Johor Plantations unveils 10-year roadmap to become leading integrated palm oil producer
29/10/2024 (The Edge Malaysia), Kuala Lumpur - Johor Plantations Group Bhd (KL:JPG) on Tuesday unveiled its 10-year roadmap aimed at transforming the company into a next-generation integrated palm oil producer to lead the palm oil industry.
JPG, listed as recently as July, said in a statement that the 10-year roadmap prioritises its operational efficiency and expanding various revenue streams to ensure a sustainable future.
The roadmap comprises three pillars, including developing new income streams through circular economy; developing its downstream segment; and strengthening its upstream operations.
“Our vision is to become the globally preferred producer of premium, sustainable, and traceable oils and fats, driven by our transformative purpose of producing sustainable essentials for mankind,” JPG managing director Mohd Faris Adli Shukery said.
“As we look to the future, we are more committed than ever to elevating JPG to new heights, ensuring continuous value creation and long-term growth for our stakeholders,” Mohd Faris said.
For the first pillar, JPG wants to develop new income streams through a circular economy under its waste-to-wealth initiatives to achieve its environmental goals — greenhouse gas emissions by 2025 with net zero aspirations by 2050.
This involves utilising biogas from palm oil mill effluent to power operations and supply biomethane to Gas Malaysia Green Venture Sdn Bhd, according to Mohd Faris.
The company also plans to extract red palm oil from mesocarp fibre byproduct of processed fresh fruit bunches for use as fuel.
For the second pillar, JPG said it will explore the downstream segment of the palm oil industry. It plans to use proceeds from its recent initial public offering (IPO) to develop an integrated sustainable palm oil complex.
“This complex which will be completed by the third quarter of 2026, will consist of a refinery that will develop specialty oils and fats, powered by renewable energy, as well as a palm oil mill, a palm kernel (PK) crushing plant and an animal feed plant,” he said.
This has also enabled JPG to obtain higher-than-average Malaysian Palm Oil Board (MPOB) prices for its crude palm oil (CPO) and PK, he noted.
“The completion of the downstream refinery will allow JPG to enter the specialty oil and fats market and capture additional margins with an expanding range of product offerings,” he explained.
Meanwhile, the third pillar will focus on strengthening JPG’s upstream operations through replanting techniques, high-yielding planting material, expanded CPO production, accelerating automation as well as commercialising planting material.
“We are poised to strengthen our position as a leading force in the oil palm sector, and we are confident that these efforts will solidify our standings and drive ongoing growth for the months to come,” he added.
Shares of JPG closed down one sen or 0.95% to RM1.04 on Thursday, valuing the company at RM2.60 billion.