SumiSaujana Signs Agreement with MPOB to Produce Palm Oil Polyols

Malaysian specialty chemicals company SumiSaujana Group Bhd has signed a licensing and commercialisation agreement with the Malaysian Palm Oil Board (MPOB) to produce and market palm-based polyols and other intermediates for global industrial markets.

The deal allows SumiSaujana’s subsidiary, SumiSaujana TCM Chemicals Sdn Bhd (SSTCM), to use MPOB-developed technologies to manufacture palm-based polyols and bio-based polyester polyols. These products are renewable raw materials used in making polyurethane, as well as in adhesives, paints, coatings, rubber, and textiles.

Under the agreement, SSTCM will pay a one-off licensing fee of RM800,000 in stages over five years. On top of that, it will also pay a 2% royalty on gross sales revenue from the products made using the technology. The licence includes limited exclusivity for five years, with an option to extend based on the terms agreed.

SumiSaujana’s executive director and chief executive officer Norazlam Norbi said, “This agreement with the MPOB represents a meaningful step in our long-term growth strategy. We see tremendous value in integrating sustainable palm-based innovations into our product portfolio, enabling us to serve new markets while remaining aligned with the global shift towards environmentally responsible manufacturing.”

The licensed technologies, developed by MPOB through internal research, offer eco-friendly alternatives to petroleum-based chemicals commonly used in making polyurethane. These are used across many sectors including automotive, construction, consumer goods, and more.

The partnership also supports the MPOB’s goal of promoting downstream applications of palm oil, as part of the Public-Private Partnership Master Plan (PIKAS) 2030. This national plan aims to position Malaysia as a global leader in sustainable and bio-based technologies.

MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said, “This collaboration signifies more than just technology transfer. It reinforces the role of public-private synergy in sustainable industrial development. 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.”

SumiSaujana is also preparing to list on Bursa Malaysia’s ACE Market. Its initial public offering (IPO), aimed at raising RM74.4 million, has been oversubscribed by 1.85 times by retail investors. The listing, which offers a 27.71% stake in the company, is set for Wednesday (9 April) at 24 sen per share, valuing the group at RM346.5 million.

Source: The Edge Malaysia