Sime Darby eyes Africa estates, Europe units

By Naveen Thukral

KUALA LUMPUR (Reuters) - Sime Darby (SIME.KL: Quote, Profile, Research, Stock Buzz), the world's largest listed palm-oil producer is looking to develop plantations in Africa and plans to build new palm-oil processing plants in eastern Europe to exploit booming edible oil demand.

Chief Executive Ahmad Zubir Murshid said on Monday the company had offers to develop 200,000 acres of rubber and palm plantation in Liberia, in the West Coast of Africa.

The price of palm oil, used as a cooking oil and in products ranging from cosmetics to cookies and biofuels, has almost doubled since beginning 2007 on surging demand from the food and fuel sectors.

Sime Darby, Malaysia's biggest listed firm, has short-listed three countries in eastern Europe to build downstream palm oil units which could include refineries and margarine plants.

The company will also increase production capacity of its subsidiary Unimills, a vegetable oil processing company in the Dutch port city of Rotterdam. It produces 450,000 tonnes of edible oil products annually, including biodiesel.

"We believe Europe has huge potential. We have identified at least three countries in eastern Europe," Ahmad Zubir told Reuters in an interview.

"It will be same size as Unimills or slightly bigger than Unimills," he said referring to plans for eastern Europe.

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