MSM Johor to resume sugar production on June 4

Granulated white sugar and sugar cubes are seen in this picture illustration taken December 16, 2018. — Reuters pic
Granulated white sugar and sugar cubes are seen in this picture illustration taken December 16, 2018. — Reuters pic

KUALA LUMPUR, June 1 — MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor), a wholly-owned subsidiary of MSM Malaysia Holdings Bhd (MSM), has completed its boiler rectification works as part of its improvement programme and is expected to resume sugar production and packing on June 4, 2021.

In a statement today, MSM group chief executive officer Syed Feizal Syed Mohammad said the improvement programme, which forced a two-month closure from March 31, 2021 at the Tanjung Langsat Industrial Complex in Pasir Gudang, not only added to the significant production utilisation factor (UF) but was also proactive maintenance to avoid any disruptions.

“During this period, we managed to fulfil our domestic sales commitment by utilising the sufficient remaining available stocks in MSM Johor and MSM Prai Bhd.

“Although we had a slight disruption in the export segment during this period, there was no impact to existing contract values,” he said, adding that deliveries were amicably rescheduled ahead with the company’s regular customers.

The improvement programme, according to Syed Feizal, was accelerated in advance as part of the group’s strategic improvement plan to enhance efficiency and increase the UF for MSM Johor.

“The temporary closure was to allow planned rectification works and targeting higher operational reliability and stocks availability.

“MSM Johor’s production capacity remains at one million tonnes per annum and continued to record significant improvement,” he said.

Syed Feizal noted that there had been no financial impact on the group’s profitability as a result of the exercise.

The company recorded an increase in yield to 92 per cent from 89 per cent and improved UF to 22 per cent from 16 per cent for the first quarter of 2021 against the same period last year, he said.

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Progressively, MSM Johor is expected to reach its targeted minimum UF rate of 50 per cent by the third quarter this year, said Syed Feizal.

“We shall continue to leverage on the prospect of MSM Johor as part of our key strategy to not only optimise the expanded capacity but enhance into an integrated refining centre with greater value-added products,” he said.

Syed Feizal added that the group’s ventures into new market segmentation with upgraded capacity for value-added liquid sugar and fine syrup were projected to contribute up to 14 per cent of UF in MSM Johor.

“The move would also pave the way for the group to expand its global presence as a worldwide integrated sugar refiner to various potential markets across the region.

“The diversified product development through MSM Johor is expected to enhance operational capabilities while improving production and yield,” he said.

According to the sugar producer, all necessary approvals from the relevant authorities and regulatory bodies have been obtained to restart operations.

“The work and procedure have been certified to be in full compliance with the standard industry requirements and policies, particularly in the aspects of safety and quality,” it said.

MSM added that it remains optimistic to maintain its turnaround momentum and profitability growth for the year with minimal risks despite unprecedented challenges and market adversities. — Bernama


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