• 2025-07-27 08:10 PM

PETALING JAYA: Chemical Industries (Malaya) Sdn Bhd (CIM), a subsidiary of listed Hexza Corporation Bhd, on Friday inaugurated a state-of-the-art corn-based ethanol production facility in Persiaran Tasek, Ipoh, marking a significant milestone in the company’s growth and innovation journey.

CIM said in a statement that the new plant exemplifies its commitment to quality, sustainability and the advancement of its operations through modern, circular production methods.

In a strategic shift from molasses to corn as its primary feedstock, CIM now produces ethanol through natural fermentation and distillation using high-quality corn.

A key byproduct of this process – distiller’s dried grains with solubles (DDGS) – is repurposed into high-value livestock feed, reinforcing CIM’s adoption of circular economy principles. This makes CIM the first manufacturer and supplier of locally produced DDGS in Malaysia, supporting both food security and sustainable agriculture.

Malaysia Investment Development Authority (Mida) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said, “The launch of Chemical Industries (Malaya)’s corn-based ethanol facility, exemplifies how circular economy principles can be turned into real economic value, optimising agricultural resources while creating new, high-impact downstream industries such as DDGS for livestock feed. It strengthens Malaysia’s bio-based value chain, reduces import dependencies, and opens new frontiers for sustainable industrial growth.

“At Mida, we welcome such practical investments that support our vision of building a more sustainable manufacturing sector while creating valuable opportunities for our agricultural communities.”

InvestPerak CEO Mohamad Hashim said, “Chemical Industries (Malaya) has had a long-standing presence in Perak and we are pleased to witness their continued confidence in the state through this latest expansion into cornbased ethanol production. This new facility not only reflects CIM’s commitment to innovation and sustainability but also reinforces Perak’s position as a preferred destination for high-value and future-ready investments. The launch of this plant signifies how strategic investments in bio-based industries can contribute meaningfully to the state’s industrial growth, job creation and advancement of a circular economy.”

Hexza Corporation executive director Foong Leon Chiew said the corn-based ethanol plant is an important milestone and strategic investment for CIM as it reinforces their position as the leading producer and supplier of ethanol and DDGS in Malaysia, and their strong commitment to sustainable production. CIM’s new facility is designed with high environmental, social, and governance standards in mind, focusing on minimal waste, responsible sourcing and reinvestment into the local community to ensure long-term sustainable development.

CIM has a rich legacy as Malaysia’s first ethanol producer, having commenced operations in 1962. The company offers a wide range of ethanol products, from 96% to absolute ethanol, meeting the needs of diverse ethanol end-users. Its product portfolio also includes natural vinegar (through wholly owned subsidiary Bio-Acetic Products Sdn Bhd) and now DDGS, further diversifying its market reach.