MSM Sugar Refinery (Johor) to Restart Manufacturing in June

The subsidiary of MSM Malaysia Holdings Bhd brings in new approach in their manufacturing

MSM Sugar Refinery (Johor) Sdn Bhd in Tanjung Langsat Industrial Complex, Pasir Gudang was closed since 31st March 2021

MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor), a wholly-owned subsidiary of MSM Malaysia Holdings Bhd (MSM), has finished its boiler repair works as part of its improvement programme, plans to restart sugar production and packaging on 4th June 2021.

MSM Group Chief Executive Officer Syed Feizal Syed Mohammad, said in a statement dated 1st June, that the improvement programme which forced a two-month closure at the Tanjung Langsat Industrial Complex in Pasir Gudang from 31 March 2021, not only increased the significant production utilisation factor (UF), but was also proactive on maintenance to avoid any disruptions.

“We were able to meet our domestic sales during this period by utilising the remaining available supplies at MSM Johor and MSM Prai Bhd.

“Although there was a minor disturbance in the export segment during this period, current contract values were unaffected,” he added, and that deliveries with the company’s regular clients were rescheduled amicably.

According to Syed Feizal, the improvement effort was advanced ahead of schedule as part of the group’s strategic improvement goal to improve efficiency and raise the UF for MSM Johor.

“The temporary shutdown was necessary to allow scheduled repair works with the goal of improving operational dependability and stock availability.

“MSM Johor’s annual production capacity remains at one million tonnes,” he said, adding that the company has continued to improve.

In the first quarter of 2021, the firm increased its yield to 92% from 89%, and improved its UF to 22% from 16%, compared to the same period last year, he added.

MSM Johor is likely to gradually attain its goal minimum UF rate of 50% by the third quarter of this year, according to Syed Feizal.

“We will continue to use MSM Johor as part of our major strategy to not only optimise enhanced capacity but also to transform into an integrated refining centre with more value-added products,” he said.

Syed Feizal went on to say that the group’s forays into new market segments, such as value-added liquid sugar and fine syrup, which is expected to contribute up to 14% of UF in MSM Johor.

“The move would also allow the company to expand its global position as a global integrated sugar refiner to a variety of prospective markets around the area.

“MSM Johor’s varied product development is projected to improve operational capabilities while increasing output and yield,” he added.

According to the sugar produce, all required licences from the appropriate authorities and regulatory agencies have been received.

Despite exceptional obstacles and market adversity, MSM is hopeful about maintaining its turnaround momentum and profitability growth for the year with minimum risks.