Malaysia's Sime Darby Plantation Shares Down With News Of Ferrero Supply Withdrawal

KUALA LUMPUR, April 15 (Bernama) -- Malaysia’s Sime Darby Plantation Bhd shares fell 5.47 per cent amid news Italian confectionary giant Ferrero was withdrawing from sourcing its palm oil. At 3.48 pm, Sime Darby Plantation’s shares slid 29 cent to US$1.18 (RM5.01) with 8.43 million units traded. It was reported that the withdrawal, believed to have taken place starting April 6 across the supply chain globally, was made following a forced labour allegation raised by the United States Customs and Border Protection. According to Reuters, the confectionery group only ordered a relatively small amount of palm oil from Sime Darby Plantation and it is not a direct purchase. It also quoted the plantation company as saying that it has taken steps with regard to human rights issues. In January, the US Customs and Border Protection said it had evidence that Sime Darby Plantation was using forced labour and this was followed with a seizure of its goods a few months later. Reuters reported that Malaysia's labour practices have come under scrutiny in the past two years, with six companies including Sime Darby Plantation banned by US customs over forced labour allegations. -- BERNAMA