Robert Kuok & Wilmar International - Creating Asia's Agribusiness Future - Today...

Wilmar International is the World's Largest Palm Oil Trader and is Asia's largest Agribusiness with a market capitalization of US$28 billion and revenues of US$24 billion.

On 13th August 2010, Wilmar International bought a 20% stake in Kencana Agri for S$80.36 million at 35 cents a share.

Wilmar supplies half of China's cooking oil and is China's Number One oilseeds crusher with a total of 15.6 million tons processed in 2009. Wilmar International is Asia's largest Agribusiness with a market cap of US$28 billion and revenues of US$24 billion. Robert Kuok's Kuok Group has a 32% stake in Wilmar and his share is worth US$5.6 billion. Wilmar is headed by Robert Kuok's nephew Kuok Khoon Hong who is chairman and chief executive. PPB Group Bhd of Malaysia is Wilmar's largest shareholder headed by Chairman Datuk Oh Siew Nam.

In July 2010, Wilmar bought Australia's biggest sugar company Sucrogen for A$1.75 billion. This acquisition is expected to generate US$200-US$400 million in profits.

Sucrogen is Australia's Largest raw sugar producer, accounts for 45% of Australia's raw sugar production and controls 70% of Australia and New Zealand's refining capacity of 1.4 million tonnes. Sucrogen is the Second Largest exporter of raw sugar Globally and a Leading exporter to the Asian region. It owns 7 mills in Queensland producing 2.1 million tons of raw sugar annually and is the Largest renewable Energy Generator using Cane Biogass with electricity cogen capacity of 171 MegaWatts.

According to the USDA, Australia produces 5 million tonnes of sugar and exports 3.7 million tonnes annually. Indonesia is a net sugar importer of 2.9 million tons (total consumption: 4.9 million tons).    

PT Wilmar Nabati Indonesia, a subsidiary of Wilmar International has agreed to build infrastructure in Merauke, in Indonesia's Papua province on 200K hectares of land. It plans to build a sugar refinery and sugar plantation with an investment of US$2 billion.  When ready, it will produce 16 million tonnes of sugar cane and 1.5 million tonnes of sugar per year. This is 32% of Indonesia's sugar demand - Indonesia now has a net deficit of 1.9 million tonnes of sugar and this shortfall is met with imports.

Also in July, Wilmar bought Kulim's oleochemical products manufacturing unit, NatOleo for M$450 million. NatOleo produces fatty acids, its fractions and glycerine.

In June 2010, Wilmar formed a JV with US-based Elevance Renewable Sciences Inc to develop a Bio-Refinery in Surabaya, Indonesia. The JV using Elevance's Proprietary Biorefinery Technology, will produce high value performance chemicals, advanced biofuels and oleochemicals. These products are used in Surfectants, Antimicrobials, Lubricants, renewable Biodiesel and Green Jet Fuels.

The refinery, located within Wilmar's new integrated manufacturing complex in Surabaya, will ultimately produce 360,000 tonnes of products.

Elevance Renewable Sciences Inc uses a Nobel Prize Winning Technology called Olefin Metathesis to create a wide range of specialty chemicals from natural oils like high performance waxes, functional oils, anti-microbials, lubricants, additives and other chemicals. Elevance was named one of Business Week's Top 10 Most Successful Startups of 2008.

Wilmar International is widening its presence in China by building a wheat processing facility in Henan Province. The project which  includes wheat processing plants as well as railway and warehouse construction for wheat products is in Zhengzhou, the capital of Henan province. This further enhances Wilmar's position in the grain industry.

In India, Wilmar International runs five crushing plants and owns half of Gujarat based Adani Wilmar Ltd which sells  cooking oil to 20 million households in India.

In May 2010, Wilmar International formed a JV with Three A Resources of Malaysia to jointly invest up to US$40 million in China. In November 2009, Wilmar acquired a 16.67% stake in Three A Resources for US$14 million. Wilmar also entered into a JV with Three A Resources to set up a factory in Shanhaiguan, China to manufacture and sell food and beverage ingredients with an investment of US$12 million.

Three A Resources' core business includes the production of caramel color, glucose syrup, highj maltose syrup, soya protein sauce, natural fermented vinegar, distilled vinegar, rice vinegar, caramel powder, hydrolyzed vegetable protein powder, soya sauce powder and maltodextrin. As of FY09, the company made a profit of M$18 million. According to Three A Resources, production of flavors and fragrances in China in 2000 had doubled from 145,000 to 300,000 tons.

Wilmar International is listed in Singapore. From 21st May to 6th August 2010, Wilmar International climbed 26%. It has embarked on a downward correction since then further triggered by a decline in 1Q profit by 15% for the first time in 4 years since 2006.