Malaysia IJM unit to buy 95% of ZKP

06 April 2007 13:02  [Source: ICIS news]

MUMBAI (ICIS news)--Malaysia's IJM Plantations on Friday said its unit - Gunaria - has agreed to buy 95% of Indonesian plantation company, Zarhasih Kaltim Perkasa (ZKP), for rupiah ( Rp) 2.85 bn. ($313,232).

  

ZKP intends to cultivate oil palm on a plot of land measuring about 10,000 hectares, IJM said. The sites are located in Sangatta, Kutai Timur and East Kalimantan.  The land cost is anticipated about $347 (€258.6) per hectare.

 

IJM is among a number of companies in southeast Asia buying oil palm plantations as high oil prices drives demand for cheaper alternative, including biofuel. Oil palm can be used as a feedstock for biofuel.

 

($1=Rp9,095)

By: Isha Jha
+65 6780 4359

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