STPOM | Executive Director Keynote | Current Status

SUNGAI TERAH PALM OIL MILL SDN BHD AGROPALM - Associate Company

Having established itself as an agricultural consultancy firm, the next logical step was for the AGROPALM Group of companies to venture into owning plantations or oil mills. Finally, in October 21, 2003, Sungai Terah Palm Oil Mill Sdn. Bhd. [STPOM] was formed. STPOM is the latest ‘Fully Automated Continuous Sterilization [Latest; 3 rd Generation Mill] Palm Oil Mill' build by CBIP Berhad.

The idea for the mill was conceived initially for Madagascar , where the profile of the local population was mainly uneducated and undeveloped. The initial requirements were simple; ‘to build a palm oil mill that is simple to operate without the need for qualified engineers and safe'. The automation of the entire mill at a push of a button resolved the simplicity of operations required, whilst the continuous sterilization negated the use of a pressure vessel, thus negating the presence of a qualified engineer and making the mill very much safer. The result is STPOM.

The company is fully owned by the AGROPALM Group of Companies. STPOM obtained its license to operate from the Malaysian Palm Oil Board [MPOB] based on the strengths of STPOM having secured all the Fresh Fruit Bunch [FFB] crop from Syarikat Ladang Sungai Terah Sdn. Bhd. [SLST] for the next 60 + 30 years. The contract between STPOM and SLST is binding, hereditary and includes all other plantations held or managed by SLST, now and the future.

The mill is located within the main estate owned by SLST, on a parcel of land measuring 8.489 Hectares, which is owned by STPOM. The mill has an initial production capacity of 20-30 Metric Tons per hour, with the potential to at least double its capacity within the same allocated site. Plans are already on hand for the expansion of the mill in the year 2010. Currently, the crop projection for the next two years is between 120,000 to 150,000 Metric Tons per annum, with a projection breaching 300,000 Metric Tons per annum by 2010.

The breakdown of estates currently supplying FFB crop to the STPOM are as follows:
  • Syarikat Ladang Sungai Terah Sdn. Bhd. [SLST] 6064 Hectares
  • First Nationwide 2023 Hectares
  • Absolute Ascend 2023 Hectares
  • FELDA 1214 Hectares
  • RISDA 809 Hectares
  • LKPP 2428 Hectares
Total area currently supplying FFB to STPOM: 14,561 Hectares

The above excludes the available FFB from smallholders, which is expected to contribute an additional 10-15% more FFB.

The current situation at the palm oil mill is very promising as the crop flow is steady and the mill running up to expectations. STPOM is growing stronger by the day, and looks set for expansion to both increase its capacity and also to venture into other productions. [Detailed later in FUTURE PLANS]

PRINCIPAL ACTIVITIES - Sungai Terah Palm Oil Mill Sdn Bhd

By the nature of its name, the principal activities of STPOM will be centralized within its geographical vicinity. These activities will develop along the visions of the founder with the formation of the AGROPALM Group of Companies, with STPOM as the first asset based venture into the palm oil industry. The principal activities of STPOM are:
  • Production of Crude Palm Oil; Operating and Managing palm oil mills
  • Exploring the potential production of Palm Oil by products on site, i.e.:
    • POME Fertilizer; Oil Palm Biomass Residues as Fertilizer
    • Bio-diesel
    • Vitamins A & E
    • Additional uses of Oil Palm Fibers
  • Production of SMR Grade Rubber & Latex *
Note: * To commence at the end of 2006