IOI Use Oil Palm Trunks To Create A Better World
31/12/2021Corporate Communications

Malaysia has approximately 14.5 million acres of oil palm trees that needed to be replanted every 20 to 25 years. Felled trees provide an abundant source of OPT. (File pic by IOI Corporation).

What happens to oil palm trees that are felled yearly for replanting? Do you know the oil palm trunks (OPT) are left to rot in the fields, and they take years to decompose, causing massive waste and environmental damage?

Instead of letting OPT rot and decompose in the plantation fields after replanting, which will cause eco-waste and environmental damage, IOI Corporation Berhad (IOI) embarked on an initiative to utilise OPT to produce high-performance palm boards and panels in 2020. This initiative is in line with our Strategic Priority 4 to convert oil palm by-products and processing waste into value-added products at a competitive cost and aligns with our Group-wide Climate Change Action Initiative to address climate change.

IOI Palm Wood

Our subsidiary, IOI Palm Wood Sdn Bhd (IPW) was established as Malaysia’s first manufacturing plant to commercially and sustainably convert unused OPT into eco-friendly, sustainable and high-performance wood panels for the furniture and building industries.

Apart from creating additional wealth for the economy through the oil palm sector, IPW is also helping to reduce deforestation and greenhouse gas emissions. For every cubic metre of palm wood produced, we can capture approximately 250 kg of carbon, which would otherwise be released into the atmosphere as carbon dioxide or methane.

A special avant-garde bench made with palm wood, which is lighter but also stronger and more eco-friendly. (File pic by IOI Corporation).

High-Performance Materials, Produced Sustainably

IPW’s OnCore brand, which offers a range of high-performance products including Kiln Dried Palm Wood, Blockboards, Palm Wood Panels and Palm Wood Core materials are designed to meet the rising demand for high-quality wood panel solutions.
The name OnCore refers to palm wood’s core of inner fibres that are like ‘reinforced concrete’ that gives the wood its ultimate strength. Stronger than conventional timber, palm wood is also lighter and more eco-friendly.

The production of palm wood is supported by our innovative manufacturing processes and customised leading-edge technologies from Germany. As we aspire to offer a range of high performing and environmentally sustainable wood that conform to international standards and certifications for quality and safety, the OnCore brand will be marketed to an expanding demand of office, household furniture and building construction materials.

Visitors can find various information about IOI Palm Wood and our sustainability commitments at IOI Information Hub. (File pic by IOI Corporation).

Come and check out our latest IOI Information Hub and our sustainable innovations at IOI City Mall, Ground Floor East Wing (in front of MUJI Store) now. Follow us on our Instagram for more updates.