SD Guthrie, AME Elite to jointly develop green industrial park in Kulai

• SD Guthrie said the park will be developed on 641 acres of land in its estate in Kulai as a hub for high-value industries such as logistics, advanced manufacturing and clean technologies. It will feature a range of ready-built and built-to-suit factories.

KUALA LUMPUR (Nov 4): Plantation group SD Guthrie Bhd (KL:SDG) has teamed up with property developer AME Elite Consortium Bhd (KL:AME) to develop a green industrial park within the Johor-Singapore Special Economic Zone (JS-SEZ).

SD Guthrie said the park will be developed on 641 acres of land in its estate in Kulai as a hub for high-value industries such as logistics, advanced manufacturing and clean technologies. It will feature a range of ready-built and built-to-suit factories.

SD Guthrie signed a memorandum of understanding with AME Elite’s wholly-owned unit, AME Industrial Park Sdn Bhd, on Monday to formalise the collaboration, which includes stringent environmental standards and sustainable practices, while a joint venture agreement is expected within the next five months.

“The new industrial park, which will be located on part of our land in Kulai, represents a new step forward that will foster greater economic growth within the JS-SEZ,” SD Guthrie managing director Datuk Mohamad Helmy Othman Basha said in a statement.

“For decades, we have operated oil palm estates, mills and a refinery in the state of Johor, and we have always been committed to driving sustainable development that benefits the local community. This memorandum with AME Elite signals our intent to create more revenue streams from our strategically located land assets, and more value for our shareholders,” Mohamad Helmy added.

SD Guthrie, formerly known as Sime Darby Plantation Bhd, announced in May that it was expanding into green industrial parks and renewable energy to unlock the value of its vast landbank in Malaysia and create sustainable revenue streams. The group said it was in active discussions with several state agencies and potential business partners to develop selected land parcels strategically located throughout Malaysia.

In August, SD Guthrie announced a potential collaboration with TH Properties Sdn Bhd to develop Malaysia’s first HALMAS-certified managed industrial park.

Meanwhile, AME Elite has successfully completed four industrial development projects in Johor and is currently developing four others in Johor and Penang, spanning a total land area of 800 acres, with a combined estimated gross development value of RM6 billion. Last week, the company announced its partnership with another plantation company Kuala Lumpur Kepong Bhd (KL:KLK) to develop a new industrial park in Ijok, Selangor.

AME Elite executive director and group chief executive officer Dylan Tan Teck Eng said the collaboration with SD Guthrie presents a significant opportunity for the company to advance sustainable industrial development in Malaysia.

“By combining AME Elite’s expertise in creating award-winning industrial parks with SD Guthrie’s strategically-situated land, we will attract high-value industries and capitalise on the strong potential of the JS-SEZ. This project is certainly part of our strategy of leveling up our standards in industrial park development, not only adhering to high environmental standards, but also leading the way in sustainability,” he said.

Shares of SD Guthrie, which have risen over 13% year-to-date, closed unchanged at RM4.95 on Monday. This gives the group a market capitalisation of RM34.23 billion.

AME Elite gained two sen or 1.23% to RM1.65, valuing the company at RM1.04 billion.

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