such as
Europe, United States and China.
Via strategic investment in Twin Rivers
Technologies-US, FGV’s fully owned
subsidiary in the United States; and existing
homegrown Felda Procter & Gamble (FPG),
a joint venture, a with Procter & Gamble in
Malaysia, FGV is optimising an increasingly
viable oleochemical business.
Its Saji-branded cooking oil has successfully
penetrated the cooking oil market in
Myanmar, Philippines, Laos, Cambodia,
Vietnam and Afghanistan. The specialty
fats and FMCG product line continues to
grow with the introduction of a variety of
Through FGV Cambridge Nanosystems
Limited (FGV CNS), FGV currently produces
high technology products based on
carbon nanotubes for super high strength,
lightweight, high conductivity applications
in electronics, aeronautical, oil & gas and
automotive industries.
FGVD has entered into a joint venture
with Lipidventure Sdn Bhd (LVSB) in
producing Tocotrienols (Vitamin E). Capable
of producing 75,446 kg of high quality
Tocotrienols per year, the new purification
plant at Kuantan integrated Biopark is
expected to be the largest plant of its kind
in Malaysia once operations start in 2016.
Products will be marketed to countries like
U.S, Japan, Australia, China and India.
Higher end products like Tocotrienol capsule
and Tocotrienol products for food and
beverage industries are also in the pipeline.
KEY GROWTH TARGET:
FGV aims to steadily strengthen its
market share in the global oleochemicals,
oils and specialty fats and FMCG markets
Palm Downstream Cluster strives for a
leading position globally in industrial fats
and regional heavyweight status in palmbased consumer goods. We are also pursuing
a significant market share in the biodiesel
and renewable energy market globally.
Our portfolio of consumer goods continues
to grow: by both adding to our alreadypopular products in Fast Moving Consumer
Goods (FMCG), as well as entering into new
arenas. Our staple products, Saji, Tiga Udang
cooking oils and Seri Pelangi margarine,
are now complemented by new brands such
as Sunbear peanut butter, Adela margarine
spread and Sajimee instant noodles.
We have also recently introduced a personal
care brand, Purich, on our journey to achieve
a top five position in Consumer Goods across
South East Asia and South Asia.
Moving forward, our downstream business
also aims to capture higher margins and
high-growth products in the specialty
ingredients segment and optimise our
oleochemical position by maximising our
position in the United States as the third
largest oleochemical producer in North
America (TRT US) and existing partnership
with Procter & Gamble (P&G) in Malaysia.
PALM DOWNSTREAM
Bouncing back
Malaysian rubber is back in fashion,
fast gaining favour with global
tyre manufacturers. In part, no
doubt, because it’s far superior to
its synthetic, petrochemical-based
counterpart, affording better grip in
the wet, less rolling resistance and
less noise, but mostly because it’s
completely renewable. Indeed,
driven by the promise of zero
pollution, our business is now on a
roll once more.
Stretching the potential of
rubber from upstream,
midstream to downstream
possibilities
FGV’s foray into the resilient rubber industry is part of our
crop diversification programme to rebalance our reliance
on palm oil. As processed rubber continues to enjoy a
growing global market, Rubber Cluster is poised to tap new
opportunities by expanding its operations and leveraging on
our strengths in the industry.
Rubber Cluster was conceptualised to
stepchange the trajectory of the Group’s
current rubber processing businesses into a
leading integrated rubber player. Led by FGV
Rubber Sdn Bhd (FGVR), Rubber Cluster has
made significant contribution to the natural
rubber industry backed by over 6 decades of
experience in upstream plantation followed
by ventures in the midstream segment.
In tandem with the Group’s business plan,
Rubber Cluster focuses on expanding
upstream land bank and processing capacity.
Plans to venture into the downstream
segment are also in the pipeline as Rubber
Cluster seeks to expand its presence across
the natural rubber value chain.
We currently manage a total of
approximately 14,000 Ha of rubber
plantation and operate 5 midstream rubber
processing facilities plus one specialised
processing facility for green rubber
production. Most of the raw material
sourced is from within the Group’s rubber
plantations.
Rubber Cluster also has overseas presence
with rubber processing facilities in Thailand,
Indonesia and Cambodia. In addition, we
have a strategic partnership in Myanmar to
explore opportunities of expansion both in
upstream and midstream.
KEY GROWTH TARGET:
FGV is on track to expand into more value
added midstream and downstream products and to
be a global processed rubber player by 2020
Given the increasing awareness and concern
for the environment, buyers are placing high
priority on ‘green’ products. After working
very closely with the Malaysian Rubber
Board (MRB) and various consultation
teams, Rubber Cluster has ventured into
commercialisation of Ekoprena™ and
Pureprena™ – two trademarked variations
of Green Rubber that have a host of diverse
market applications.
