KUALA LUMPUR, Johor Plantations Group Bhd (JPG) sees its new venture into the downstream segment contributing 20 per cent of the company's revenue by 2027, said its managing director Mohd Faris Adli Shukery. JPG is a wholly-owned subsidiary of Kulim (Malaysia) Bhd, which in turn is a wholly-owned subsidiary of Johor Corp. 'We are venturing into downstream processing, refining speciality oils and fats for food production and we will no longer focus on commodity-based products, but consumer products such as cocoa butter,' he told a press conference in conjunction with its listing on the Main Market of Bursa Malaysia today. The company raised RM735 million from its initial public offering (IPO), the biggest domestic IPO since 2022. Mohd Faris revealed the group plans to develop an integrated sustainable palm oil complex at Pasir Logok Estate for about RM446 million. JPG has identified Fuji Oil Asia Pte Ltd and signed an agreement with the latter for its venture into the downstream plantation business. On t he breakdown of the cost for the integrated sustainable palm oil complex, the total cost for setting up the integrated sustainable palm oil complex to be borne by the group is about RM358.4 million, of which RM171.6 million will be funded via proceeds from the public share issue. The remaining RM186.8 million will be funded through internally generated funds and external financing. On its oil palm replanting programme, he said that the group has a standard replanting rate of 4 per cent. but if there are 'fluctuations,' it will be about 5-6 per cent. It was reported that the Johor-based plantation company has a smaller plantation landbank size of 58,781 hectares. It lacks new planting activities and a higher-than-market average plantation age profile of 13.9 years. Commenting on the European Union Regulation on Deforestation-free Products (EUDR), which entered into force on Dec 30, 2024, Mohd Faris said JPG is on the right track in meeting the deforestation requirements. 'We are not really that concerned in terms of the introduction of the (EUDR) requirements. We have put in place all the necessary infrastructure and ensuring there is full traceability in terms of the oil that we produce, not just from internal, but also external sources,' he said, adding there is a good demand for JPG's oil products due to their quality and due to the certification that it has obtained. Mohd Faris also highlighted that the introduction of a windfall levy of three per cent on palm oil prices above RM3,000 ringgit per tonne in Peninsular Malaysia and above RM3,500 ringgit per ton in Sabah and Sarawak would have an impact on the plantation company. At 12.22 pm, JPG rose by 8.33 per cent to 91 sen with 1.31 million shares changing hands. Source: BERNAMA News Agency
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