MSM Malaysia Holdings Bhd’s subsidiary, MSM Prai Bhd (MSM Prai), has secured about RM290 million worth of refined sugar supply contract with The Coca-Cola Company (Coca-Cola) for both domestic and international production.
In a statement on January 7, the refined sugar producer said the contract solidified the company’s place as Malaysia’s leading and preferred refined sugar producer in the Asia Pacific.
Group chief executive officer Syed Feizal Syed Mohammad said the opportunity to be part of the Coca-Cola supply chain, the world’s most valuable soft drink brand, is part of MSM’s export blueprint as the top eight global integrated sugar refiner.
This was in addition to the company’s existing secured term sales supply contracts with various major local fast-moving consumer goods (FMCG) industry players locally and in the region.
“This accomplishment added a boost to MSM group having achieved a turnaround in 2021 and accelerating MSM’s expansion to wider markets across the region,” he said.
Syed Feizal said MSM would provide sustainable raw sugar supply for Coca-Cola domestic market as part of the company’s commitment towards environmental, social and governance framework.
MSM said the company had been serving Coca-Cola domestically for more than ten years.
The two-year contract with Coca-Cola Bottlers (Malaysia) Sdn Bhd allows MSM to supply refined sugar between 2022 and 2023.
The contract also applied for the export that commenced in December 2021, where the refined sugar supply would be shipped to a different international destination where Coca-Cola has a strong presence.
MSM Prai operates the Prai sugar refinery in Penang.
Located on the northwest coast of Peninsular Malaysia, the facility is the country’s largest sugar refinery, with an annual production capacity of 1.05 million tonnes of refined sugar.
Meanwhile, MSM Sugar Refinery (Johor) Sdn Bhd, is strategically located at Tanjung Langsat Port, Johor, with an annual production capacity of one million tonnes of refined sugar, is set to ramp up its production in 2022.
MSM group observes strict quality control and standard operating procedures, and its refineries are regularly audited to maintain the highest standard of food safety and quality.
MSM is capable of producing sugar according to Coca-Cola’s specification which also includes JAKIM Halal Certification Standards of Malaysia, MS1500:2009, Food Safety System Certification (FSSC 22000 – Manufacturing), Hazard Analysis and Critical Control Point (HACCP) Certifications and Good Manufacturing Practices, amongst others that are relevant to the industry.
MSM group offers a variety of high-quality sugar products marketed and sold in various packaging and grades to fulfil the domestic and export demand.
The capability of MSM to produce the International Commission for Uniform Methods of Sugar Analysis (ICUMSA) 25 specification of refined sugar of global premium quality has established a strong preference for Gula Prai in the FMCG production industry.