Monday 22 Apr 2024
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KUALA LUMPUR (Jan 26): Johor Plantations Group Bhd has inked a venture agreement with Fuji Oil Asia Pte Ltd, a subsidiary of Japan's Fuji Oil Group, to develop a specialty oils and fats refinery operating on renewable energy.

The plantation group, which is slated for a Main Market listing on the local bourse, said the strategic partnership brings together the expertise and commitment of two industry leaders and aligns with both companies’ dedication to environmental responsibility and innovation.

According to the group, Fuji Oil Group is a renowned global food ingredient manufacturer.

“Our collaboration with Fuji Oil, a worldwide leader in food ingredients, underscores our aspiration to become an integrated palm oil player by working with international partners to produce sustainable and responsible essentials for mankind.

“These initiatives also reflect our commitment to addressing our nation’s socioeconomic needs through innovative business ventures, while ensuring that product integrity and traceability remain fundamental to our business,” said Johor Plantations managing director Mohd Faris Adli Shukery.

Meanwhile, Fuji Oil Asia MD Kunihiko Ogata said palm oil is a key raw material for Fuji Oil Group, and the organisation considers aiming for sustainable palm oil sourcing to be its societal responsibility.

“Fuji Oil Asia and Fuji Oil Group will actively engage in the supply of traceable and sustainable palm oil to contribute to society by working to solve the world’s food and health challenges,” he added.

Through the establishment of this specialty oils and fats refinery, Johor Plantations will facilitate the production of higher-value and quality palm oil derivatives and specialty products to enhance the market competitiveness for both Johor Plantations and Fuji Oil.

The additional revenue streams across the entire value chain will also help cushion the plantation group against potential risks, bolster resilience in the dynamic market environment, and allow for higher margins for the company’s palm oil products.

Earlier in January, Johor Plantations filed its prospectus exposure for its initial public offering (IPO) on Bursa Malaysia. The IPO which involves up to 875 million shares in the group, with an offer for sale of up to 411 million existing shares and the issuance of up to 464 million new shares.

Edited ByLam Jian Wyn
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