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Malaysia gets first corn-based ethanol plant

Chemical Industries (Malaya) Sdn Bhd (CIM), a subsidiary of Hexza Corporation Bhd, has officially launched its state-of-the-art corn-based ethanol facility in Persiaran Tasek, Ipoh, marking a significant milestone in the company’s drive for innovation, growth, and sustainable industrial practices.

The facility represents CIM’s ongoing commitment to quality and sustainability, adopting circular production technologies that align with modern environmental standards.

Founded in 1962, CIM holds the distinction of being Malaysia’s first and largest ethanol producer. Its roots trace back to the early 1960s, when Malaysia was just beginning to industrialise. At the forefront of this vision was Datuk Dr Foong Weng Sum, a medical doctor turned entrepreneur—who saw the industrial potential of ethanol beyond its use in beverages, according to a report by Business Times.

As the founder of Hexza, listed on Bursa Malaysia since 1979, Dr Foong established CIM with the aim of making ethanol a key industrial and energy resource in Malaysia.

“I believed ethanol could serve as a vital industrial input and biofuel. My aim was to help position Malaysia in the global ethanol and chemical industry,” said Dr Foong.

Today, CIM stands as the country’s largest ethanol producer by capacity and the only one using corn as its primary raw material—an approach that reflects its forward-looking and eco-conscious production model. The company previously relied on molasses but has now shifted to a corn-based system with a newly commissioned plant capable of producing up to 10 million litres annually.

Foong Leon Chiew, Hexza’s executive director and Dr Foong’s eldest son, noted that this transition underscores the company’s dedication to circular economy principles and sustainable growth.

The facility sources high-quality corn from Brazil and Argentina, which undergoes natural fermentation and distillation. One of the key by-products, Distiller’s Dried Grains with Solubles (DDGS), is repurposed into premium livestock feed—helping reduce dependency on imported feed, and contributing to food security and sustainable agriculture in Malaysia. CIM is currently the country’s sole producer and supplier of DDGS.

“This isn’t just about increasing production; it reflects a broader responsibility,” said Foong, an Oxford-trained engineer with an MBA from the Wharton School and 17 years’ experience in investment banking in Hong Kong.

CIM manufactures a wide range of ethanol products—from 96% industrial-grade ethanol to absolute ethanol—serving diverse sectors such as pharmaceuticals, personal care, advanced manufacturing, food, and beverages.

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