Malaysia is the second largest producer and exporter of palm oil and palm oil-based products with the palm oil industry already an important pillar of the country’s economy, contributing RM44.8 billion or 3.8% of the country’s GDP in 2017. Malaysia also contributes 29% of the world’s palm oil production and 33% of world’s palm oil exports.
Thus, Malaysia has an important role to play in fulfilling the growing global demand for sustainably produced oils and fats.
Against this backdrop, Sime Darby Plantation Berhad (SDP), the world’s largest producer of certified sustainable palm oil (CSPO), recently launched a new entity, Sime Darby Oils (SDO), which is poised to leverage on the huge potential of growth in the downstream sector of the Malaysian palm oil
In the first ever rebranding of the company’s entire downstream division, SDP recently held an event that marked a significant milestone in SDP’s history. It also unveiled SDO’s new corporate logo and corporate identity, its new domain name (www.simedarbyoils.com) along with its signature tagline ‘Realising Possibilities, Together’.
SDO aims to establish itself as a sustainable oils and fats multinational company that is involved in the trading, manufacturing as well as sales and marketing of oils and fats products, palm oil-based biodiesel, nutraceuticals and other derivatives. The company has an extensive global network in eight countries – Malaysia, China, Netherlands, UK, South Africa, Thailand, Indonesia and Papua New Guinea.
Almost 80% of the group’s output is contributed by its upstream business, and the remaining 20% from its downstream business, with the company keeping in view a long term goal to have equal participation from both sectors.
“This is an exciting time for us as it marks a strategic milestone in the future direction of our company. Our focus towards offering sustainably produced differentiated products and derivatives is now represented by a new single entity that encompasses our entire downstream business. Sime Darby Oils will allow us to continue meeting the evolving global demands and extend our reach to serve new customers,” said Tan Sri Dato’ Seri Mohd Bakke Salleh, SDP’s Executive Deputy Chairman and Managing Director.
Officiating at the launch of SDO, the country’s Primary Industries Minister Teresa Kok said the group has achieved a 100% Malaysian Sustainable Palm Oil (MSPO) across its 124 estates and 33 mills nationwide.
“With such a strong commitment from major plantations companies such as SDP, we are confident that Malaysia will be able to move towards a mandatory MSPO certification for our entire palm oil supply by the end of 2019, thus raising the national palm oil industry’s standard,” said the Minister.