Tradewinds in major palm oil deal in RI

Tradewinds in major palm oil deal in RI

KUALA LUMPUR (AFP): Malaysian-based Tradewinds (M) Bhd. is
using a palm oil tie-up with Satia Dinamis Corporatama of Jakarta
to expand its business in Indonesia, company officials said
yesterday.

Tradewinds, listed on the Kuala Lumpur Stock Exchange under
the consumer products sector, is taking a 56 percent stake in the
joint-venture project to develop 15,000 hectares of oil palms on
Bangka Island, Indonesia.

The project, the development of which is estimated to cost 100
million ringgit (US$40 million), is expected to generate revenue
of 583 million ringgit ($233.2 million) over 25 years, company
officials said.

"This marks Tradewinds' entry into Indonesia, which is chosen
for the group's first venture in an oil palm plantation overseas
in view of the higher returns made possible by lower development
costs," said company secretary Rohaya Hashim.

Tradewinds, through its wholly-owned unit, Ladang Mawar Sdn.
Bhd., will take up the 56 percent stake for Rp 2.38 billion or
2.86 million ringgit cash in the joint venture firm Sadin
Tradewinds.

The balance will be held by Satia Dinamis Corporatama's
subsidiary PT Sadin Multiagro Sentosa.

Sadin Tradewinds will initially be capitalized at 5.1 million
ringgit and 20 million ringgit in eight years.

"Tradewinds is also actively exploring other areas in
Indonesia, particularly in Sumatra, for expansion of its oil palm
plantation as well as diversification into other sectors," Rohaya
said.