principal activity

PLANTATION

Currently this is the core activity of the Group. The main plantation company of MKIC is Syarikat Perlating Jerneh Plantation Sdn Bhd (“SPJP”) which is a 100% owned subsidiary. Under SPJP the subsidiary companies are as follows:-

Syarikat Perlating Jerneh Plantation Sdn Bhd

Syarikat Perlating Jerneh Plantation Sdn Bhd

MKIC Enterprises Sdn Bhd

This company owns 2,038 hectares (5,000 acres) of oil palm plantation located in Bahau, Negeri Sembilan. It was acquired in August 1992.

Syarikat P.J. Nagus Sdn Bhd (“PJN”)

PJN owns 1,695 hectares (4,187 acres) of matured oil palm plantation in Tawau, which was developed in stages with 850 hectares planted in 1994, 806 hectares planted in 1995 and 39 hectares planted in 2002.

Syarikat P.J. Indera Sdn Bhd (“PJI”)

This is a joint venture company between SPJP and Cooperative Society in Tawau, Koperasi Inderasabah Berhad (KIS). SPJP holds 51% equity while KIS holds 49% equity in PJI.

PJI owns 768 hectares (1,897 acres) of oil palm plantation which was developed and fully planted in September 1995.

Ulu Behrang Estate Sdn Bhd

This estate was acquired in February 1997. This 1,545 hectares (3,816 acres) of fully matured oil palm plantation is located in Merutai, Tawau, Sabah.

120 hectares was replanted in 2007 while another 140 hectares was replanted in 2008.

Greener Green Sdn Bhd

This estate was acquired in October 2003. This 487.41 hectares (1,204 acres) of fully matured oil palm plantation is located in Lahad Datu, Sabah.

MILLING

Balung Palm Oil Mill Sdn Bhd

Balung Palm Oil Mill Sdn Bhd

This 40 ton/hour palm oil mill in Tawau, Sabah was constructed in 1999 and commissioned in June 2001. The annual operating capacity of the mill is 180,000 metric tons of FFB. Currently it processes all the crops from our estates in Sabah as well as third party crops which comprise of 40% of its annual throughput.

The Group’s oil palm estates as well as its mill were one of the pioneers to be awarded the Malaysian Palm Oil Board (MPOB)’s Code of Good Practices (COP) in 2010 and 2011 respectively. With the COP certification, the Group’s estates and mill had adhered to highest standards of agronomic and milling practices resulting in efficient operations, higher productivity and compliance with food safety and sustainable requirements.