Cultivation of Oil Palm
- TH Group has progressed over the years from doing contracting work in land clearing and timber extraction in the early days to being a full fledge plantation company with a planted area of 11,469 hectares and a 90 metric tonne palm oil mill.
Our main plantations and the oil mill occupy one (1) continuous block in the Kinabatangan District about 120km from Sandakan and /or 70km from Lahad Datu.
There growth potential in the plantations is inherent in its age profile without additional investment on capital. Out of the total planted areas, old palms ( age 17 to 23 years old ) make up of seven percent (7%) , prime age palms ( 8-16 years of planting ) eighty-eight percent (88%) while young palms ( 2.5 to 16 years of planting) make up the rest.
The higher than average oil palm yield profile and the good infrastructure network in the plantations give the Group a competitive advantage while systematic control measures goes a long way to ensure cost and operation efficiency of the plantation.
Location of Plantation Operations
Operation of a crude palm oil mill
- Tung Hup Palm Oil Mill Sdn Bhd, a subsidiary of Tung Hup Enterprise Sdn Bhd, was incorporated in August 1992 and commenced operations in November 1996, with a capacity to process 45 tonnes of fresh fruit bunch (FFB) per hour. Subsequently, another processing line was added, thus doubling the total capacity to 90 tonnes of FFB per hour.
Our mill has consistently performed well in terms of processing volume and extraction rate. We have maintained an average oil extraction rate (OER) of 21.2 per cent since its inception, which is above the industry average of 20 per cent.
Currently, our mill is processing about 443,000 metric tones FFB a year of which 72% comes from our plantations.
- Tung Hup Palm Oil Mill Sdn Bhd won the 1997 Malaysian Palm Oil Industry Award from the Palm Oil Registration and Licensing Authority (PORLA) for the high extraction rate for CPO (about 20%) and Palm Kernel (nearly 5%).
In year 2000, Tung Hup Palm Oil Mill Sdn Bhd was awarded the Milling Certificate Competency by the Malaysian Palm Oil Board.