EKOPRENA™ is a form of Epoxidised Natural
Rubber and an established class of speciality
rubber. Its properties provide a good wet
grip, low rolling resistance and low noise,
it is ideal for use as tyre treads especially for
passanger cars and trucks. Being oil resistant
and gas permeable it is also ideal for
producing bladders, inner tubes, tyre lines,
hoses, seals, connectors and tubes.
PUREPRENA™ is a new generation of
Deproteinised Natural Rubber, produced
by treating fresh natural latex with an
industrial enzyme that hydrolyses all
natural-occurring proteins in the latex into
water-soluble forms. It is suitable for use in
hydromounts, large absorbers, suspension
bushes and helicopter rotor bearings. It also
has low water absorption and low protein
and ash contents; making it ideal for use in
underwater, medical, pharmaceutical
and food applications.
Having signed a Technology Transfer
Agreement with MRB to commercialise
Ekoprena™ and Pureprena™, Rubber Cluster
has started production of Green Rubber
at FGVR’s Palong 8 Processing Facility.
RUBBER
Sweet stuff
We’re the leading producer of refined
sugar in Malaysia, commanding more
than 60 percent market share. But
there’s more to us than mere size.
Quality wise, we’re the benchmark;
more than mere size, we offer a
consistency of grain size, colour and
moisture content few can match. Our
sugar, it is said, flows like water; a fact
that should work in our favour when
the output reaches 3.25 million tonnes
per annum come 2025.
Growing in presence from
Malaysia’s sugar leader to an
ASEAN trailblazer
Through its listed subsidiary MSM Malaysia Holdings
Berhad (MSM), FGV is the leading refined sugar producer
in Malaysia with almost two-thirds domestic market
share, involved primarily in the production of refined
sugar products, with an annual production capacity of
over 1.1 million tonnes.
MSM Holdings continues to expand and
optimise the businesses of its two operating
subsidiaries – MSM Prai Berhad (formerly
known as Malayan Sugar Manufacturing
Company Berhad) and MSM Perlis Sdn Bhd
(formerly known as Kilang Gula Felda Perlis
Sdn Bhd). These subsidiaries are pioneers
in Malaysia’s sugar industry having been
established in 1959 and 1971 respectively.
With global demand for sugar being driven
by double digit growth, FGV is expanding
its global presence through acquisitions and
joint ventures with regional powerhouses
and related businesses across the sugar
supply chain.
To date, FGV has taken steps to be in control
of the complete sugar value chain, venturing
into upstream and downstream activities
as well as the futures business. With these
drivers as well as the commencement of a
trading office in Dubai in second quarter of
2015, FGV’s sugar business will continue to
strengthen its competitiveness in domestic
and export markets, and move it closer
towards its goal of becoming Southeast
Asia’s premium sugar refining and trading
company.
KEY GROWTH TARGET:
FGV is poised to become ASEAN’s
largest Sugar hub and produce 3.25 million
tonnes of sugar per annum by 2025
Sugar Cluster is geared up for domestic and
global expansion and has boldly placed the
key growth focus on downstream expansion
to boost capacity building and to build a
strong value chain footprint. Our investment
in the set-up of the Dubai trading operation
will add a strong arm to establish our
own raw sugar trading business; while the
upcoming Johor refinery project will be set
to ramp production capacity to 3.25 million
tonnes of refined sugar per year, from the
current 1.1 million tonnes.
cost reduction initiatives, optimising asset
utilisation, and implementing improved
technologies from sourcing to production
chain; in logistics and distributions.
In the pursuit of operational excellence,
we have launched a performance excellence
programme for our employees as our anchor
initiative to develop a customer focus
mindset among all of our teams. This is also
a systematic approach to establish and to
sustain excellent performance at all levels.
While actively sourcing for further
opportunities, we are seeking better
operational efficiencies by focusing on
SUGAR
Future-focused
Vision. That’s what first inspired us
to set up an R&D and Agri-services
centre over 40 years ago. Today,
it is one of the largest of such
establishment for oil palm in the
world and has long pioneered
cultivation of world-class oil palm
planting materials. Our latest
research has produced a Ganoderma
fungus disease-tolerant palms that
can be grown in areas of high disease
incidence. As it gains acceptance,
we look forward to our next big idea.
Generating cutting-edge
technologies across all facets
of FGV
FGV’s world class R&D and Agri-Services
Cluster is anchored on four decades of
research and development. The Cluster’s
key objective is to generate cutting-edge
agri-business technologies to enhance
operational performance and commercial
utilisation across all facets of FGV.
The company’s award-winning Yangambi
oil palm planting material, which has
40 percent market share in Malaysia,
is just one of R&D’s innovative products.
