Kuala Lumpur Kepong Berhad (“KLK”), a company incorporated in Malaysia, is listed on the Main Market of Bursa Malaysia Securities Berhad with a market capitalisation of approximately RM23.5 billion at the end of September 2012.
Started as a plantation company more than 100 years ago, plantations (oil palm and rubber) still lead as KLK’s core business activity. Through various strategic acquisitions and sound management, the Group’s plantation land bank now stands at more than 250,000 hectares spread across Malaysia (Peninsular and Sabah) and Indonesia (Belitung Island, Sumatra, central and east Kalimantan). With replantings in Sabah and vast new plantings in Indonesia progressively brought into harvesting, the annual crop production is expected to increase rapidly in the years ahead. Processing of the crop is carried out in KLK’s own mills and refineries into crude palm oil, RBD palm olein and stearin, and palm kernel oil and cake.
The Group’s rubber plantations yield a steady annual production of premium SIR/SMR grades and latex concentrate, meeting with the MS ISO 9002 standards.
Since the 1990’s, the Group had diversified into resource-based manufacturing (predominantly oleochemicals) and vertically integrated both its upstream and downstream businesses. Its operations have expanded through joint-ventures and acquisitions in Malaysia, the People’s Republic of China and Europe, allowing the oleochemical division (i.e. KLK OLEO) to venture further downstream into products like methyl ester sulfonate, amines, biodiesel, fine chemicals and surfactants. Nevertheless, KLK OLEO’s primary focus remains the strengthening of its competitive advantage in basic oleochemicals such as fatty acids, glycerine, fatty alcohols and esthers. KLK OLEO’s global presence also facilitates world class standards in support and servicing of its clientele.
The 1990’s also saw the Group capitalising on the strategic location of its land bank in Peninsular Malaysia by branching into property development. Its latest project, the 1000 acres Bandar Seri Coalfields township is located in the vicinity of Sg. Buloh, Selangor and will be developed over the next 10 years. This is in addition to the nearby Desa Coalfields and Sierramas projects which have recently been completed.