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欧博Allbet(www.allbet8.vip):FGV allocates over RM1bil capex for FY23

欧博Allbet(www.allbet8.vip):FGV allocates over RM1bil capex for FY23

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PASIR GUDANG: FGV Holdings Bhd is allocating over RM1 billion capital expenditure (capex) for the financial year ending Dec 31, 2023 (FY2023), its largest annual capex, group chief financial officer Datuk Mohd Hairul Abdul Hamid said.

He said around RM400 million of the RM1 billion would be utilised for replanting old oil palm trees, whereby a lot of machinery seedlings and other items are needed.

"The remaining capex for year 2023 will be used for mainly asset replacement and upgrading to improve operating efficiencies as well as to meet regulatory requirements,” he told reporters during a media visit to FGV’s subsidiary, Delima Oil Products Sdn Bhd, in Pasir Gudang, Johor Bahru.

He said as at the end of September 2022, FGV had spent nearly RM500 million on investments.

Previously, FGV spent RM468.3 million capex in 2020 and RM600.4 million capex in 2021.

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Meanwhile, on the US Customs and Border Protection (CBP) ban, group chief executive officer Datuk Nazrul Mansor said he hoped that the ban on the group’s palm oil products would be lifted by the end of 2023.

"We have set a target to submit the application by the first quarter of this year (by March 31, 2023). It will take some time for them (the US CBP) to consider the petition and we hope the petition will be lifted towards the end of this year, maybe earlier,” he said.

Since the US CBP announced the import ban on Sept 30, 2020, eight Malaysian companies consisting of manufacturers of rubber gloves and palm oil products were hit with the withhold release order by the US CBP regarding forced labour issues.

Six companies still on the list are FGV, Sime Darby Plantation Bhd, Smart Glove, Brightway Group, YTY Group as well as Maxter Glove Manufacturing Sdn Bhd, Maxwell Glove Manufacturing Bhd and Supermax Glove Manufacturing, which are collectively under Supermax Corp Bhd.

On the labour shortage, FGV’s divisional director for the plantation sector Mohd Sarian Md Sahid said the issue would be "completely” solved by the end of March with an additional 5,000 foreign workers from, among others, Indonesia and India coming in. - Bernama


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