Sime Darby

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Sime Darby Berhad
Public company
Industry Conglomerate
Founded 2007
Headquarters Kuala Lumpur, Malaysia
Key people
 YB Tan Sri Dato’ Abdul Ghani Othman (Chairman)
Tan Sri Dato' Seri Mohd Bakke Saleh (President & Group CEO)
Tan Sri Dato' Seri Abdul Wahab Maskan (Group COO)
Products Plantation, motors, industrial, property, energy and utilities
Revenue IncreaseRM43.9 billion
(US$13.4 billion) (2013)[1]
IncreaseRM3.5 billion
(US$1.1 billion) (2013)
Number of employees
 Over 125,000
Slogan "Developing Sustainable Futures"
Website www.simedarby.com

Sime Darby Berhad (MYX: 4197) is a major Malaysia-based multinational conglomerate involved in 5 core sectors: plantations, property, industrial, motors and energy & utilities. Sime Darby is listed on the Main Board of Bursa Malaysia Securities Berhad.

Background

The modern Sime Darby Berhad corporation was created in 2007 through a merger of three companies.

Sime, Darby and Co. Limited

In October 1910, British businessmen William Sime and Henry Darby established Sime, Darby and Co., a fledgling player in the lucrative rubber industry. The company later diversified to cultivating palm oil and cocoa and met with enormous success. At the time of the company's founding, William Middleton Sime was a 37-year-old Scottish adventurer and fortune seeker. He had two failed ventures behind him – one in import-export business and the other in coffee plantations – when he left his job as a mercantile assistant in Singapore. Henry Darby was a wealthy 50-year-old English banker who owned property in Northern Malaya.

In the late 1970s just under half the equity in Sime Darby Holdings was acquired by Malaysian investors – mainly through Tradewinds (Malaysia) Sendirian Berhad. In December 1979 with the incorporation of two new Malaysian entities, Sime Darby Berhad (SDB) and Consolidated Plantations Berhad (CPB), Sime Darby moved its headquarters to Kuala Lumpur and became a Malaysian registered and managed concern. In 1981, the group became a wholly Malaysian-owned company after former Malaysian Prime Minister Mahathir Mohamad engineered a raid by Pemodalan Nasional Berhad to take over the group at the London Stock Exchange. By 1983, the Malaysian equity stood at over 54%.

Guthrie

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Main article: Guthrie (company)

The company was founded in Singapore in 1821 by Alexander Guthrie. It was the first British trading company in South East Asia. Guthrie introduced rubber and oil palm in Malaysia in 1896 and 1924 respectively. Guthrie Group was made a public company in 1987 and was subsequently listed on the Kuala Lumpur Stock Exchange (KLSE) in 1989 in what was then the largest public issue in Malaysia.

Golden Hope

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Main article: Golden Hope

In 1905 Harrisons and Crosfield, a British tea and coffee trading company, purchased several small estates in Malaysia for £50,000 and amalgamated them to form the Golden Hope Rubber Estate.[2] In 1982 Harrisons and Crosfield sold three large plantation groups – Golden Hope, Pataling, and London Asiatic[3] – to Malaysian concerns for £146 million.[2] The business was renamed Golden Hope Plantations Berhad in 1990 after Pemodalan Nasional Berhad took majority equity of the company. Its interests originally were in tropical agriculture but, while plantations have remained a core business interest, the company has diversified into other areas including glycerine manufacture, fruit juices and real estate. The group now has 83 subsidiaries based in seven countries. The main estate and plantations are Carey Island and Banting in Selangor.

Merger

In January 2007, the three Malaysian giants (Sime Darby, Guthrie and Golden Hope) merged into the vehicle entity named Synergy Drive and on 27 November 2007, Synergy Drive was renamed Sime Darby Berhad. The merged entity of three Malaysian corporations is a diversified Malaysian multinational with a workforce of 104,300 employees. Its core businesses are plantations, property, motor, heavy equipment and energy & utilities which are expected to benefit from continued population growth and economic development within the Asia Pacific region and the global economy. Sime Darby's non-core business units such as healthcare, insurance, and home products are grouped under its Allied Products and Services division (APS). Subsidiaries under APS include Sime Darby Medical Centre Subang Jaya (formerly known as Subang Jaya Medical Centre) (healthcare), Sime Alexander Forbes (insurance), and Dunlopillo Malaysia Sdn Bhd (home products). It also has a controlling share in the supermarket chain Tesco in Malaysia. Sime Darby is a multinational company, with more than 60 percent of the group's revenue coming from abroad.

