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Tapping from the vast experience of its partner companies in the
management of plantations and milling from the early years, SAB is able to
operate its own plantations and mill. The benefit gained from having
vertically integrated businesses involving plantation, milling and
downstream production is a natural hedging against the vagaries of the
different sectors of the palm oil industry.
Presently, SAB has plantations in Bukit Kemuning (Selangor) and Riau
Province ( Indonesia). SABs mill in Pekanbaru ( Riau Province, Indonesia)
was commissioned in June 2002. It has a yearly capacity of 240,000 MT
which is sufficient to process palms fresh fruit bunches sourced from
SABs own plantations and surrounding areas. The close proximity of the
companys own mill to oil palm plantations ensures that its extracted palm
oil is fresh and of the highest quality.
The favourable conditions for plantations in Indonesia make it a good
prospect for future expansion of SABs upstream activities in the palm oil
industry.
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