Competitive Strengths
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| The competitive advantages of KLR Group are as follows: |
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High FFB production |
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Majority of plantation area is in high yielding age. High FFB production generates strong cash flows and financial position. |
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Improving yield potential from plantation operations by using latest planting material and technology and increase productivity by mechanization. |
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Replanting is in progress to replace older palms to ensure continued growth in future FFB production. |
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| 2 |
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Strategic location of operations |
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a) Kota Tinggi Mill (100 MT FFB/hr) |
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Located near palm oil refineries and sources of FFB supply. |
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Good access road to the mill and located next to Kota Tinggi Highway. |
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b) Keningau Mill (90 MT FFB/hr) |
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Located within KLR's Keningau estates to enable more integrated operations and surrounded by other oil palm plantations. |
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Near to trunk roads for easy despatch of products to buyers as well as delivery of FFB by other suppliers to the mill. |
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c) Plantations |
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Located near major town and mills. |
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With good all-weather access roads to ease despatch of FFB in any weather. |
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| 3 |
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Palm Oil Milling |
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High OER and big milling capacity ensure our mills remain competitive. |
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Improved efficiency and additional income from wastes and by-products in Mill. |
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Continuous improvement of efficiency of milling operations through new innovation and technology, e.g. installation of solvent extraction plant to extract residual palm oil from pressed fibre to improve OER by approximately 0.5%. |
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Improving environmental friendliness and sustainable production |
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Adopting practices like zero-burning during replanting, development of logged-over secondary jungle, reduction of methane emission from effluent treatment, shutting down EFB incinerators, recycling and reuse of waste material for steam power generation will all contribute towards greater environmental friendliness of palm oil production and sustainability of the palm oil industry in the long run. |
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| 5 |
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Management capability |
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The Group's management has over 50 years’ experience in the oil palm industry. |
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Good long term relationships with suppliers and customers. |
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Capable managers and supporting staffs in all business entities. |
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