KUALA LUMPUR (April 7): Specialty chemicals manufacturer SumiSaujana Group Bhd (KL:SUMI), which is set to list on Bursa Malaysia’s ACE Market this month, has entered into an agreement with the Malaysian Palm Oil Board (MPOB) to manufacture and market palm-based intermediates and polyols for use in global industrial applications.

The licensing and commercialisation agreement grants SumiSaujana's wholly owned subsidiary SumiSaujana TCM Chemicals Sdn Bhd (SSTCM) the rights to use MPOB-developed technology to manufacture and commercialise palm-based polyols and bio-based polyester polyols. 

The two products serve as renewable raw materials in the production of polyurethane and other industrial products, including adhesives, paints, coatings, rubber, and textiles.

Under the terms of the agreement, SSTCM will pay the MPOB a one-off licensing fee of RM800,000 in stages over five years, in addition to a 2% royalty fee on gross sales revenue from products manufactured using the licensed technology. 

The licence is granted on a limited exclusivity basis for five years, and may be extended subject to terms set out in the agreement.

“This agreement with the MPOB represents a meaningful step in our long-term growth strategy,” SumiSaujana executive director and chief executive officer Norazlam Norbi said in a statement on Monday. 

“We see tremendous value in integrating sustainable palm-based innovations into our product portfolio, enabling us to serve new markets while remaining aligned with the global shift towards environmentally responsible manufacturing.”

The licensed technologies, developed by the MPOB through in-house research, offer renewable alternatives to petroleum-based chemicals used in polyurethane production, which serves multiple sectors, including automotive, construction, adhesives, coatings, and consumer goods.

The agreement also forms part of the MPOB’s efforts to strengthen downstream applications of palm oil, in line with the Public-Private Partnership Master Plan (PIKAS) 2030, which aims to position Malaysia as a global hub for sustainable and bio-based technologies.

“This collaboration signifies more than just technology transfer. It reinforces the role of public-private synergy in sustainable industrial development,” said MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir. 

“By expanding the downstream potential of palm oil, we are not only elevating its value chain, but also promoting Malaysia’s role in climate-conscious manufacturing.”

SumiSaujana's initial public offering, with an aim to raise about RM74.4 million, was oversubscribed 1.85 times by retail investors ahead of its listing on the ACE Market.

The listing offers up to a 27.71% stake in the company. The stock is scheduled to be listed on Wednesday (April 9) at 24 sen apiece, valuing the group at RM346.5 million. 

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