MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor), a subsidiary of MSM (M) Holdings Bhd, has opened its new facility in Tanjung Langsat, Johor, reported The Malaysian Reserve.
The company hosted members of the media for an informative tour, underscoring its dedication to enhancing operational reliability and strategically increasing sugar exports within the country.
MSM Group Chief Operating Officer, Hasni Ahmad, explained that as part of its efficiency improvement strategy, MSM Johor is focusing on increasing its utilization factor (UF). This initiative aims to lower refining costs under its control while simultaneously enhancing operational reliability.
“The sugar market price is beyond our control. So, the strategy this year is to increase the UF, optimize costs in terms of the controllable price,” he stated during a media visit to MSM Johor on Jan 16.
In 2024, MSM Johor aims to raise UF to 50%, up from 27% in 2023, as part of the effort to strengthen the company’s position in the sugar export market. The group achieved a breakeven utilization rate of 40% in 2023, marking further growth. This UF enhancement aligns with MSM Johor’s vision of becoming a world-class sugar refining center and expanding its export markets.
“There is tremendous headroom to grow exports with an over five million tonnes per year market in the Asia Pacific (APAC) region, where MSM Johor has a geo-strategic advantage in the supply chain of retail and industry,” added Hasni Ahmad.
This year, one of the primary focuses is to enhance efficiency and reliability by minimizing refining costs, covering various elements such as utilities and natural gas, which constitutes approximately 70% of the overall production cost.
Located in an integrated complex on a 50.63-acre (20.49ha) land plot in Tanjung Langsat, the new factory began operations in November 2018 and became fully commercialized by April 2019.
Currently, MSM Group has an annual refined sugar production capacity of up to 2.05 million tonnes, including MSM’s Prai refinery in Penang with a capacity of 1.05 million tonnes, and the Tanjung Langsat facility in Johor, producing one million tonnes annually.
