Plantation

Our Plantation Locations

Our Plantation Locations

TSH Resources has several plantations and mills across Sabah, East Malaysia as well as parts of Sumatera and Kalimantan, Indonesia.

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With its humble beginnings in Sabah, TSH has built up its plantation footprint and activity with aggressive expansion of its land bank in the region. Our plantations including associated companies are strategically located with approximately 50,000ha in planted areas across Sabah as well as parts of Kalimantan and Sumatra, Indonesia. Our unplanted land bank of about 65,000ha will keep us busy for many years to come and we are always on the lookout for more strategic acquisitions as part of our expansion plans. We are also confident that the young maturity profile of our palms in Indonesia is indicative of our positive growth prospects. TSH has also targeted new plantings of 4,000-5,000ha per year, allowing sustainable growth to the Group.

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Tissue culture technology has contributed significantly to the development and productivity of oil palm. In keeping with the industry and the advancements in technology today, TSH has invested considerably in our research and development efforts for many years. We have now commenced commercial production of our Wakuba ramets and have started to plant these on our plantations in Indonesia. This is an important milestone for TSH as we achieve better yields and returns from our plantations that will accelerate growth objectives.

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TSH was awarded a 100-year concession to carry out forest rehabilitation, environmental conservation and industrial tree planting on 123,000ha of forest land in Ulu Tungud, Sabah. We have also started to diversify and plant rubber as we believe that the addition of rubber is a good combination and spread of our plantation activities. TSH will continue to plant rubber by 1000-1500ha in the next few years, eventually building up to 10,000ha of planted rubber in order to capture the exciting potential of the rubber sector as well as increase our plantation footprint.

As we grow, so do our people. TSH is a firm believer that people are an important and integral component in sustaining our business in the long term. As a result, our Plantation Training Centre was established in 2005 in Central Kalimantan complete with facilities. The centre has successfully churned out a large number of students, all of whom have started out on their rewarding careers on our plantations. The pool of talents form a strong platform that enable TSH to implement its expansion plan.

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“TSH is also increasing its milling capacity in Indonesia to support its upstream activity. Moving down mid-stream, TSH has a 50-50 joint venture refinery with Wilmar International Ltd in Sabah with a capacity of up to 800,000mt per annum.”

Going forward, our plantations are expected to be the main driving force of TSH, forming almost the entire Group’s earnings in 2011. With over 70% in young and immature hectarage, we can expect a rich harvest in the next several years. This will also translate to more resilient earnings with steady Fresh Fruit Production (FFB) growth. Ultimately, TSH hopes to realize its objective of becoming a significant regional plantation player via its quest to expand its land banks and planted areas.

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