PUTRAJAYA: SumiSaujana Group, a Petronas-licensed manufacturer specialising in the formulation, manufacturing and supply of drilling fluid chemicals, and production, and refinery chemicals for the upstream, midstream, and downstream segments in the oil and gas industry, is branching into the specialty chemicals industry.
The group has signed a licensing and commercialisation agreement with the Malaysian Palm Oil Board (MPOB) to produce and sell three types of palm-based chemicals – palm-based intermediates, palm-based polyols and bio-based polyester polyols.
SumiSaujana executive director/CEO Norazlam Norbi said these palm-based chemicals are renewable alternatives to petroleum-based chemicals mainly used in polyurethane production, which supports industries like automotive, construction, adhesives, coatings, and more.
“The global market for polyurethane alone is worth over US$86 billion (RM384.72 billion), and palm-based intermediates are valued at US$17 billion. This shows huge potential for Malaysia’s palm oil innovations to tap into these markets,” he said at the signing of a memorandum of agreement, which includes licensing and commercialisation, between the company and MPOB today.
At a press conference later, Norazlam said the first product launch could happen as soon as late 2025, while full rollout of all three technologies is targeted within a year from now. “We expect one of the products can be commercialised within six months, and all three should be commercialised within a year, working closely with MPOB.”
Norazlam said no major new investment is needed because they have already started expanding their plant in anticipation of this project.
A new production line called “Trade Three” was commissioned in late December 2024, which gives them the infrastructure needed to support this new venture.
“Depending on further R&D with MPOB, we won’t need much more investment to begin production,” Noralzam said.
MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir said this collaboration would provide the industry players with the opportunity to explore the potential of MPOB’s innovative technologies and contribute to the growth of a more sustainable and competitive chemical industry at the global level.
“By expanding the downstream potential of palm oil, we are not only elevating its value chain but also promoting Malaysia’s role in climate-conscious manufacturing.”
He said the partnership reflects MPOB’s broader research and development strategy to enhance the commercial value of palm oil through high-value downstream applications. “It also supports Malaysia’s Public-Private Partnership Master Plan 2030, which aims to position the country as a global hub for sustainable and bio-based technology.”
