Olam to invest in rubber in Gabon

ERJ staff report (DS)

Singapore - Singapore-based plantation company Olam International Ltd, is to develop up to 50,000 hectares of land in Gabon for rubber plantations. The first-phase investment is $183 million.

The development will be carried out through an 80-20 joint venture with the Government of the Republic of Gabon, in which Olam takes the majority stake. Phase 1 involves 28,000 ha of land.

Based on the progress in Phase I, the JV plans to develop an additional 22,000 hectares in Phase II taking the total plantings to 50,000 hectares making it one of the largest plantations in Africa.

Planting is expected to commence by FY2013 and be completed by FY2019. The plantation is expected to achieve an average yield between 2.0 and 2.2 tonnes per hectare. The investment includes setting up a processing unit with a capacity to process 225 tonnes per day of rubber cup lumps. At full maturity, the project will generate annual volumes of approximately 62,000 tonnes of dry rubber. The rubber products will be exported to the tyre and general rubber goods industries worldwide.

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Press release from Olam