KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV), the world’s largest crude palm oil producer, will be closing down four palm oil mills, two rubber processing plants and a palm oil refinery, as it embarks on a group-wide consolidation exercise to rationalise non-economical assets and achieve efficiencies of 80%. “FGV has made a provision of RM49.2 million in 2016 for this exercise. “It will involve around 600 staff via a mutual separation scheme (MSS),” said Zakaria, as FGV streamlines its operations into three main divisions — plantation, sugar and logistics. On crude palm oil (CPO) outlook, Zakaria expects it to range between RM2,600 and RM3,000 per tonne in the first half of 2017. “We saw a lot of improvements at the pre-tax level, driven by strong recovery of the crude palm oil.

Source: The Edge Markets March 01, 2017 01:13 UTC