Newly Launched FGV Refinery Brings Prospects of New Product Offerings

KUANTAN, 6 February - FGV Holdings Berhad (FGV) marked a significant milestone with the inauguration of its new Fract750 Refinery Plant at Kuantan Port. This facility signifies FGV's strategic expansion into premium product offerings, such as high IV Olein (IV60-IV65) and hard stearin.

The event was launched by Yang Berhormat Dato' Mohamad Nizar bin Dato' Sri Mohamad Najib, Pahang EXCO of Investment, Industry, Science, Technology & Innovation, marking not only the establishment of the new facility, but also a commitment to local economic growth.

From left: Vino Kumar Balakrishnan, Chief Executive Officer of Kuantan Port Consortium Sdn. Bhd, Haji Mohamad Fadzil Hitam, Board Members of FGV Holdings Berhad, Dato' Mohamad Nizar Dato' Sri Mohamad Najib, Pahang EXCO of Investment, Industry, Science, Technology & Innovation, Fakhrunniam Othman, Group Divisional Director, Logistics & Support Division and Mohd Djunadi Samsuddin, Chief Executive Officer of FGV Refineries Sdn Bhd

"The new refinery not only allows FGV to explore new areas in specialty fat products but also contributes to the development of a specialised industry in Kuantan. This not only diversifies the local economy but also positions Kuantan as a hub for innovative and premium fat products, potentially attracting further investment and business opportunities," said Dato' Nizar.

He added, "Equipped with modern technology, the new plant will create job opportunities for local youth in Pahang. The Pahang government welcomes new developments and investments that help to provide avenues for skilling and training in advanced sectors such as the palm oil and specialty fats industry."

The new FRACT750 Refinery is the first plant in the east coast region to feature the Desmet iConFract System, which incorporates an innovative 30-bar filter press technology. The technology helps in enhancing efficiency, streamlining premium downstream product production, and enabling precise separation of various fractions during the refining process.

FGV Holdings Berhad (FGV) marked a significant milestone with the inauguration of its new Fract750 Refinery Plant at Kuantan Port

Dato' Nazrul Mansor, Group Chief Executive Officer of FGV said, "The introduction of the new facility will strategically position FGV to serve emerging industries, with anticipated volume production of 150,000 MT per annum. The inauguration of the new plant represents yet another strategic move for FGV, enhancing cost-efficiency by leveraging high free fatty acid (FFA) feedstock, a by-product of crude palm oil milling and refining to produce palm methyl ester (PME)."

FGV's operations in Pahang stretch across 136,617 hectares of plantation estate, 28 mills, along with crushing, refining, fractionation and distillation plant, in addition to bulking and warehousing facilities, as well as a strategically positioned logistic depot. In 2023, FGV purchased and processed a total of 4.91 million MT of fresh fruit bunches (FFB) in Pahang worth RM3.75 billion; in which 66 percent of FFB came from FELDA smallholders, while the remaining 34 percent were purchased from independent smallholders.

"As the world's leading producer of crude palm oil (CPO), FGV continues to solidify its position. With the establishment of this new plant, FGV will be able to produce premium palm olein and explore new markets, thus further strengthening FGV's position as leader in the global palm oil market," said Dato' Nazrul.

Operated by its subsidiary, FGV Refineries Sdn. Bhd., this plant plays a vital role in the Group's business ecosystem, completing the supply chain. The Group remains committed to sustainability and responsible practices, ensuring a balanced and thriving future for both the industry and the communities it serves.

ENDS

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