SD Guthrie, Sime Darby Property to co-develop 2,000 acres on Carey Island into industrial, logistics hub

• The two parties said the agreement, following discussions that began in 2023, will be formalised through the establishment of a special purpose vehicle (SPV), which aims to support the Selangor state government’s aspiration to transform Carey Island into an industrial and logistics hub.

KUALA LUMPUR (June 20): Palm oil producer SD Guthrie Bhd (KL:SDG), formerly known as Sime Darby Plantation Bhd, and its sister company Sime Darby Property Bhd (KL:SIMEPROP) have entered into an agreement to jointly develop up to 2,000 acres of land on Carey Island, Selangor.

The two parties said the agreement, following discussions that began in 2023, will be formalised through the establishment of a special purpose vehicle (SPV), which aims to support the Selangor state government’s aspiration to transform Carey Island into an industrial and logistics hub.

The development will co-exist with the integrated palm oil operations on the island and complement the activities at Westport and Northport in Port Klang.

“We laud and greatly support this joint venture (JV) between SD Guthrie and Sime Darby Property, which aligns with national aspirations and GEAR-uP (Government-linked Enterprise Activation and Reform Programme) initiatives by the government in catalysing domestic investments," said Permodalan Nasional Bhd (PNB) president and group chief executive Datuk Abdul Rahman Ahmad in the joint statement by the two companies.

While the shareholding structure of the JV was not disclosed, the companies noted that PNB will nominate the chairman of the newly formed SPV.

SD Guthrie currently owns 79% of Carey Island, or approximately 28,646 acres, which include two palm oil estates, palm oil mills, a kernel crushing plant, a biodiesel plant, research and development facilities, a robotics and innovation centre, and a nursery.

Palm oil produced on Carey Island is processed in two major refineries located in Langat and Port Klang, serving customers worldwide. The island is also home to 14 historical buildings listed as heritage sites by Jabatan Warisan Negara, in addition to a large biodiversity park and sensitive mangrove ecosystems managed by SD Guthrie.

Complementing the existing plantation business, the new development on Carey Island is expected to drive economic growth, create job opportunities, and uplift the local economy, while preserving the site's valuable heritage elements.

Abdul Rahman added that the collaboration between PNB's two strategic companies "will provide a boost towards the sustainable development" of this high potential area as well as "help bolster further Malaysia's economic and industrialisation growth”.

According to the statement, Carey Island provides the scalability required for world-class logistics facilities, integrated supply chains and high-value industrial developments to attract global players and investments.

It added that the port will thus be well-positioned to compete with regional ports in Singapore, Thailand, and Vietnam, giving a boost to Malaysia’s aspirations to become a logistics powerhouse in the region.

"Carey Island has been identified by the government as the new site for a world-class port due to its suitable and strategic location near Port Klang, and proximity to Pulau Indah," said SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha.

"Additionally, the island is conveniently connected to the city via the South Klang Valley Expressway (SKVE) which integrates with the North-South Expressway, ensuring accessibility. The highways and connectivity offer tremendous potential for the area to grow into an industrial and logistics hub, while enabling the thriving plantation business in the area to continue,” he added.

Meanwhile, Sime Darby Property group managing director and chief executive officer Datuk Seri Azmir Merican said the partnership with SD Guthrie is a "timely opportunity to unlock value in Carey Island" as a dynamic port and advance the nation’s aspirations of becoming a regional logistics and economic hub.

"The collaboration allows us to begin master planning and designing a future-ready industrial ecosystem that will serve the needs of businesses and communities for years to come, in line with 'our Purpose to be a Value Multiplier' for people, businesses, economies and the planet,” he said.

At market close, shares of SD Guthrie fell six sen or 1.3% to RM4.49, giving the plantation giant a market capitalisation of RM31.1 billion, while Sime Darby Property slipped four sen or 2.8% to RM1.39, valuing the property firm at RM9.45 billion.

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