Golden Agri zeroes in on expanding plantations by 35-45,000 ha
A 16,000-ha plantation is already under way.
According to OCBC, management remains relatively upbeat about its prospects, as it still sees robust demand growth for CPO as an edible oil from emerging and development countries; CPO prices are likely also supported by the limited supply growth of other vegetable oils.
For 2013, it plans to expand its plantations by 35-45k ha via organic growth and acquisition (already in talks to complete the purchase of 16k ha of mature plantation by 1H13).
"All in, it expects to spend US$550m in capex to both expand upstream and downstream operations," OCBC said.