Sime Darby: Developing Sustainable Futures

Sime Darby Plantation is one of the world’s largest listed palm oil companies, producing about 2.4 million tonnes or 6% of the world’s crude palm oil (CPO) output annually.

As one of the founding members of the Roundtable on Sustainable Palm Oil (RSPO), Sime Darby is committed to having all its Strategic Operating Units (SOUs) certified by end 2011. To date, almost a third of its production, totaling more than 800,000MT, is Certified Sustainable Palm Oil (CSPO), making it the largest producer of sustainable edible oil in the world.

As of 11 April 2011, the Division has 25 SOUs certified by RSPO, cumulatively producing some 800,000MT of RSPO-certified palm oil annually.

Upstream - Sime Darby Plantation has a total planted area of more than 630,000 hectares in Malaysia and Indonesia, of which 531,000 hectares are planted with oil palms. It has a total of 202 estates and 63 oil mills in both countries.

Outside Asia, its upstream operations expanded to Liberia in January 2010. The first 10,000-hectare plot will be planted in April 2011. In total, the Division has a 220,000-hectare concession area in Liberia.

Sime Darby Plantation’s upstream operations include the development of oil palm plantations, cultivation of oil palm, management of estates, and milling of fresh fruit bunches (FFB) for CPO and crude palm kernel oil (CPKO). Being an efficient planter, the highest yielding estates produce 32.1MT of FFB per mature hectare.

As a responsible player, Sime Darby Plantation employs the best practices in the industry. Over and above our RSPO certification program, the Division has planted 260,000 rare and endangered trees in the last three years, as part of our commitment towards ensuring Mother Nature is cared for. These trees are planted in our estates, and some of them are done in collaboration with other corporations.

Downstream - Sime Darby Plantation’s downstream business is present in 15 countries, encompassing the manufacture and distribution of oils and fats products to biodiesels, oleochemicals, and nutraceuticals. It is divided into two segments - food based and non-food based - represented by eight refineries located in:

  • Malaysia (Sime Darby Jomalina Sdn Bhd, Sime Darby Kempas Sdn Bhd and Sime Darby Austral Sdn Bhd)
  • Singapore (Sime Darby Edible Products Limited)
  • Thailand (Morakot Industries Public Company Limited)
  • Vietnam (Golden Hope – Nha Be Edible Oils Co Ltd)
  • The Netherlands (Sime Darby Unimills B.V.)
  • South Africa (Sime Darby Hudson & Knight (Pty) Ltd)

Food & Beverages - Sime Darby Plantation also produces and markets a range of fast moving consumer goods (FMCG) products such as cooking oil, juices and cooking sauces to the Malaysian market.

Research & Development - Sime Darby Plantation is a leader in research & development (R&D), and is the first company in the world to fully sequence, assemble and annotate the oil palm genome. This breakthrough in unlocking the building blocks of the plant will enable Sime Darby Plantation scientists and R&D personnel to identify markers for valuable traits such as yield, disease resistance and drought tolerance, and use the markers to breed a new generation of oil palms.

The Division currently has in its employment over 200 scientists and researchers, carrying out various studies on yield efficiency, best practices, quality, agro best practices and also in food ingredients.

Sime Darby Plantation is a fully integrated player along the oil palm value chain - from the food farm to food on the table; the Division grows one of the cheapest forms of vegetable oil in its estates, processes this harvest in its own mills and then in its own refineries, and finally, Sime Darby Plantation also produces cooking oil for the domestic cooking oil market. Being a fully integrated player of the industry means it can control quality at every level by applying best practices across all the stages of the palm oil value chain. This process is done with the environment and quality in mind, ensuring that while it provides for the world’s needs, the earth itself is protected through its best practices.

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