Our Company was incorporated in Singapore on 26 September 2007 as a private company with limited liability and was converted to a public limited company on 20 June 2008. Our Company became the holding company of our Group pursuant to the Restructuring Exercise.
The history of our Group can be traced back to 1995 when our Chairman and CEO, Mr. Henry Maknawi acquired a land bank of 9,000 hectares on Bangka Island in Sumatera for the cultivation of oil palm plantations. We began our operations in the first quarter of 1995 and commenced planting in early 1996. In September 1997, our Group further acquired a land bank of approximately 15,000 hectares in South Kalimantan and began planting in 1998. The following sets out certain milestones achieved as part of our expansion strategy:
- In March 2001, our Group began commercial production of CPO with a capacity of 30 MT/hour at our first palm oil mill located on Bangka Island. We also acquired an additional land bank of 650 hectares on Bangka Island in December 2001. We upgraded our oil mill operations in 2004 by increasing our production capacity to 60 MT/hour.
- In August 2002, our Group began commercial production of CPKO at our first kernel crushing plant on Bangka Island with a capacity of 100 MT/day, which we increased to 135 MT/day in 2005. To support our business operations, our Group then began operating a bulking terminal in Belinyu, Bangka Island in September 2002 for storage of our CPO and CPKO.
- In August 2003, our Group began commercial production of CPO at our second palm oil mill in South Kalimantan with a capacity of 45 MT/hour. Our second kernel crushing plant, situated in the same vicinity as our second palm oil mill, commenced operations in June 2004 and had a CPKO production capacity of 300 MT/day. To cater for the expansion in business activities, our Group built and operated our first oil barge in March 2004 and later acquired a self-propelled oil barge in July 2006.
- In February 2004, as part of our Group's strategy to build up our land bank, we acquired approximately another 12,000 hectares in East Kalimantan and acquired an additional 2,000 hectares in April 2005, at which we began planting in 2005.
- In October 2005, our Group continued to build up our land bank by acquiring an additional 44,000 hectares in a separate area in East Kalimantan.We began planting in this area in 2006.
- In line with our "zero-waste management" policy to provide "green" renewable electricity, we began construction of our first biomass power plant on Bangka Island at the start of 2005 to supplement the electricity needs of the Bangka Island's local community as well as our energy requirements. In May 2007, we first entered into a one-year renewable power purchase agreement with PLN to supply PLN with electricity. We have since renewed this contract for another year up to 31 May 2009. With the success of this pilot project, we were invited by the local government in Belitung Island and PLN in 2007 to build a second renewable biomass power plant on Belitung Island in Sumatera.
- For 2006, SWK scored the highest among 18 private plantation companies in the province of Bangka Island Belitung in an assessment of large scale private plantations by the provincial government of Bangka Island Belitung classifying SWK under a plantation class of "good". AKM was awarded a certificate giving AKM a plantation class of "very good" by the Governor of the Province of South Kalimantan, based on a merit point system for the classification of plantation companies operating in the region.
- In August 2007, our Group applied for the allocation of the location permit of an area of 19,600 hectares in West Kalimantan which was granted in November 2007.
As at the Latest Practicable Date, our total land bank comprised approximately 95,410 hectares with a
total planted area of 24,349 hectares.