Kuala Lumpur Kepong Berhad

Kuala Lumpur Kepong (KLK) Berhad

Industry	Plantation (core business), manufacturing (resource-based), property, retailing
Predecessor	The Kuala Lumpur Rubber Company, Limited (KLR)(1906–1960) Kuala Lumpur-Kepong Amalgamated Limited (KLKA) (1960–1973)[1]
Founded	1906
Headquarters	Ipoh, Perak, Malaysia
Key people	R. M. Alias – Chairman Tan Seri Dato' Lee Oi Hian – CEO Dato' Lee Hau Hian Thong Yaw Hong Abdul Rahman bin Mohd. Ramli Yeoh Eng Khoon Roy Lim Kiam Chye Kwok Kian Hai[2] Olivier Meurzec Lim Hong Joon A. K. Yeow [3]
Revenue	MYR 7,490.6 million (2010)[4]
Operating income	MYR 1,409.2 million(2010)[4]
Net income	MYR 1,012.3 million (2010)[4]
Total assets	MYR 5,440,741 million (2010)[5]
Number of employees	38,000[6]
Website	www.klk.com.my

Kuala Lumpur Kepong Bhd. (MYX: 2445) is a Malaysian multi-national company. The core business of the group is plantation (oil palm and rubber). The company has plantations that cover more than 250,000 hectares^[5] in Malaysia (Peninsular and Sabah) and Indonesia (Belitung, Sumatra and Kalimantan). Since the 1990s, the company has diversified its business activities such as resource-based manufacturing (oleochemicals, derivatives and speciality chemicals), property development and retailing (personal care products, toiletries and fine foods) with worldwide presence. The company is listed on the Bursa Malaysia and is Malaysia's third-largest palm oil producer.^[7] KLK was ranked 1858th^[8] in the 2013 Forbes Global 2000 Leading Companies, with market cap of USD 6.91 billion. In 2014, KLK was ranked 23rd most valuable Malaysia brand on the Malaysia 100 2014 with a brand value of USD 364 million.^[9] The late Tan Sri Dato' Thong Yaw Hong, (former) secretary general of the Malaysian Treasury, sat on the board of KLK.^{[10] [11]} Dato ' Lee Oi Hian, the CEO of KLK, is or was chairman of the board of trustees of the Malaysian Palm Oil Council.^[12]

History

The Kuala Lumpur Rubber Company, Limited ("KLR")(1906–1960)

KLR was founded in London, in 1906 to oversee some 600 ha. plantations (rubber and coffee) in Malaya (now Malaysia). In 1907, the shares of KLR were listed on the London Stock Exchange.

Kuala Lumpur-Kepong Amalgamated Ltd ("KLKA")(1960–1973)

In 1960, KLR changed its name to KLKA. The group started to plant oil palm in Fraser Estate. The group's first mill, the Fraser Mill was opened in 1967. In 1971, KLKA opened its Head Office in Kuala Lumpur. The next year, KLKA's tax residence was transferred from the United Kingdom to Malaysia.

Kuala Lumpur Kepong Berhad ("KLK")(1973–present)

In 1973, Kuala Lumpur Kepong Berhad ("KLK") was incorporated in Malaysia and under a Scheme of Reconstruction, KLKA went into voluntary liquidation with KLK taking over the assets and liabilities of KLKA. The company's shares is listed on the stock exchanges of Kuala Lumpur, Singapore and London. In 1979, the Head Office was moved from Kuala Lumpur to Ladang Pinji, Perak.

Business activities

Plantation

Plantation is the core business of KLK. Currently, KLK has more than 250,000 ha. of plantations areas in Malaysia and Indonesia. The annual production for fresh fruit bunches (FFB) is 3.1 million tonnes.^[13] KLK's own mills and refineries will then process the crop into crude palm oil, RBD palm olein and stearin, and kernel oil and cake. Meanwhile, in 2010, the production of rubber was approximately 23 million kg.^[5] It is among the few companies, that have been prosecuted for open burning so far.^[14] As of September 2010, the geographical distribution of the group's plantations is as follows:

Resource-based manufacturing

Oleochemicals^[15]

The logo of "KLK Oleo", the oleochemicals branch of KLK Berhad.

The core division of the sector is KLK Oleo, one of the largest palm oil based oleochemicals producer in the world. KLK marked it entrance into oleochemicals back in 1991, with the opening of Palm-Oleo Sdn. Bhd. Currently, KLK Oleo consists of nine companies, six in Malaysia, two in China and one in Europe (situated in Emmerich am Rhein, Germany). The full list of the companies is shown below.

KLK Emmerich GmbH.

Others

KLK also owns Dr. W. Kolb Holding AG, a producer of nonionic surfactant in Switzerland and Stolthaven (Westport) Sdn. Bhd., a common user liquid storage terminal at Westport, Port Klang.

Property

KLK owns KL-Kepong Country Homes Sdn. Bhd. Notable residential areas developed by KLK are Desa Coalfields & Bandar Seri Coalfields, both in Sungai Buloh, Selangor.

Retailing

Crabtree & Evelyn in Guildford High Street

Crabtree & Evelyn is a retailer of personal care products, toiletries, home fragrance products and fine foods with the headquarters in Woodstock, Connecticut, USA. The brand is sold in 40 countries.^[16] In early 2012, the Crabtree & Evelyn business was sold to Khuan Choo International Limited for US$155 million.^[17]

References

FBMKLCI companies of Malaysia
As of 20 December 2013
AMMB Holdings Astro Malaysia Holdings Axiata Group British American Tobacco (Malaysia) CIMB Group Holdings Digi.com Felda Global Ventures Holdings Genting Genting Malaysia Hong Leong Bank Hong Leong Financial IHH Healthcare IOI IOI Properties Group Kuala Lumpur Kepong Malayan Banking Maxis MISC PETRONAS Chemicals Group Petronas Dagangan Petronas Gas PPB Group Public Bank RHB Capital SapuraKencana Petroleum Sime Darby Telekom Malaysia Tenaga Nasional UMW Holdings YTL Corp

Palm oil
Oil palms	Attalea A. maripa Elaeis E. guineesis E. oleifera
Diseases and pests	Bagworm moth Basal stem rot (Ganoderma orbiforme) Cadang-cadang disease Little leaf syndrome Oryctes rhinoceros Rhynchophorus palmarum Oil palm bunch moth Tirathaba mundella Tirathaba rufivena Red ring disease (Bursaphelenchus cocophilus)
Components	Mesocarp Palm kernel oil lauric acid Palm oil stearin stearic acid linoleic acid myristic acid oleic acid palmitic acid
Processes	Fractionation Hydrolysis Milling Refining Saponification Transesterification
Products	Biodiesel by region NExBTL Bioplastics Cellulosic ethanol Girl Scout Cookies Oleochemicals Vegetable oil cooking fuel
Organisations	Producers Bumitama Agri Cargill Equatorial Palm Oil Federal Global Ventures (FGV) Feronia Inc. IOI Group Kuala Lumpur Kepong Berhad Sime Darby Wilmar International Buyers/ processors AAK GreenPalm Neste Unilever Governmental/ non-governmental FELDA The Forest Trust Indonesia Commodity and Derivatives Exchange Malaysia Derivatives Exchange Malaysian Palm Oil Board Roundtable on Sustainable Palm Oil
Policies, impacts and debates	Biodiesel impacts Biofuel policy (Malaysia) Biofuels issues Certified sustainable palm oil Deforestation haze Food vs. fuel Social and environmental impacts Vegetable oils as alternative energy
By country	Colombia Indonesia Malaysia
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