Johor Plantations Group Berhad (JPG) marked a historic milestone with the groundbreaking of the Integrated Sustainable Palm Oil Complex (iSPOC), located at the group’s Pasir Logok estate in Sedili.
This groundbreaking signifies JPG’s mission of becoming a next-generation integrated palm oil company, reinforcing its commitment to sustainability, innovation, and responsible palm oil production.
Through its role as a catalyst for economic growth in the state, iSPOC is one of the key enablers of realising the Maju Johor 2030 sustainable economic development.
“The iSPOC will play a significant role by driving job creation, stimulating economic activity, and cultivating a skilled workforce to support Johor’s industrial growth. This project demonstrates JPG’s leadership in sustainable palm oil and supports the state’s vision for the new economy. We congratulate the Johor Corporation Group and JPG for developing such an important project to strengthen Johor’s economy and drive its long-term growth and development,” said Dato’ Onn Hafiz Ghazi, Menteri Besar Johor, in his speech at the groundbreaking ceremony.
As one of the core projects of JPG’s 10-Year Roadmap, iSPOC is key to driving the Group’s strategic pillar of downstream expansion into speciality oils and fats production. This state-of-the-art integrated complex houses a speciality oils and fats refinery, a palm oil mill, a palm kernel plant, an animal feed mill and a research and development centre.
The iSPOC stands out as the first facility of its kind to fully embrace a circular economy model. It maximises resource utilisation by generating renewable energy from the biomass and biogas produced as by-products of the palm oil mill. This innovative approach aligns perfectly with JPG’s goals for carbon emission reduction and also reinforces Johor’s broader commitment to sustainable and responsible business practices.
Through a joint venture with Fuji Oil Asia Pte. Ltd. (Fuji Oil), JPG Fuji Sdn Bhd (JPG Fuji) was established to develop the refinery, with JPG holding a 51% stake and Fuji Oil the remaining 49%.
This partnership leverages Fuji Oil’s extensive expertise in the speciality fats market while securing off-takers for iSPOC’s products. The iSPOC is projected to drive exponential growth for JPG by expanding its downstream product portfolio and improving margins through consolidated manufacturing.
The project is poised to act as a catalyst for socioeconomic development in Sedili, bringing investment and economic opportunities to the district and local communities.
The project is expected to generate 250 direct job opportunities, with a strong focus on developing local talents as well as multiplying effects for other job opportunities arising from the iSPOC.
Furthermore, iSPOC will build on the success of JPG’s Smallholder Inclusion Programme, which currently benefits 289 smallholders in Johor by improving access to RSPO certification and market opportunities.
The initiatives under iSPOC will also enhance local talent retention, drive research and development through the Centre of Excellence and develop key industries such as food production and green technologies.
“The iSPOC marks a defining moment in JPG’s transformation. By integrating sustainability and innovation, we strengthen our business, set industry benchmarks, and drive long-term value for stakeholders. iSPOC embodies our commitment to producing sustainable essentials for mankind, empowering communities and solidifying Johor’s leadership in agribusiness,” said Tan Sri Dato’ Sri Dr Ismail Bakar, Chairman of Johor Plantations Group.
Scheduled for commissioning in the third quarter of 2026, iSPOC is expected to be a cornerstone of Johor’s economic and environmental sustainability efforts as well as supporting Malaysia’s Environmental, Social, and Governance (ESG) agenda.
Johor Plantations Group Berhad (JPG) is a subsidiary of Kulim (Malaysia) Berhad, which in turn is a wholly owned subsidiary of Johor Corporation (JCorp). JPG is principally involved in the production of crude palm oil and palm kernels. It primarily owns, manages, and cultivates oil palms and harvests fresh fruit bunches produced on the plantation estates that it owns or rents in Malaysia, primarily in the state of Johor. The subsidiaries of JPG are principally involved in the production of palm oil and palm kernels, the production of biomethane, the dealer of agricultural machinery and parts for plantation use, the sales of oil palm seedlings and other plantation products and services, the provision of training and safety-related services, along with the supply of safety products and refining of oil palm and trading of palm oil products.
JPG was listed on the main market of Bursa Malaysia on 9th July 2024.
