Guthrie to open research center in RI

Guthrie to open research center in RI

NEW DELHI: Kumpulan Guthrie Bhd., a Malaysian plantation company, said it has spent 10 million ringgit (US$2.6 million) on its first palm fruit research center in Indonesia, as it seeks to expand its operations in the country.

Guthrie will conduct research in plant breeding, agronomy, fertilizer and crop protection practices, it said in an emailed statement on Monday.

Guthrie is increasing productivity of palm fruit as it seeks to lower costs and compete with rivals such as PT Astra Agro Lestari, Indonesia's largest publicly traded plantation company. Guthrie is producing as much as 16 tons of palm in a hectare of land compared with 10 tons a year earlier. Yield may increase to 24 tons by 2007, the statement said.

Guthrie owns 54 plantation estates in an area of 216,911 hectares in Indonesia and 17 mills, the statement said.

Malaysia and Indonesia produce 80 percent of the world's palm oil, which is processed into cooking oil and margarine and into chemicals used in soap.

Palm oil for delivery in March 2006 rose 1 ringgit to 1,406 ringgit ($372) a metric ton on the Malaysia Derivatives Exchange in Kuala Lumpur at 1 p.m. Mumbai time. -- Bloomberg