KUALA LUMPUR: FGV Holdings Bhd has not received any report of its subsidiaries’ involvement in open burning in Indonesia that caused air pollution, said group chief executive officer Datuk Haris Fadzilah Hassan.
“Until we have the data then we’re not able to say if this is happening or not,” Haris told reporters at a partnership deal signing ceremony between Delima Oil Products Sdn Bhd and DKSH Holdings (Malaysia) Bhd today.
“So far, we have not had any report about that. But, of course, being in Indonesia, it is a bit tricky because we have the Perkebunan Inti Rakyat and Plasma (Transmigration Programme) and there are also some smallholders around the perimeter of the big plantations,” he explained.
Also present at the signing ceremony were DKSH vice president of FMCG for Southeast Asia Patrick Stillhart, DKSH head of country management and vice-president of finance Nicholas McLaren, DKSH vice president of food services and brand development for Asia Pacific Michael Chew, FGV chief operating officer of plantation sector and head of palm upstream cluster Syed Mahdhar Syed Hussain and Delima Oil chief executive officer Shammim Azad Kamruzaman.
In Indonesia, FGV has 42,000ha of oil palm landbank on a joint venture with Lembaga Tabung Haji.
The oil palm estates are located across Kalimantan Tengah, Kalimantan Utara, Kalimantan Barat, and Pontianak.
Perkebunan Inti Rakyat is a joint-venture scheme between companies and smallholders, while the Plasma Transmigration Programme refers to farmers who are taking part in the programme set up by the Indonesian government.
Shammim said today's sealing of partnership with DKSH is set to expand FGV's distribution of its “Saji”, “Seri Pelangi” and “Adela” cooking oil and bakery fats into the hotels/restaurants/catering sector.
Shammim said in 12 months, Delima expects the partnership with DKSH to double its product sales in food services sector from RM3 million to RM6 million per month.
In March this year, DKSH completed its purchase of Auric Pacific (M) Sdn Bhd from its Singapore shareholder Auric Pacific Group Ltd for RM480.91 million.
Auric Pacific is known for its SCS butter/cheese, Buttercup luxury spread and Twin Cows blended spread.
It also distributes sauces and breakfast cereals such as Lee Kum Kee, Heinz, Kraft, McCain, Sara Lee and Berri.
To a question if DKSH still has an appetite to acquire, McLaren said if there are synergistic opportunities to add value to the company's business, DKSH is open to mergers and acquisitions.
When specifically asked if DKSH had considered acquiring Delima, McLaren said” "No, we don't have any plans to buy over Delima. Today's partnership signing is that of a distribution agreement."
To another question if Delima is open to possible mergers and acquisitions with competitors, Syed Mahdhar said: "Delima is not for sale."