Deal #307

Location #1

Spatial accuracy level
Administrative region
Location
Sabah, Malaysia

Target country
Malaysia

Land area

Size under contract (leased or purchased area, in ha)
[2011] 288623
Size in operation (production, in ha)
[2011] 46179
Comment on land area
40 % of the land is destined for conservation

Intention of investment

Intention of investment
Timber plantation (for wood and fibre), Industry
Comment on intention of investment
Trees for pulp and paper manufacturing facilities and biofuels to run the pulp mill, and an integrated timber complex consisting of a saw mill and a veneer and plywood factory.

Nature of the deal

Nature of the deal
Outright Purchase
Lease
Comment on nature of the deal
two parcels leased (276623 ha); two owned (12000 ha) SFI has two licences covering two distinct parcels of land - 1. Natural Forest Management License and 2. Industrial Tree Plantation License

Negotiation status

Negotiation status
Concluded (Contract signed)

Implementation status

Implementation status
In operation (production)

Purchase price

Comment on purchase price
The land/ lease contracts and the pulp and paper mill were acquired for 261 million USD in 2007. (http://farmlandgrab.org/post/view/8221)

Contract #1

Duration of the agreement (in years)
99

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
5000
Planned employees (total)
4000
Planned daily/seasonal workers (total)
1000
Comment on jobs created (total)
BILT and SFI was disassociated by the Forest Stewardship council due to its non-compliance to Labor agreements The factory is expected to employ a thousand workers and produce 1 million metric tpy of wood pulp, and will be funded by the Industrial and Commercial Bank of China Ltd, ExportImport Bank of China, and China Construction Bank Corp.

Operating company

Comment on investment chain
BILT under the Avantha Group has decided to sell the Sabah Forest Industries to a Malaysian Company, Pandawa Sakti; but the deal did not continue due to the buyer not meeting the set deadline. BILT was suppose to gain $50 million through this transaction. (06:07:2016)

 

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Data source #1

Data source type
Media report
File
Date
2009-01-01
Comment on data source
"Buying farm land and mines as local sectors languish" by Naresh Minocha

Data source #2

Data source type
Government sources
File
Date
2011-01-01

Data source #3

Data source type
Company sources
File
Date
2011-01-01

Data source #4

Data source type
Company sources
File
Comment on data source
company website

Data source #5

Data source type
Media report
File
Date
2016-07-06

Data source #6

Data source type
Research Paper / Policy Report
File
Date
2016-05-17

Data source #7

Data source type
Other (Please specify in comment field)
File
Date
2016-08-16
Comment on data source
Organization Report

Data source #8

Data source type
Media report
File
Publication title
Let proper experts run Sabah Forest Industries, says ex-banker
Date
2019-06-08

Data source #9

Data source type
Media report
File
Publication title
Pandawa Sakti Acquires Sabah Forest Industries (SFI) for $500 Million

Data source #10

Data source type
Media report
File
Publication title
Syed Mokthar firm allowed to proceed with suit over Sabah Forest Industries takeover
Date
2019-10-22

Data source #11

Data source type
Media report
File
Publication title
Court allows Sabah Forest Industries' bid for another judge to hear takeover suit
Date
2020-02-06

Promised benefits for local communities

Promised benefits for local communities
Education
Capacity Building
Financial Support
Comment on promised benefits for local communities
Activities include youth development programmes, micro-financing for women, school for differently abled children, community resource management programmes including tagal fish farming and wild game management, traditional craft workshops and marketing initiatives. (http://www.avanthagroup.com/downloads/Sabah-Forest-Industries-Sdn-Bhd.pdf)

Materialized benefits for local communities

Materialized benefits for local communities
Education
Capacity Building
Financial Support
Comment on materialized benefits for local communities
youth development programmes, micro-financing for women, school for differently abled children, community resource management programmes including tagal fish farming and wild game management, traditional craft workshops and marketing initiatives

Former land owner (not by constitution)

Former land owner
State
Comment on former land owner
at least part of the leased land is government owned

Former land cover

Former land cover
Forest land

Detailed crop, animal and mineral information

Crops area
Eucalyptus

Use of produce

Has export
Yes
Country 2
Syrian Arab Republic
Comment on use of produce
... South Africa, Jordan, Saudi Arabia,Indonesia,Thailand,Taiwan,China and Europe (see company website)

In country processing of produce

In country processing of produce
Yes

Overall comment

Overall comment
BILT and SFI was disassociated by the Forest Stewardship council due to its non-compliance to Labor agreements In 2020, The High Court allowed Sabah Forest Industries Sdn Bhd (SFI)'s bid to transfer the proceedings of tycoon Tan Sri Syed Mokhtar Albukhary-linked company Pelangi Prestasi Sdn Bhd's suit against two parties over its proposed takeover of SFI

July 28, 2020, 4:41 a.m.

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June 8, 2019, 8:48 p.m.

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Nov. 1, 2016, 4:36 a.m.

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May 22, 2015, 4:54 p.m.

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April 9, 2015, 5:40 p.m.

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March 13, 2014, 2:43 p.m.

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April 5, 2013, 5:03 p.m.

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April 5, 2013, 5:02 p.m.

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Feb. 15, 2013, 4:59 p.m.

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