IOI Corporation Bhd has recently signed a joint-venture (JV) agreement with Mega Star Holding Pte Ltd to develop Malaysia’s first integrated and sustainable coconut mill complex in Segamat, Johor at an investment of RM100 million (US$24.1 million).
Mega Star is a Singapore-based investment firm linked to Ting Hsin International Group, a China-based conglomerate which has extensive food and beverage business across China and Taiwan.
IOI said in a statement that the coconut mill complex will have a processing capacity of 100,000 coconuts per day and will commence operation in 4th quarter 2027.
It will be located near IOI’s 3,700 hectare of coconut plantation in Johor and next to the Inland Port of Segamat, which enables IOI to efficiently supply coconuts to its plant, while the port location facilitates logistics of its final end-products.
The new plant (complex) is expected to scale up production to 300,000 coconuts per day as the existing trees mature and IOI’s coconut plantations are expanded to approximately 5,000 hectares within the next 2 years.
Datuk Lee Yeow Chor, IOI Group Managing Director said the JV marks a significant milestone for IOI as it expands into the lucrative coconut segment.
He said, “By combining IOI’s operational excellence and access to the international edible oil market as well as Mega Star’s strong market access to the food and beverage sector in China, we aim to deliver high quality and sustainable coconut products to meet the growing market demand.”
According to IOI, the group will offtake and market the coconut oil to its associate companies and customers in the EU and the US under the joint venture.
Meanwhile, Mega Star will leverage its group network to offtake and market the concentrated coconut water to China and other Northeast Asian countries.
