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IOI Corporation Berhad,commonly referred to asIOI,was incorporated on 31 October 1969 asIndustrial Oxygen Incorporated Sdn Bhd.[1]IOI is one ofMalaysia's biggest conglomerates. It ventured intooil palmplantations in 1983,[2]followed byproperty developmentin 1984[3]andrefineriesin 1997.[2]IOI was listed on theKuala Lumpur Stock Exchange(KLSE) and trading as MYX: 1961—now known as Bursa Malaysia—in 1980.[1]
 IOI Group Logo | |
 IOI City Mall | |
| Company type | Public limited company |
|---|---|
| MYX:1961 | |
| ISIN | MYL1961OO001 |
| Industry |
|
| Founded | 1969 |
| Founder | Lee Shin Cheng |
| Headquarters | IOI City Tower 2, IOI Resort City, 62502Putrajaya,Malaysia |
Area served | Southeast Asia |
Key people |
|
| Revenue | |
| Total assets | |
| Total equity | |
Number of employees | 30,000 |
| Subsidiaries |
|
| Website | www |
The group was founded and headed byLee Shin Cheng,the executive chairman, until his death in 2019.[4]Lee Yeow Chor is currently the chief executive.[5]
Its diverse businesses extend from the upstreamplantationin Malaysia and Indonesia, to downstream manufacturing of oleochemicals, specialty oils and fats which are exported to over 70 countries.[6]
Core businesses
editPalm oil plantations
editPalm oilplantations are IOI's biggest income generator. As of 2023, about 63 percent of the conglomerate's profits came from its oil palm plantations. The group controls 176,925 hectares of oil palm plantations inMalaysiaandIndonesia.It has 15 palm oil mills with a total refining capacity of 1.8 million metric tonnes of FFB (fresh fruit bunches) per year from its 98 estates throughout Malaysia and Indonesia.[7]: 7
With oil yield of some six tonnes per hectare per year at its mature estates, IOI is the most efficient plantation company in the world.[8]Malaysia's oil palm average yield for the last 20 years has been stagnant at four tonnes per hectare per year.[9]
Nestléstopped buying palm oil from IOI in 2016.[10]The United Nations Environment Programme says palm oil production is the leading cause of deforestation, which is occurring at a rate of about two per cent per year.[citation needed]Indonesia is also the world's third-largest carbon emitter, largely as a result ofdeforestationand the burning ofpeatlands.[citation needed]
Real estate
editIOI develops real estate and makes property investments in commercial, hospitality and leisure, launching its maiden 930-acre Bandar Puchong Jaya township in 1990.[3]IOI announced a demerger of its property business in 2013,[11]and relisted it asIOI Properties Group Berhadon the Main Market of Bursa Malaysia on 15 January 2014.[12]
Oleochemicals and speciality fats
editIOI is the largest vegetable oil-basedoleochemicalmanufacturer in Asia—held under wholly owned entities IOI Oleochemical Industries Bhd and Pan Century Oleochemical Sdn Bhd with a combined capacity of over 750,000 tonnes per annum.[13]In 2021, IOI was ranked 8th on the Global Top 30 Specialty Oil Companies list.[14]
These plants producefatty acidsandesters,glycerine,soap noodles,fatty alcohols,and metallic stearates. These have various industrial applications in the production of food, pharmaceutical, cosmetics, personal care, home care, industrial detergent-surfactants and lubricant products.
IOI's specialty fats businesses are operated by its 20%-owned associate Bunge Loders Croklaan (formerly known as IOI Loders Croklaan),[15][16]with manufacturing facilities in theNetherlands,North America,and inMalaysia(with a combined production capacity of more than a million tonnes per year). Bunge Loders Croklaan's customer base includes global food giants likeUnilever,Nestle,CadburyandKraft.Speciality fats are used inpastries,confectionery,snack foods,and ready-to-eat meals.
Refineries
editIOI owns refineries in theUSand theNetherlands.[17]IOI extended its activities toIndonesiain 2005.[18]: 100 Its associate company in Indonesia isBumitama Gunajaya Agro.[18]: 100 On 27 September 2016,Greenpeaceblockaded the IOI refinery in the Netherlands in order to force IOI to adopt a more sustainable plantation policy.[19][20]
Critics
editEnvironmental and civil organizations have criticized IOI Group.Greenpeacefirst documented the destruction of orangutan habitat and peatland forest in the 2008 reportBurning up Borneo,[21]followed by a second report in 2015,Under Fire.[22]The company also faced allegations in 2014 from Finnish NGOFinnwatchof serious labour issues on its Malaysian plantations, including confiscating workers' passports, providing contracts in language workers could not understand, restricting freedom of association and paying salaries below the minimum wage.[23]
IOI is a co-founder of theRoundtable on Sustainable Palm Oil(RSPO) and has played an active role in shaping the scheme. The company has several of its estates inMalaysiacertified as complying with RSPO standards. According toFriends of the Earthin March 2010, IOI Corporation failed to live up to its claims of green stewardship. For example:[24]
- Plantationdevelopment took place in forest lands without approval of the Ministry of Forestry in conflict with the Indonesian legislation
- Plantation development took place without approvedenvironmental impact assessments
- Fraudulent statements were made
- Encroachment has taken place in forests and peatlands
- There is a significant increase in fire hot spots
- Corporate claim not to use peatland but to circumvent the issue it does not consider coastal or shallow peat as peatland.
