FGV Annual Report 2014

MSM PRAI BERHAD MSM Prai Berhad (MSM Prai), a joint venture between Kuok Brothers Sdn Bhd, Mitsui & Co and Nissin Sugar Manufacturing Company, was established to reduce Malaysia’s dependence on imported refined sugar. MSM Prai operates the Prai sugar refinery in Penang, located on the north-west coast of Peninsular Malaysia. The facility is the country’s largest sugar refinery with an annual production capacity of 960,000 tonnes of refined sugar, accounting for close to 86 percent of MSM Group’s total output capacity. The refinery is strategically located near Penang Port and has a dedicated jetty on site that enables barges to easily and cost-effectively off-load raw sugar taken from sea vessels directly into storage for refining. MSM PERLIS SDN BHD MSM Perlis operates a sugar refinery located in Chuping, Perlis. It has an annual production capacity of 150,000 tonnes representing approximately 14 percent of MSM Group’s total capacity. Currently, all of MSM Perlis’ refined sugar products are sold in the domestic market. With the installation of additional equipment such as centrifugal machines and increased automation of production processes, the refining capacity is expected to increase to 200,000 tonnes annually. MSM Perlis has warehouse facilities on site, as well as a bulk cargo terminal in Prai, Penang, from which its products are transported throughout Malaysia via road and sea. A number of customers also gets the refined products directly from the warehouse and from the bulk cargo terminal. Looking forward Looking ahead, global sugar production strives to match consumption. With the incorporation of our international trading centre in Dubai in 2015, we believe that our export sales will experience a growth trajectory moving forward. Our new refinery in Johor will begin operations in 2017. Refined sugar production is targeted to increase to 4 million tonnes a year by 2020 from the current 1.1 million tonnes a year. With our strategic growth plans in place, we are committed to enhance and deliver on shareholder value in the next five years. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 83