The R&D and Agri-Services Cluster was
incorporated on 10 September 2014 to
consolidate over four decades worth of
research expertise towards becoming
a premier frontrunner in the oil palm
research. This has culminated in one of South
East Asia’s largest biotechnology centre,
specialising in production of oil palm clones
with specific traits. The centre is led by a
team of highly specialised scientists.
Its activities support internal growth across
all Clusters. These comprise improving the
yield of selected agri crops through breeding,
tissue culture agronomy, crop protection and
in a sustainable manner; optimising waste
and by-products for use in generating new
products with higher-growth, higher-margin
industries; and the provision of high quality
agro-based products and services.
R&D and Agri-Services Cluster focus in
bio-molecular marker research has led to
the pioneering of marker assisted oil palm
breeding and selection which will ensure that
its current award winning Felda Yangambi
brand continous to remain as a market
leader. An Applied Technology Division
was launched in 2014, to expand R&D and
Agri-Services Cluster focus on applying new
technologies such as electronics, wireless
sensor technology, geographical information
systems, remote sensing and automation and
mechanism of daily operations to improve
productivity and efficiency in FGV’s palm
operations.
Leveraging on the R&D and Agri-Services
Cluster initiatives, especially in our upstream
business, FGV intends to increase yield and
efficiency, reduce production costs, better
ensure environmental sustainability and help
increase profits over time.
KEY GROWTH TARGET:
R&D and Agri-Services Cluster will expand its
collaboration with both international and
local scientific communities in order to achieve its
goal to be the world’s pre-eminent R&D Centre of
Excellence for palm oil, by 2020
Through the introduction of new innovative
products to the market, FGV is creating
uncontested value for its products.
By inventing new high-end, niche products
such as Carbon Nanotubes currently and
green chemicals in the future, we continue
to create new market spaces.
In Palm Oil downstream for example, R&D
and Agri-Services Cluster helped to diversify
our portfolio of quality food and innovative
non-food products. Through Felda Global
Ventures Research & Development Sdn Bhd,
FGV is Malaysia’s premier oil palm seed
producer – supplying 40 percent of the
country’s annual seed requirements. FGV is
already at the forefront of R&D in oil palm
breeding biotechnology, tissue culture,
agronomy and crop protection.
Partnering with Cambridge Nanosystems
Limited, we produced the world’s first
high-grade Carbon Nanotubes and Graphene
– a ‘wonder material’ that is stronger
than diamonds yet more conductive than
copper. These unique properties are set to
transform manufacturing processes and the
performance of thousands of electronics and
consumer goods in the near future.
RESEARCH & DEVELOPMENT AND AGRI-SERVICES
Fast-tracking
The Trading, Marketing and Logistics
(TML) Cluster fortifies FGV’s Trading
& Marketing arm’s aspiration to
accelerate vegetable edible oils and
fats transactions. Set to be a major
revenue contributor to the Group,
Trading & Marketing’s activities are
enablers of TML Cluster logistics
and storage support services across
the business chain and advances the
Group as a globally diversified agrocommodity player.
Driving efficiency across the
entire organisation through
integrated supply chain support
TML Cluster is a profitable, multi-billion ringgit operation and is
tasked with connecting and controlling the flow of assets across
FGV’s businesses via 3 main sub-clusters of Trading, Marketing and
Logistics. The profitable, multi-billion ringgit operation possesses the
world’s largest bulking and storage facilities for vegetable edible oil.
It is further tasked with connecting and controlling the flow of assets
across FGV’s businesses, driving group-wide efficiencies.
The Trading & Marketing (TM) business is the
lead revenue contributor to the TML Cluster,
able to generate high volume of external oil
trading to established and new markets. On
the logistics front, we are embarking on end
to end logistic as a high value Multimodal
Transport Operator (MTO) and exploring an
asset-light approach to maximise our bottom
line wherever possible. Storage complements
the Group’s Logistic and Trading activities,
locally and overseas.
TML Cluster is now transforming as the
growth engine of the FGV flagship; thrust
forward by strategic TM initiatives via an
asset-backed mode, coupled with trading of
externally sourced palm and other edible oils.
TM activities are supported by a well defined
risk management and forecasting system
while operational efficiency is achieved via
a robust shipping network of chartered sea
going vessels. This strategic TM effort is an
enabler in making FGV a world class leader in
the palm oil trade.
Going further into completing the supply
and value chain landscape, TML Cluster
activities are supported by both standard
and MTO activities with proven storage and
handling capabilities; providing impetus to
enhance the performance and improvement
of FGV’s core activities.
FGV has built the world’s largest and most
advanced bulking facilities for vegetable
oil terminal in Malaysia handling up to
40 percent of Malaysia’s total palm oil
exports. Storage capacity continues to
expand through a business model that
focuses on strategic partnership with port
operators, various palm oil players and
storage operators. This not only supports our
high volume CPO supply but also provides
sufficient storage requirements for other
edible oils to meet world demand.