As a result of the merger, the new Sime Darby became one of the world's leading listed oil palm plantation groups. Sime Darby Berhad also has a significant presence in downstream palm oil activities. The merger also made Sime Darby a leading developer of residential and commercial communities. Furthermore, it operates Caterpillar dealerships in 10 countries across the Asia-Pacific region, and distributorship and dealership of well known motor brands such as BMW. The current President and Group Chief Executive is Tan Sri Dato' Seri Mohd Bakke Saleh.

Businesses

Sime Darby is an international conglomerate involved in many types of businesses ranging from aerospace to tourism. Plantation sector remains the most important sector for the company.

Plantation

Sime Darby palm oil storage tanks in Kunak, Sabah.

Sime Darby operates palm oil and rubber plantations in Malaysia, Indonesia and Liberia. Plantations are Sime Darby's largest revenue generator, accounting for the majority of the group's profits in recent years.[4]

Sime Darby is one of the largest palm oil producers in the world, supplying about 2.47 million metric tonnes or 5% of world supply.[5] The company has a total planted area over 500,000 hectares and a land bank over 900,000 hectares. About two-thirds of the Sime Darby's palm oil production comes from Malaysia, and one-third from Indonesia. The company's recently developed estates in Liberia were not yet in production as of 2012.[6]

A related company in the Sime Darby group, Sime Darby Biodiesel Sdn Bhd, produces biodiesel from crude palm oil.[7]

Property

Sime Darby Property is involved in the property development business in eight countries, namely Malaysia, Singapore, Indonesia, Philippines, Vietnam, People's Republic of China, Australia and United Kingdom.

Industrial

The company is involved in the purchasing, leasing and selling of industrial equipment such as Caterpillar Inc., Iveco and Sitrak heavy duty trucks and tractors.

Motoring

The company has motor dealerships in eight countries. It owns Auto Bavaria in Malaysia, which sells BMWs and MINIs. With partnership with Ford, it sells Ford's cars and trucks together with the Land Rover brand. Besides that, it is the main dealership of Porsche and Alfa Romeo in Malaysia. It is also a major BMW dealer in Singapore, Australia, India and Thailand. In Southern China, the company sells BMW and Rolls-Royce.

In addition, Sime Darby co-owns Inokom Corp Bhd, a joint-venture with Hyundai Motor Company which assembles and sells Hyundai vehicles in Malaysia.

Energy and utilities

The company is an Oil and Gas services company which provides equipment for exploring oil and gas assets in the South East Asia region.

The company is also an independent power provider in Malaysia and Thailand. The company also provides engineering services in the system integration and sales sectors, security and oil & gas sectors.

Healthcare

The healthcare division has a hospital and college of its own. The Sime Darby Medical Centre, formerly known as Subang Jaya Medical Centre, and its college, formerly known as SJMC Academy of Nursing and Health Sciences, was established in 1995 and currently is known as Sime Darby Nursing and Health Sciences College.

Other businesses

The company has a port utility company named Weifang Sime Darby Port Co Ltd. Other businesses that the company is involved in include healthcare, aerospace (divested from Asian Composites Manufacturing (ACM) in 2009), bedding, consumer and industrial products, logistics and packing.

Tesco Stores (Malaysia) Sdn. Bhd. is a joint-venture between Sime Darby Berhad and Tesco plc. Its inception in 2001 saw Sime Darby hold a 30% stake in the joint-venture. Tesco currently operates 49 hypermarkets in Malaysia.

Controversies

Sime Darby has been accused of violating the land rights of local communities in Liberia, where they hold a concession for 220,000 hectares of farmland. Local environmental and human rights groups have called Sime Darby's contract with the Liberian government a "land grab," and say that the contract does not account for the ownership rights of the rural communities who live inside the concession area. In 2011, representatives of one community made a formal complaint to the Roundtable on Sustainable Palm Oil (RSPO), and in 2012 a group of communities signed onto a statement criticising the contract.[8][9] Sime Darby contends that its contract is legal and was completed with a democratically elected government, saying "there is no evidence whatsoever that it violates human rights."[10] For their part, civil society activists in Liberia state that the contract makes no protection for the land rights of rural communities and have called for renegotiation.[11]

In 2013, Sime Darby was accused of lighting some of the fires on Indonesian plantations that caused widespread pollution issues in Malaysia and Singapore. However, the company denied being responsible for the fires.[12]

See also

References

  1. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 Elementis
  3. ↑ London Asiatic
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ "Liberia: Sime Darby Agrees to Pay One Million,"
  9. ↑ "Resisting Sime Darby: Oil Palm Development Slammed at Gbarpolu Conference,"
  10. ↑ "Open Letter to Friends of the Earth," Sime Darby
  11. ↑ "Fact Sheet: Sime Darby and Land Grabs in Liberia," Friends of the Earth
  12. ↑ Sime Darby denies lighting fires

External links

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