Core Business Activities
- Plantation
Plantation is IOI's biggest income generator. As at June 2009, about 65 per cent of the conglomerate profits comes from its oil palm plantations. The group operates 152,000 hectares of oil palm plantations in Malaysia and 83,000 hectares in Indonesia. It has 12 palm oil mills with total milling capacity of 4.1 million tonnes per year at its 80 estates throughout Malaysia.
With oil yield of some 6 tonnes per hectare per year at its matured estates, IOI is the most efficient plantation company in the world. Malaysia's oil palm average yield for the last 20 years is stagnant at 4 tonnes per hectare per year.
Nestlé has at least temporarily stop buying palm oil from IOI in 2012. The United Nations Environment Programme says palm oil production is the main cause of deforestation, which is occurring at a rate of about 2% per year. Indonesia is also the world's third largest carbon emitter, largely as a result of deforestation and the burning of peatlands.
- Real estate development
IOI's property businesses can be categorized into real estate development and property investment holding branching out to leisure and hospitality. The property segment contributes around 18 per cent of the group’s earnings.
- Manufacturing of oleochemicals and specialty fats
IOI is the largest vegetable oil based oleochemical manufacturer in Asia - held under wholly owned entities IOI Oleochemical Industries Bhd and Pan Century Oleochemical Sdn Bhd with a combined capacity in excess of 750,000 tonnes per annum.
These plants produce fatty acids & esters, glycerine, soap noodles, fatty alcohols, and metallic strearates - that have various industrial applications in the production of food, pharmaceutical, cosmetics, personal care, home care, industrial detergent/ surfactants and lubricant products. Products derived from oleochemicals are more readily biodegradable and hence do not pose a threat to the environment. This is because oleochemicals are derived from renewable resources, as compared to petrochemicals which are obtained from exchaustible or non-renewable petroleum.
IOI's specialty fats businesses are operated under Loders Croklaan, with manufacturing facilities in the Netherlands, North America, and in Malaysia (with combined production capacity of more than a million tonnes per year). Loders Croklaan's customer base include global food giants like Unilever, Nestle, Cadbury and Kraft. IOI's sales offices are spread out in 8 countries serving customers in 65 countries.
Specialty fats provide special function and/or unique solution in food applications and branches out to nutrition / health supplement applications. These fats are use in pastries, confectionery, snack foods and ready-to-eat meals.
- Refineries IOI owned in 2012 refineries in the U.S. and the Netherlands.
Read more about this topic: IOI Group
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