PASIR GUDANG: MSM Malaysia Holdings (MSM) is looking to reduce its sugar processing costs by about one-third to half once its largest integrated sugar refinery at Tanjung Langsat in Johor is fully commissioned by late 2017.

MSM president and chief executive officer Datuk Sheikh Awab Sheikh Abod said that the refinery which involves an investment of $259 million (RM1.04 billion) would position it as one of the leading refined sugar producers in the region with a target of achieving RM500 million in profits after tax by 2018.

"It will reduce the group’s sugar processing costs by approximately 30 per cent to 50 per cent," he said during the ground-breaking ceremony of the refinery at the Tanjung Langsat industrial complex.

Sheikh Awab said that the company is also projecting to increase market share to 85 per cent by 2018 in line with its target to be recognised as the top 10 global sugar players by 2020.

The refinery’s first phase has been scheduled for completion by late next year with a target production capacity of one million tonnes of refined sugar yearly, effectively enabling MSM to increase annual production capacity to 2.25 million tonnes.

Sheikh Awab said the capacity will boost its supply volume in enabling the company to meet the 100 per cent domestic demand and the excess would be for the export market.

Erected on some 20.49 ha of land, he said that the mega facility would open up some 500 job opportunities for locals in the next five years, stimulating the local economy and become Johor’s next landmark.

Instead of the popular RM80 million brand ‘Gula Prai’, the production at the MSM Sugar Refinery (Johor) (MSM Johor) will be branded as ‘Gula Johor’, taking after the name of the state.