KUALA LUMPUR (Nov 5): IOI Corp Bhd (KL:IOICORP) said on Tuesday it has allocated part of its aged plantation landbank in Johor to build a solar power plant, in a move to venture into the renewable energy sector.

The group did not disclose the land size, saying the project is still in its early stages. IOI Corp's total landbank in Johor spans 23,961ha, according to the group's latest annual report.

IOI Corp managing director and CEO Datuk Lee Yeow Chor said the solar power project will be developed through a consortium comprising three or four partners.

“We’ve allocated land in Johor specifically for this solar power plant, to be developed through the consortium. It’s still early, so we can’t disclose too much yet,” Lee told reporters after the group’s annual general meeting.

The project, he said, is expected to generate additional revenue streams for the group, which is Malaysia’s second-largest palm oil producer.

Lee said IOI Corp hopes to secure regulatory approvals for the project by the first quarter of 2025.

In addition to its landbank in Johor, IOI Corp owns 18,886ha of plantation land in Pahang, 5,523ha in Negeri Sembilan, 8,998ha in Sarawak, and 119,126ha in Sabah, according to the annual report.

IOI Corp shares closed down two sen or 0.5% at RM3.95, giving the group a market capitalisation of RM24.82 billion.