Malaysia’s first corn-based ethanol plant sets regional benchmark
Chemical Industries (Malaya) Sdn Bhd (CIM), a Hexza Corporation unit, has inaugurated Malaysia’s first corn-based ethanol plant in Ipoh. The facility marks a major shift from molasses to corn, enabling circular production and sustainable feed output. CIM aims to lead Southeast Asia’s ethanol market through innovation and ESG.
IPOH: Chemical Industries (Malaya) Sdn Bhd (CIM), a subsidiary of public-listed Hexza Corporation Bhd, has inaugurated its state-of-the-art corn-based ethanol plant in Persiaran Tasek, Ipoh, marking a significant milestone in the company’s growth and innovation journey.
The new plant exemplifies CIM’s unwavering commitment to quality, sustainability, and the advancement of its operations through modern, circular production methods.
In the 1960s, as Malaysia was just beginning to shape its industrial identity, one visionary entrepreneur saw a future powered by ethanol.
That man was Datuk Dr Foong Weng Sum, a medical doctor by training, a pioneer in chemical manufacturing and the founder of Hexza, a conglomerate which has been listed on Bursa Malaysia since 1979.
Under the Hexza banner, he established CIM as Malaysia’s first and largest ethanol producer, marking a historic milestone.
At a time when ethanol was largely associated with alcoholic beverages, Dr Foong saw significant industrial potential for ethanol, such as for pharmaceutical, advance manufacturing, cosmetics, fragrance and household care products.
His foresight was validated when a large multinational pharmaceutical customer awarded CIM a certificate of recognition for its product quality and service excellence in 1996.
“I foresaw a future where ethanol would be indispensable, as a raw material for production across multiple industries and as a bio-fuel. My vision is to position Malaysia as a key player in the ethanol and overall chemical industry space,” he said.
CIM has a rich legacy as Malaysia’s first ethanol producer, having commenced operations in 1962.
Today, CIM is Malaysia’s largest ethanol producer by capacity and the only manufacturer in the country to use corn as a raw material, reflecting a forward-thinking approach to sustainability and innovation.
Hexza executive director Foong Leon Chiew, the eldest son of Dr Foong, said that CIM previously relied on molasses as its primary raw material for ethanol production.
He said that changed this year when the company installed a new corn-based ethanol plant with a capacity of up to 10 million litres annually.
“The new corn-based ethanol plant will not only underscore CIM’s position as the leading ethanol manufacturer in Malaysia with a strong commitment to producing high quality ethanol, but also the company’s commitment tow circular economy principles,” he said.
“In a strategic shift from molasses to corn as a primary feedstock, CIM now produces ethanol through natural fermentation and distillation using high-quality corn from Brazil and Argentina.
“A key by-product of this process, called Distiller’s Dried Grains with Solubles (DDGS), is repurposed into high-value livestock feed, reinforcing CIM’s adoption of sustainable production principles.
“This makes CIM the first and only manufacturer and supplier of locally produced DDGS in Malaysia, helping to reduce dependence on imported animal feed and supporting both food security and sustainable agriculture.
“This transition is not just about capacity expansion and efficiency, but it’s also about responsibility,” said Foong, who has an engineering degree from the University of Oxford and an MBA degree from the Wharton School, University of Pennsylvania.
Foong has previously worked in the investment banking industry for 17 years in Hong Kong.
He added that CIM produces a wide range of ethanol products, from 96 per cent industrial ethanol to absolute ethanol, serving diverse industries including pharmaceuticals, advance manufacturing, cosmetics, home care, food and beverages.
“Our ethanol has many use cases, such as chemical feedstock or solvent for pharmaceutical products and vaccine development, catheter storage and sterilisation, cosmetics, perfumes, home care products, and food and beverage production.
“Through our subsidiary, Bio-Acetic Products, CIM also produces and sells natural vinegar, further strengthening our product line.”
While the majority of its customers are in Malaysia, Foong said CIM has begun exporting to neighbouring countries such as Singapore, and is exploring opportunities to expand across Southeast Asia.
Located at the Tasek Industrial Area in Ipoh, CIM’s integrated facility manages the entire ethanol production process in-house, from corn intake and milling to liquefaction, fermentation, distillation and DDGS production.
The site also has storage warehouses, bagging lines and a bottling operation, potentially signalling a future return to branded beverage production.
“We combine time-tested fermentation and distillation methods with modern monitoring systems. This blend of tradition and technology ensures consistent quality and efficiency.
“CIM has had a long-standing presence in Perak. This latest expansion into corn-based ethanol production not only reflects the company’s commitment to innovation and sustainability but also reinforces its belief in Perak as a preferred destination for high-value and future-ready investments.
“CIM plans to continue to contribute meaningfully to the state’s industrial growth, job creation and advancement of a circular economy.”
Beyond the corn-based operations, Foong said CIM is actively exploring solar power and carbon footprint reduction initiatives as part of its environmental, social and governance (ESG) strategy.
“We aim to lead not just in volume but also in responsible production. From renewable energy adoption to carbon footprint reduction, we aim to set new benchmarks for the industry.”
On how the company maintained its leadership in the domestic ethanol market through the years, Foong attributed it to three core drivers: production scale and quality, long-term customer relationships, and a proactive sustainability agenda.
“Our corn-based plant allows us to produce 24/7 with minimal waste. We’re proud to operate Malaysia’s first corn ethanol plant with a strong commitment to ESG.
“Quality supply is important, but demand is built on trust. Our customers have stayed with us for decades, thanks to the high quality of our products and the reliability of our logistics and service,” he added.
Looking ahead, he said CIM is targeting organic growth and potential strategic acquisitions as it pursues regional expansion, product innovation and other growth opportunities.
“We are already the national leader. Now, we are targeting to become the regional champion. Our vision is to deliver high-quality ethanol and related products from Malaysia to Southeast Asia and beyond,” he said.
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Source : The Business Times