- Corporate claim not to use "burning policy". According to the Fire Information for Management System (FIRMS), there was a significant increase in the number of hot spots after land clearing activity started in 2009.
- IOI's current land development activities may trigger significant land conflicts.
After a complaint filed by AidEnvironment in April 2015, the RSPO certificates of the IOI Group are suspended as of 1 April 2016.[25]Since then, many consumer companies like Unilever, Nestlé andMarshave cancelled contracts with the company.[26]IOI was reinstated in August 2016 by RSPO after it was judged to have fulfilled the group's demands to improve its environmental performance.[27]In September 2016,Greenpeacepublished a damning indictment of IOI entitled,A Deadly Trade-Off; IOI's Palm Oil Supply and its Human and Environmental Costs.[28]
References
edit- ^ab"Corporate Milestones; Corp".IOI Group.Retrieved28 September2016.
- ^ab"Our History - IOI Group".Retrieved18 April2024.
- ^ab"Corporate Milestones; Property".IOI Group.Retrieved28 September2016.
- ^"Malaysian Tycoon Lee Shin Cheng Dies At 79".Forbes.Retrieved18 April2024.
- ^"Board of Directors - IOI Group".Retrieved18 April2024.
- ^"About Us - IOI Group".Retrieved18 April2024.
- ^IOI Group Annual Report 2023(PDF).IOI Group. 2023.Retrieved18 April2024.
- ^"IOI wins on efficiency; FGV on size".The Edge Malaysia.Retrieved20 March2024.
- ^"Yield".bepi.mpob.gov.my.Retrieved19 April2024.
- ^"Nestlé to cut all ties with IOI over palm oil action plan: 'It doesn't go far enough'".foodnavigator.11 May 2016.Retrieved18 April2024.
- ^"IOI Properties relists as a stronger entity".The Edge Malaysia.Retrieved18 April2024.
- ^"IOI Properties' RM1.87 bil relisting was 2014's largest IPO".The Edge Malaysia.Retrieved18 April2024.
- ^IOI to buy Aditya Birla's Pan Century for RM423 million.New Straits Times,8 December 2006
- ^Fu, Rice (26 May 2021)."2021 năm toàn cầu đặc chủng dầu trơn xí nghiệp 30 cường".FoodTalks(in Chinese).Retrieved21 January2022.
- ^"Our Company; About Us".IOI Loders Croklaan.Archived fromthe originalon 18 February 2018.Retrieved27 September2016.
- ^IOI to buy Unilever's oils and fats division.New Straits Times,31 August 2002
- ^Forbes 2012No. 4 Lee Shin Cheng
- ^abVarkkey, Helena (2015).The Haze Problem in Southeast Asia.Abingdon: Routledge.
- ^"Actievoerders Greenpeace opgepakt in Rotterdamse haven".Rijnmond.nl.Retrieved20 March2020.
- ^Neslen, Arthur (27 September 2016)."Greenpeace blockades IOI palm oil refinery in Rotterdam port".The Guardian.Retrieved28 September2016.
- ^"How Unilever palm oil suppliers are burning up Borneo"(PDF).Greenpeace.Archived fromthe original(PDF)on 24 August 2017.
- ^Indonesia's Forests: Under Fire. Indonesia's fire crisis is a test of corporate commitment to forest protection
- ^IOI Group suspected of serious labour rights violations
- ^Too Green to be True, IOI Corporation in Ketapang District, West Kalimantan[permanent dead link]MilieudefensieandFriends of the EarthEurope, March 2010
- ^NOTICE TO RSPO MEMBERS ON THE SUSPENSION OF IOI GROUP'S CERTIFICATION
- ^Unilever palm oil supplier must suspend all plantation expansion to save reputation,The Guardian
- ^Cuff, Madeleine (8 August 2016)."Palm oil giant IOI Group regains RSPO sustainability certification".The Guardian.Retrieved27 September2016.
- ^A Deadly Trade-Off; IOI's Palm Oil Supply and its Human and Environmental Costs(PDF).Amsterdam: Greenpeace International. September 2016.Retrieved27 September2016.
External links
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