TDM Bhd, a unit of Terengganu state government, plans to spend RM120 million to build four palm oil mills in Kalimantan, Indonesia in the next eight to 10 years.
Its chairman, Roslan Awang, said in line with its expansion plan, the company would build its first mill in Kalimantan as its 8,000-hectare plantation would start to produce oil palm in 2013.
“The company has invested RM44 million in the plantation sector in Kalimantan,” he told a media briefing after the company’s annual general meeting today.
Roslan said TDM expected to increase its hectarage to 40,000 in the next eight years from the current 25,000ha.
“We expect to plant oil palm trees in about 20,000ha in the next three years,” he said.
He said the plantation segment contributed 91 per cent to the company’s profit last year while healthcare and food eight and one per cent respectively.
Roslan said the company’s outlook this year was good as crude palm oil prices were expected to stay above RM3,000 a tonne, backed by good exports of palm oil products.
On the healthcare sector, he said, TDM planned to acquire or build new hospitals.
“TDM started construction of the Kuantan medical centre last year. The RM120million hospital is expected to be completed by the first quarter of 2013,” he said.
Roslan said the company owned and managed the Kuala Terengganu specialist hospital, Kelana Jaya medical centre and has acquired the Taman Desa medical centre for RM16.5 million last year.
“We plan to build a new RM150-million, 150-room medical centre in Kuala Terengganu to replace the current one,” he said.