FGV's two refineries in Sabah not affected

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV)'s two palm oil refineries in Felda Sahabat and Lahad Datu are working well and not affected by the skirmishes in the area.

FGV president and group chief executive officer Datuk Sabri Ahmad said the company's two refineries are far from the conflict area, which is confined to around 2,000ha, or one per cent, of its oil palm plantations and land schemes.

"Our refineries are working well despite the security concerns," Sabri said when presenting his paper at the 24th annual Palm and Lauric Oils Conference, here, yesterday.

Sabri was commenting on the operation by Malaysian security forces to flush out Sulu terrorists around Kampung Tanduo.

In a research note to investors, CIMB also voiced its concern that FGV's operations, such as the transport of crude palm oil to refineries, could be disrupted if the conflict prolongs.

Sabri said all plantation operations are going on as usual except for that one single area.

"It is important that FGV continues with its operations because Felda Sahabat contributes 25 per cent to the group's total crude palm oil production of 3.3 million tonnes a year," he said at the sidelines of the conference.

On its expansion plans downstream, Sabri said due diligence works were being carried out, such as the opening of new oil palm estates in Indonesia.

In Myanmar, it may set up rubber processing plants in the next six months.