TML Cluster operations emphasise on cost
containment, optimisation of resources and
increased revenue streams. Looking ahead,
TML Cluster is forging partnerships with
overseas integrated logistics providers in
key export markets. Furthermore, with the
recent establishment of FGV Trading Sdn
Bhd to focus on Trading and Tolling business,
we are on the fast track to becoming an
international palm oil trader.
KEY GROWTH TARGET:
TML Cluster strives to be a
Global Leader in trading, logistic
and storage by 2020
Felda Bulkers
Sdn Bhd
Transport &
Logistics
Felda Transport
Services Sdn Bhd
Felda Grains
Terminal Sdn Bhd
TML CLUSTER
Core Business
Storage
Marketing
&
Trading
FJB Group
FGV Trading
Sdn Bhd
Felda Marketing
Services Sdn Bhd
Langsat Bulkers
Sdn Bhd
PT. Patisindo
Sawit (Indonesia)
In expanding its business, the TML Cluster
will build its international capacity further by
partnering with overseas integrated logistics
providers. Adopting best practices in its
trading and marketing activities, TML Cluster
will create a fully functional asset-backed
business and will allow FGV to leverage
on its agri-business origination-upstream
capabilities and tap into new and sustainable
revenue streams.
TRADING, MARKETING AND LOGISTICS
MILESTONES
1956
1971
1978
The Land Development Ordinance
1956 came into force on 1 July and
FELDA was established with a starting
capital of RM10 million.
FELDA embarked on its first joint
venture with Perlis Plantation Berhad
(PPB) to establish Kilang Gula Felda
Perlis Sendirian Berhad (KGFP), a
sugar milling and refining facility.
Formation of Agricultural Services
Corporation (now Felda Agricultural
Services Sdn Bhd) to produce planting
stock for oil palm.
A total of
112,635 SETTLERS
were taken in between
1957 – 1990.
FELDA
PPB
1995
2004
FELDA HOLDINGS SDN BHD
FELDA commissioned the Sahabat
biomass power plant in Lahad Datu,
Sabah – the first Clean Development
Mechanism (CDM) project in the
world that runs entirely on empty
fruit bunches (EFB).
(now Felda Holdings Bhd or FHB)
was set up as
FELDA’s commercial arm.
ALL FELDA COMPANIES AND
CORPORATIONS BECAME SUBSIDIARIES
UNDER FHB.
2007
FELDA incorporated Felda
Global
Ventures Holdings Sdn Bhd
(FGV) to operate as a commercial
arm for FELDA’s overseas investments
in upstream and downstream palm
oil businesses as well as other agribusiness.
2011
2012
2013
MSM Malaysia Holdings Berhad,
a subsidiary of FGV, was listed on
the Main Market of Bursa Malaysia
Securities Bhd. The exercise raised
On 28 June, FGV was listed on Bursa
Malaysia. The initial public offering,
which was the world’s third largest in
2012, raised RM10.4 billion.
FGV Cambridge Nanosystems Limited
(FGV CNS) produces high grade
Carbon Nanotube and Graphene.
Ties were formed with Lipid Venture
Sdn Bhd to produce and market
tocotrienol (Vitamin E).
Both derived from
by-products of palm oil.
RM796 million
It was the first company within
the Felda Group to go public
in Malaysia.
1980
1985
1992
FELDA established an investment
co-operative (Koperasi Permodalan
Felda or KPF) to provide settlers and
FELDA employees opportunities to
invest in FELDA companies.
Felda Rubber Corporation Industries
(now Felda Rubber Industries Sdn
Bhd) was set up to operate rubber
processing factories and produce
latex concentrate and rubber.
COMMERCIAL
PLANTING
OPERATIONS
began under
FELDA PLANTATIONS SDN BHD.
2008
2009
FGV acquired FELDA’s investments
in North America including Twin
Rivers Technologies Holdings Inc.
(TRT Holdings).
NORTH AMERICA
TWIN RIVER TECHNOLOGIES
HOLDINGS INC
2010
FGV acquires
50%
equity interest
in FELDA IFFCO SDN BHD
(a joint venture with IFFCO Holdings Ltd)
and TRURICH RESOURCES SDN BHD
(a joint venture with Tabung Haji).
2014
FGV was the recipient of 2014 Frost &
Sullivan Malaysia Palm Oil Plantation
Company of the Year for the second
consecutive year.
The Felda Group became the world’s
first smallholder organisation to
attain the Roundtable on Sustainable
Palm Oil (RSPO) Certification.
RSPO
1st
IN THE WORLD
By leveraging on opportunities
with ingenuity and expanding
our presence and capabilities,
FGV continues to
advance across the global
agricultural value chain.