Kulim’s Subsidiary Signs Management Agreement to Operate Southern Catalyst’s Estate

June 16, 2022

PUTRAJAYA, 16 June 2022 – Kulim (Malaysia) Berhad (Kulim)’s subsidiary, Mahamurni Plantations Sdn Bhd (MPSB), signed a Management Agreement with Southern Catalyst Sdn Bhd (SCSB) to take over the operation of its Air Manis Estate in Sedenak, Johor.

MPSB will manage a total planted area of 818 hectares of Air Manis Estate, which is adjacent to Kulai–Sedenak federal road, about 12 km from Kulim’s Sedenak Palm Oil Mill. The agreement is for a period of one year and is renewable annually.

The activity to manage third party estates is in line with Kulim’s business strategy that creates synergies to gain benefits for both parties at a competitive rate. Kulim has management expertise to provide services in the plantation industry such as our own laboratory which was accredited by ISO and advisories visits.

The agreement was signed between Mohd Faris Adli Shukery, Managing Director of Kulim, representing MPSB, and Ir Mohd Nazree Abu Kassim, Chief Operating Officer of SCSB. Also present were Fairuz Ismail, Chief Operating Officer of Kulim, and Khairur Rijal Othman, Senior Manager of SCSB.

Kulim’s plantation operations in Malaysia cover a total area of 55,796 hectares. It has five palm oil mills, which process an average of 1.4 million MT of fresh fruit bunches annually. In 2021, the Group produced 295,747 MT of crude palm oil. All of Kulim’s 23 estates and five mills are RSPO-certified.

“Kulim welcomes the opportunity to manage Air Manis Estate, which will expand the Group's production base and enhance economies of scale due to its proximity to our palm oil mill. As a responsible agribusiness player, Kulim will apply its best agricultural practices for the optimal growth and sustainable production of oil palm in the estate,” said Mohd Faris.

Ir Mohd Nazree said SCSB looks forward to the exciting sustainable journey it is embarking on with Kulim.

“Southern Catalyst views this signing as not only a perfect fit for its upstream and downstream plantation activities but more importantly, the prospect of moving towards being the most efficient, socially responsible, and environmentally plantation activities in Kulai,” he said.

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