Thursday, September 30, 2010

TDM secures Kalimantan site for plantation project


TDM Bhd has secured a 25,000-hectare site in Kalimantan for its oil palm plantation project, its chief executive officer Badrul Hisham Mahari said today.

The company currently has planted over 1,000 hectares with oil palm trees on the land, he said.

"We target to plant 3,000 hectares by end of the year and 5,000 hectares for every subsequent year," Badrul Hisham said.

"It takes eight to 10 years to finish the Kalimantan project but when fully completed, it will basically double the size of the company," he said at a press conference here.

The company is currently in negotiations to secure another 15,000 hectares of land to achieve its target to manage 40,000 hectares of oil palm estate in Kalimantan.

TDM is a key player in Malaysia's plantation sector, managing 12 oil palm estates with a total of about 35,000 hectares in Terengganu.

Badrul Hisham said the Kalimantan project will provide a much bigger impact to the company compared to its hospital development project in Indera Mahkota, Kuantan, which is expected to be completed in early 2013.

On the hospital project, he said the company was about to conclude the 150-room modern hospital tender process.

"We will try to expedite the development process so that we can complete the project within our targeted date," Badrul Hisham said, adding that the standard contract period for the project is two years.

TDM has obtained its shareholders' approval on the proposed allotment and issuance of a total of 1.82 million new TDM shares under its employees' shares option scheme (ESOS).

At its extraordinary general meeting (EGM) in Kuala Terengganu yesterday, the shareholders also agreed on the proposed allotment of issuance of a total 305,000 new TDM shares to the chief executive officer under the ESOS.

Two resolutions to issue ESOS to each of the independent directors, however, were withdrawn before polling because the company wanted to be responsive to the opinion of the minority shareholders. -- BERNAMA