FUTURE INVESTMENTS

Increase Production

By increasing the planted area and improving yield per unit area using modern planting materials, total production will increase. Presco plans to plant and replant a total of 2,000 hectares between 2011 and 2013 at Obaretin and Cowan Estates. Presco is continuously working to acquire and increase its land bank and is on verge of a major acquisition.

 

Increase Processing Capacity

In order to be able to efficiently process the increased production Presco started a programme to increase the processing capacity of the palm oil mill from 24 to 40 tonnes per hour in 2009. This was completed in November 2010. This investment included a second weighbridge, a third steriliser and more fruit cages, two further presses and associated equipment, a new clarification station, a new boiler and a 1.2 MW steam turbine. Presco has further initiated measures to add a 2.5 MW Steam turbine which it expects to commission by early 2012.                       

Increase Refining / Fractionation Capacity

In 2003 Presco increased its refinery/fractionation capacity to 60 tonnes per day. This was needed to cope with increased production from the plantation, and increasing demand from customers. A further increase to 100 tonnes per day has been done in 2010.

Improvement of Storage and Loading

Presco has recently modernised the existing tank farm and loading area to cope with increased production and sales. 1 x 2000 MT and 2 X 350 MT tanks have been installed in 2010. With another 4 x 200 MT being added in 2011.

Fractionation of PKO

In line with Presco's goals, we intend to commence the fractionation of palm kernel oil, a speciality product used in the food industry for the production of waffle cream.

Bio Methane Project

Presco intends to harness the methane gas produced by decomposition of its sludge to use the gas for its boilers. It has initiated steps towards this projects and intends to complete the same by early 2012. Presco believes it can successfully source its entire energy requirement from waste conversion thereby reducing its dependence on fossil fuels.

Improvement of Agricultural Equipment

In the plantation Presco uses a novel system of fruit collection that greatly reduces collection costs. The system consists of a tipping truck mechanism that reduces the fruit collection turnaround time. Presco will continue to equip itself with a similar truck-container system for use on its estates.

The company has over 400 km of plantation roads that require regular maintenance to ensure that the crop can be efficiently brought to the mill. To do this Presco operates its own fleet of heavy equipment (loaders, graders, bulldozers), which is routinely upgraded. The same equipment is used for land preparation and building works.

Cowan Jetty

Presco is rehabilitating its Jetty at Cowan estate to make it fully functional to receive large cargoes of CPO from West Africa.

Transport and Workshops

Transport and workshop operations are critical to a company that is moving 90,000 tonnes of fruit, shipping 30,000 tonnes of products and moving thousands of tonnes of materials (fertiliser, cement, sand, fuel, etc). Presco, therefore, continues to invest in its fleet and workshops.

 

Buildings, Furniture, Fittings and Others

Suitable accommodation and social facilities (clinics, and primary school  as well as a clubhouse and swimming pool) for staff are part of Presco's investment programme. To improve administration efficiency, Presco will continue to invest in modern office equipment and training of employees.

Management Tools

Presco renewed its standalone softwares with an enterprise resource planning (ERP) software system, named ABS. The ERP (ABS) system had increased the accuracy and timeliness of internal and external reporting, which in turn had improved decision making. The system had decreased overhead costs and increased productivity.