Rubber note @Sime

RUBBER PLANTATION The shrinking of world’s rubber area, high increase in petroleum prices, expansion of the world’s automobile industry and growth in the medical field, gradually give rubber, which experienced its bleak era for the past 10 to 15 years, a new lease of life. While oil palm reigns as the main crop of Sime Darby Plantation, the company is reducing the Group’s dependence on a mono-crop business with the planting of rubber. To date Sime Darby Plantation owns 8,086 hectares of rubber plantation concentrated within the rubber cluster in Negeri Sembilan, Melaka and north Johor namely in: Bukit Pilah Estate (Negeri Sembilan) Pertang Estate (Negeri Sembilan) St Helier/Juasseh Estate (Negeri Sembilan) Bradwall Estate (Johor) Sungei Sabaling Estate (Negeri Sembilan) Sungei Bahru Estate-(Negeri Sembilan) Welch Estate (north Johor) Sungei Senarut Estate (north Johor) Apart from the estates, Sime Darby Plantation also owns a latex concentrate factory in Sungei Senarut Estate (SD Lates Batu Anam) and a SMR rubber factory in Tangkah. Sime Darby’s associate company Muang Mai Guthrie Public Company Limited, involves in the mid stream rubber processing, owns two factories in Phuket and Surat Province, Thailand, producing primarily latex concentrate, skim block rubber and epoxidised natural rubber (ENR). These various rubber products are sold to local rubber manufacturers as well as exported all over the world. Sime Darby’s rubber plantation has been certified Well-Managed Plantation by the Forest Stewardship Council since 2002. Prospects and Strategic Plan Sime Darby Plantation takes the development in rubber industry as a positive sign that the industry is stabilising itself. The company is leveraging its current strength and recognises rubber as one of the core businesses, capable of contributing significantly to the Group. Sime Darby Plantation owns the necessary expertise, resources and technology in production and processing of rubber as well as strong market access and reputation in respect to rubber business. The positive development in the rubber industry also gives Sime Darby Plantation the confidence to expand its plantation size. Sime Darby Plantation has identified some areas in Malaysia, South East Asia and Africa for expansion.