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Johor, Japan's Fuji Oil to develop RM500 mil palm oil refinery in Kota Tinggi

ISKANDAR PUTERI: Johor has signed an agreement with Japanese food industry leader Fuji Oil Holdings Inc. (Fuji Oil) to build a RM500 million specialized palm oil and fats refinery in Pasir Logok, Kota Tinggi.

The agreement to develop the project, which is part of the Integrated Sustainable Palm Oil Complex (ISPOC), was signed between Johor Plantations Group Bhd (JPG) and Fuji Oil's subsidiary, Fuji Oil Asia Pte. Ltd.

The agreement was signed during a recent visit by the Johor state delegation, led by Johor Menteri Besar Datuk Onn Hafiz Ghazi and representatives from the state government, to Fuji Oil Holdings' facilities in Osaka, Japan.

The delegation toured manufacturing sites, tank terminals, and a refinery plant to observe production processes firsthand.

The tour included a closer look at Fuji Oil's chocolate production line, showcasing products made from palm oil-derived ingredients supplied by Fuji Oil, which are widely sold in supermarkets and convenience stores.

Onn Hafiz, in a post on his Facebook page, said the ISPOC refinery, which is expected to be completed by the middle of 2026, will bring advanced refining capabilities to Johor, aligning with sustainable practices in palm oil production.

He added that the collaboration also aims to foster local workforce development, with discussions initiated on specialised training and skill-building programmes for Johor's labour force to meet industry demands and improve competitiveness,

"We believe this partnership will benefit both Fuji Oil and Johor Plantations Group, not only advancing food production and processing but also contributing to the economic growth and sustainability of Johor," he said.

The strategic partnership is anticipated to boost Johor's economy, support sustainable industry practices, and provide new employment opportunities for the region, reflecting a commitment to sustainable and inclusive development for the state and its people.

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