KUALA LUMPUR (Nov 18): Johor Plantations Group Bhd (KL:JPG) said on Monday that it has appointed Johor Corporation (JCorp) affiliated company JL Projects Sdn Bhd as the project manager consortium (PMC) for the construction of its integrated sustainable palm oil complex (ISPOC) for RM30.99 million.

In the bourse filing, Johor Plantations said the three-year contract sum represents 9.9% of the ISPOC’s estimated gross development cost, which works out to be RM313.04 million.

The refinery is expected to be completed by mid-2026.

Japanese oils and fats company Fuji Oil Asia Pte Ltd is the builder for the refinery located in Pasir Logok, Kota Tinggi.

JL Projects is a wholly owned by JLand Group Sdn Bhd, which in turn is 100% owned by JCorp, the largest shareholder of Johor Plantations with a 65% stake.

The group said JL Projects has considerable experience in managing projects on Malay reserved land, ensuring compliance with the relevant regulations by collaborating closely with government agencies. “With an emphasis on accountability and transparency, JL Projects' proven ability to handle complex projects makes them a suitable candidate to oversee the management of the construction of the ISPOC project via the proposed appointment of PMC,” it added.

The ISPOC is a large-scale facility that combines several stages of the palm oil production process in a single location. It comprises a palm oil mill, a specialty fats refinery, a kernel crushing plant, a bio-energy power plant as well as an animal feedmill in a single location.

This, the plantation company said, will allow it to integrate along the palm oil value chain involving its estate operations, mill operations, renewable energy processing and specialty fats refinery, given the close proximity of these facilities with its estate, thus improving the group's overall cost effectiveness. This will enable Johor Plantations to better diversify its product offerings and enhance its competitiveness in the plantation market.

Shares in Johor Plantations closed five sen or 3.8% higher at RM1.38 on Monday, giving it a market capitalisation of RM3.45 billion. Listed on July 9, the stock has risen 64.3% from its listing price of 84 sen.