Business Review: Oils & Fats Division CHEMICAL MANUFACTURING Market Expansion Focusing on higher-margin segments such as food and Kosher/Halal applications. By-product Management Minimising low-value by-products through innovation and asset optimisation. Operational Excellence Enhancing plant reliability, cost control, safety, and environmental performance. Manufacturing PME & Glycerine Leveraging advanced technology in the production of highquality PME and glycerine premium grade. Effective Waste Management Incorporating innovative waste management strategies by reducing, reusing, and recycling by-products from PME and glycerine production processes. BUSINESS ENVIRONMENT BIODIESEL Global commodity price volatility, particularly fluctuations in palm oil prices and the diesel price rationalisation in Malaysia, posed significant challenges to our operations and demand landscape. This was reflected in a 3% decline in biodiesel sales volume due to lower diesel demand. Despite these pressures, we successfully navigated market uncertainties through targeted customer relationship management strategies, productivity enhancements, and improved plant reliability. These measures reinforced operational efficiency, ensured business continuity, and strengthened our ability to adapt to shifting market conditions. OLEOCHEMICALS Rising feedstock prices created an unstable demand environment for our product range. Initially, animal fats were priced more competitively than vegetable-based alternatives, leading to margin pressures. However, as the price gap narrowed, we capitalised on our fully vegetable-based platform to regain market share, resulting to an 18% surge in oleochemical sales volume as consumer demand grew across all market segments. By offering tailored solutions aligned with evolving customer needs, we not only restored margins but also strengthened our market position amid increasing volatility. WHO ARE WE AND WHAT WE DO FGV’s Chemical Manufacturing cluster offers a diverse portfolio of bio-based chemicals and specialty products, delivering high-quality solutions across industries. With plants in Malaysia and the United States (U.S) the business focuses on sustainability through the production of oleochemicals and biodiesel, supporting efforts to reduce environmental impact. Using advanced technology and eco-friendly processes, FGV manufactures coconut and palm fatty acids, palm methyl ester (PME), and glycerine, while integrating waste-to-wealth solutions. By leveraging innovation and a responsible supply chain, this cluster continues to provide value-added, sustainable solutions for global and domestic markets. KEY FOCUS AREAS FGV continues to expand its chemical offerings to meet industry needs with enhanced product quality. 96 FGV Holdings Berhad | Annual Integrated Report 2024
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