Sime Darby Jomalina becomes its first Malaysian refinery supplyingsegregated certified sustainable palm products

Petaling Jaya, 14 November 2013 - Sime Darby Jomalina Sdn Bhd, is now the world’s largest producer of segregated certified sustainable palm oil (CSPO), with a production capacity of 330,000 MT per annum. The Malaysia-based refinery, owned by Sime Darby Plantation, has been certified as a fully segregated producer of CSPO by the Roundtable on Sustainable Palm Oil (RSPO). This certification of SD Jomalina, is a major step forward for Sime Darby Plantation in its quest to produce and supply only certified sustainable palm oil and palm products.

SD Jomalina’s customers will now have the assurance that all the refined palm oil and derivatives produced by this refinery will be sourced from traceable and certified sources as its entire supply chain has been independently audited and certified. The CSPO supplied to SD Jomalina is sourced mainly from Sime Darby Plantation’s RSPO certified estates.

“This is Sime Darby Plantation’s first facility in Malaysia, with a fully certified supply chain, which allows us to offer RSPO certified segregated refined palm products to the market. With this certification, customers can be confident that SD Jomalina will offer not only refined palm oil and palm products of the best quality but also that its entire production has been sustainably produced and sourced from fully traceable supply chains,” said Tan Sri Mohd Bakke Salleh, President and Group Chief Executive of Sime Darby Berhad. “I am very proud of this achievement. It is proof of our enduring commitment to sustainable agricultural standards,” Mohd Bakke added.

To obtain certification as a segregated facility, SD Jomalina ensures that all the CSPO it sources is separated from non-CSPO at every stage of its production, from the mills to the refinery, the entire manufacturing process and also its transportation to storage and bulking facilities. This process is supported by a supply chain management system in accordance with the RSPO’s Supply Chain Certification System and Standard and is independently verified and certified by an RSPO accredited certification body.

Although the RSPO offers other options for the production and procurement of CSPO and its derivatives, such as the mass balance and the book & claim systems, segregation offers a higher level of commitment and thus assurance for customers.

“This is a timely move by Sime Darby Plantation as the demand for segregated CSPO and its derivatives continues to grow as customers shift towards sustainable sourcing. We have strategically positioned and aligned our mills throughout our operations in Malaysia to facilitate the segregation module,” said Datuk Franki Anthony Dass, Managing Director of Sime Darby Plantations.

Currently, there are 21 mills in Sime Darby Plantation’s operations in Malaysia and Indonesia that are certified with RSPO segregated supply chain status. This number is expected to grow to 35 mills in 2014.

“With the current number of RSPO certified mills, Sime Darby Plantation has the capacity to produce up to 900,000 MT per year of segregated CSPO from its operations in Malaysia and Indonesia. We expect total segregated CSPO production to increase to 1.5 million MT per year, after the next annual surveillance audit by the RSPO’s certification bodies,” Franki Anthony said.