IOI Group’s resource-based manufacturing business is essentially the downstream activities in its palm value chain. It consists of refining of crude palm oil, and the processing of refined palm oil and palm kernel oil into oleochemicals and specialty oils and fats products which are used in various industries such as food, personal care, households, pharmaceutical, and cosmetics and chemicals. Its manufacturing facilities in Malaysia, the Netherlands, USA, Canada, Germany and the People’s Republic of China are well-equipped to meet the needs of its customers worldwide.
The Group has a strong supply chain support linking these manufacturing operations – covering global sales and marketing, import and export activities, logistic planning and procurement, price risk and foreign exchange risk management – to form an integrated global palm value chain.
This palm value chain offers the following strategic advantages to the Group:
- Optimal turnaround time ensuring product quality is not compromised.
- Quality control of products along the value chain.
- Traceability of resources utilised.
- A form of hedging against upstream commodity price cycles.