KUALA LUMPUR: MSM Malaysia Holdings Bhd (MSM) aims to export 45,000 metric tonnes of grain sugar to China this year, after its successful trial last year.
Group chief executive officer Syed Faizal Syed Mohammad said the successful trial shipment of 1,000 kg of grain sugar in 2023 was a significant milestone for the refined sugar producer.
"MSM has a 100,000 to 200,000 metric tonnes per annum target in the medium term for China with available capacity headroom from MSM Johor refinery through an ongoing ramp-up programme.
"This landmark agreement underscores MSM's strategic focus on international expansion and further solidifies our strong acceptance into the Chinese market," he said in a statement announcing an expanded partnership with China Food Trading (COFCO).
According to the statement, MSM expanded its partnership with the prominent Chinese state-owned food and agriculture enterprise to include the export of grain sugar.
It stated that the partnership enable MSM to export high-quality grain sugar to China through COFCO, reflecting both companies' commitment to excellence and sustainable practices.
MSM's trade relations with China began in 2019 with the supply of liquid sugar to COFCO.
In 2023, MSM's sugar exports to China expand twofold to 32,790 metric tonnes from 16,258 metric tonnes in 2022.
MSM said that the growth highlighted robust production capabilities and reinforcing its reputation for delivering products that meet international standards, demonstrates the company's growing market share in the China sugar market.
China is one of the top five export destinations for MSM alongside the Philippines, Singapore, Indonesia and Vietnam.
"We were honoured to host several delegations from China at MSM Johor since last year. This visit showcased MSM Johor's extensive capacity, facilities, and capabilities as we continue to strive towards becoming a world-class sugar refining centre, underscoring our commitment to quality, excellence and innovation in the industry," Syed Feizal added.
With the addition of two new refined sugar warehouses, MSM Johor is poised to expand its internal storage capacity, install additional packing lines, and reduce reliance on external warehouse rentals and achieving better supply chain cost efficiencies.
MSM Johor location is geostrategic to meet growing demand in China and further its goal of becoming an integrated sugar refining centre including offering value-added products such as liquid sugar and premix.