KUALA LUMPUR (Dec 20): Johor Plantations Group Bh (KL:JPG) has appointed Tg Langsat Development Sdn Bhd (TLD) as an earthwork and main infrastructure contractor for its Integrated Sustainable Palm Oil Complex (iSPOC) project in Johor for RM39.04 million.

Located in the Pasir Logok Estate, Kota Tinggi, iSPOC will integrate various stages of palm oil production. This includes specialty oils and fats refining, renewable energy generation, palm oil milling, kernel crushing, and animal feed production within a single complex.

“Scheduled for completion in the second half of 2026, this integrated approach aims to enhance efficiency, expand JPG’s value chain and product offerings, improve cost-effectiveness, and strengthen its competitiveness in the palm oil industry.

“Furthermore, iSPOC is expected to drive economic growth, create jobs, and solidify JPG’s position as a key driver of Johor’s economic transformation,” said JPG in a statement.

According to JPG, TLD has successfully completed various projects in Johor for TPM Technopark Sdn Bhd and the Iskandar Regional Development Authority, ranging from routine maintenance to public works projects.

Currently, TLD is undertaking infrastructure projects and earthworks at Sedenak Technology Park as part of the Ibrahim Technopolis development.

The contract is deemed as a related party transaction as TLD is a wholly owned unit of TPM Technopark, which in turn is a wholly owned subsidiary of Johor Corporation (JCorp).

Kulim (Malaysia) Sdn Bhd — a wholly owned unit of JCorp — is the largest shareholder in JPG with a 65% stake.

JPG non-independent non-executive chairman Tan Sri Dr Ismail Bakar is connected to JCorp in his capacity as deputy chairman of JCorp.

Similarly, JPG non-independent non-executive director Datuk Hisham Jafrey also serves as a director of JCorp, while JPG non-independent non-executive director Shamsul Anuar Abdul Majid is a board representative of JCorp.

Shares of JPG closed down two sen or 1.56% at RM1.26 on Friday, giving the palm oil producer a market capitalisation of RM3.2 billion.