Kuala Lumpur Kepong Berhad

Kuala Lumpur Kepong Berhad (KLK) (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[3] in Malaysia (both 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.[5] KLK was ranked 1858th[6] 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.[7] The late Thong Yaw Hong, (former) secretary general of the Malaysian Treasury, sat on the board of KLK.[8] [9] Lee Oi Hian, the CEO of KLK, is or was chairman of the board of trustees of the Malaysian Palm Oil Council.[10]

Kuala Lumpur Kepong Berhad
TypePublicly traded company
MYX: 2445
ISINMYL2445OO004
IndustryPlantation (core business), manufacturing (resource-based), property, retailing
PredecessorThe Kuala Lumpur Rubber Company, Limited (KLR) (1906–1960)
Kuala Lumpur-Kepong Amalgamated Limited (KLKA) (1960–1973)[1]
Founded1906
HeadquartersWisma Taiko, No. 1, Jalan S.P. Seenivasagam, 30000 Ipoh, Perak, Malaysia
Key people
R. M. Alias, Chairman
Lee Oi Hian, CEO
Revenue MYR 7,490.6 million (2010)[2]
MYR 1,409.2 million(2010)[2]
MYR 1,012.3 million (2010)[2]
Total assetsMYR 5,440,741 million (2010)[3]
Number of employees
38,000[4]
Websitewww.klk.com.my

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 Limited (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.[11] 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.[3] It is among the few companies, that have been prosecuted for open burning so far.[12] As of September 2010, the geographical distribution of the group's plantations is as follows:

Region Area (ha.) Percentage Total
Peninsular Malaysia 69,261 28% 248,746 (100%)
Sabah, Malaysia 40,359 16%
Indonesia 139,126 56%

Oleochemicals[13]
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.

Country Company Business
Malaysia Palm-Oleo Sdn. Bhd. Fatty Acids & Glycerin
KSP Manufacturing Sdn. Bhd. Soap Noodles
Palmamide Sdn. Bhd. Ethylene Bis-Stearamide & Alkanolamides (Diethanolamides/Monoethanolamides)
KL-Kepong Oleomas Sdn. Bhd. Fatty Alcohols, Methyl Esters & Methyl Ester Sulfonate
Palm-Oleo (Klang) Sdn. Bhd. Fatty Acids, Glycerine, Soap Noodles & Fatty Esters
KLK Bioenergy Sdn. Bhd. Biodiesel
China Taiko Palm-Oleo (Zhangjiagang) Co., Ltd. Fatty Acids and Glycerine, soap noodles, & soap bars
Shanghai Jinshan Jingwei Chemical Co., Ltd. Amines, dimethylacetamide, esters, & surfactants
Germany KLK Emmerich GmbH Fatty acids, hydrogenated fatty acids & glycerine
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 & 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.[14] In early 2012, the Crabtree & Evelyn business was sold to Khuan Choo International Limited for US$155 million.[15]

References
  1. "Corporate History". Archived from the original on 12 March 2010. Retrieved 9 August 2011.
  2. "KUALA LUMPUR KEPONG BHD (KLK:Kuala Lumpur)". Archived from the original on 19 January 2013. Retrieved 9 August 2011.
  3. "KUALA LUMPUR KEPONG BHD ANNUAL REPORT 2010" (PDF). Archived from the original (PDF) on 10 August 2014. Retrieved 9 August 2011.
  4. "KUALA LUMPUR KEPONG BHD (KLK:Kuala Lumpur)". Archived from the original on 31 October 2010. Retrieved 9 August 2011.
  5. Kuala Lumpur Kepong Bloomberg
  6. Kuala Lumpur Kepong Forbes.com
  7. Malaysia 100 2014 Archived 10 March 2015 at the Wayback Machine brandirectory.com
  8. Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 82
  9. "Public bank co-chairman Thong dies | theSundaily". thesundaily.my. Retrieved 30 May 2016.
  10. Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 82/83
  11. "Sector Overview". Archived from the original on 22 July 2011. Retrieved 9 August 2011.
  12. Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 146
  13. KLK Oleo About Us
  14. "Welcome To Crabtree & Evelyn". Archived from the original on 21 April 2011. Retrieved 30 May 2016.
  15. http://www.theedgemalaysia.com/highlights/210755-klk-sells-crabtree-a-evelyn-for-us155m.html%5B%5D
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