IOI Group
{{Short description|Malaysian conglomerate}}
{{Cleanup reorganize|date=May 2016}}
{{more citations needed|date=May 2016}}
{{EngvarB|date=February 2015}}
{{Use dmy dates|date=February 2015}}
{{Infobox company
| name = IOI Corporation Berhad
| logo = IOI Group logo.svg
| logo_caption = IOI Group Logo
| image = IOI City Mall - Mapillary (AzW5r1pQbVl0GX5iNnZ275).jpg
| image_caption = IOI City Mall
| type = Public limited company
| traded_as = {{myx|1961}}
| ISIN = {{ISIN|sl=n|pl=y|MYL1961OO001}}
| foundation = 1969
| founder = Lee Shin Cheng
| location = IOI City Tower 2, IOI Resort City, 62502 Putrajaya, Malaysia
| area_served = Southeast Asia
| key_people = {{Unbulleted list|Lee Yeow Chor(Chief Executive Officer)|Tan Sri Peter Chin Fah Kui(Chairman)}}
| industry = {{Unbulleted list|palm oil |chemical manufacturing | property development| investment| resort management}}
| products =
| services =
| revenue = {{Unbulleted list|{{decrease}} RM 11.58 billion(2023)|RM 15.58 billion(2022)}}
| operating_income = {{Unbulleted list|{{decrease}} RM 1.82 billion(2023)|RM 2.5 billion(2022)}}
| net_income = {{Unbulleted list|{{decrease}} RM 1.13 billion(2023)|RM 1.77 billion(2022)}}
| assets = {{Unbulleted list|{{decrease}} RM 17.58 billion(2023)|RM 19.17 billion(2022)}}
| equity = {{Unbulleted list|{{increase}} RM 11.33 billion(2023)|RM 10.94 billion(2022)}}
| num_employees = 30,000
| subsid = {{Unbulleted list|IOI Plantation|IOI Management|IOI Commodity Trading|IOI Palm Biotech|IOI Investment|IOI Ventures|IOI Biofuel}}
| homepage = {{URL|https://www.ioigroup.com/}}
}}
IOI Corporation Berhad, commonly referred to as IOI, was incorporated on 31 October 1969 as Industrial Oxygen Incorporated Sdn Bhd.{{cite web|title=Corporate Milestones; Corp|url=http://www.ioigroup.com/Content/CI/Corp_Milestones|website=IOI Group|access-date=28 September 2016}} IOI is one of Malaysia's biggest conglomerates. It ventured into oil palm plantations in 1983,{{Cite web |last= |first= |title=Our History - IOI Group |url=https://www.ioigroup.com/about-us/our-history |access-date=2024-04-18 |website= |language=en}} followed by property development in 1984{{cite web|title=Corporate Milestones; Property|url=http://www.ioigroup.com/Content/CI/Corp_Milestones|website=IOI Group|access-date=28 September 2016}} and refineries in 1997. IOI was listed on the Kuala Lumpur Stock Exchange (KLSE) and trading as MYX: 1961—now known as Bursa Malaysia—in 1980.
The group was founded and headed by Lee Shin Cheng, the executive chairman, until his death in 2019.{{Cite web |last= |first= |title=Malaysian Tycoon Lee Shin Cheng Dies At 79 |url=https://www.forbes.com/sites/anismuslimin/2019/06/03/malaysian-tycoon-lee-shin-cheng-dies-at-79/ |access-date=2024-04-18 |website=Forbes |language=en}} Lee Yeow Chor is currently the chief executive.{{Cite web |last= |first= |title=Board of Directors - IOI Group |url=https://www.ioigroup.com/about-us/board-of-directors |access-date=2024-04-18 |website= |language=en}}
Its diverse businesses extend from the upstream plantation in Malaysia and Indonesia, to downstream manufacturing of oleochemicals, specialty oils and fats which are exported to over 70 countries.{{Cite web |last= |first= |title=About Us - IOI Group |url=https://www.ioigroup.com/about-us |access-date=2024-04-18 |website= |language=en}}
Core businesses
=Palm oil plantations=
Palm oil plantations 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 in Malaysia and Indonesia. 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.{{Cite book |url=https://www.ioigroup.com/Files/investor-relations/pdf/IOI_AR2023.pdf |title=IOI Group Annual Report 2023 |date=2023 |publisher=IOI Group |access-date=18 April 2024}}{{RP|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.{{Cite web |title=IOI wins on efficiency; FGV on size |url=https://theedgemalaysia.com/article/ioi-wins-efficiency-fgv-size |access-date=2024-03-20 |website=The Edge Malaysia}} Malaysia's oil palm average yield for the last 20 years has been stagnant at four tonnes per hectare per year.{{Cite web |title=Yield |url=https://bepi.mpob.gov.my/index.php/yield/ |access-date=2024-04-19 |website=bepi.mpob.gov.my}}
Nestlé stopped buying palm oil from IOI in 2016.{{Cite web |last= |date=2016-05-11 |title=Nestlé to cut all ties with IOI over palm oil action plan: 'It doesn't go far enough' |url=https://www.foodnavigator.com/Article/2016/05/12/Nestle-to-cut-all-ties-with-IOI-over-palm-oil-action-plan-It-doesn-t-go-far-enough |access-date=2024-04-18 |website=foodnavigator.com |language=en-GB}} 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|date=September 2016}} Indonesia is also the world's third-largest carbon emitter, largely as a result of deforestation and the burning of peatlands.{{Citation needed|date=September 2016}}
=Real estate=
IOI develops real estate and makes property investments in commercial, hospitality and leisure, launching its maiden 930-acre Bandar Puchong Jaya township in 1990. IOI announced a demerger of its property business in 2013,{{Cite web |title=IOI Properties relists as a stronger entity |url=https://theedgemalaysia.com/article/ioi-properties-relists-stronger-entity |access-date=2024-04-18 |website=The Edge Malaysia}} and relisted it as IOI Properties Group Berhad on the Main Market of Bursa Malaysia on 15 January 2014.{{Cite web |title=IOI Properties' RM1.87 bil relisting was 2014's largest IPO |url=https://theedgemalaysia.com/article/ioi-properties%E2%80%99-rm187-bil-relisting-was-2014%E2%80%99s-largest-ipo |access-date=2024-04-18 |website=The Edge Malaysia}}
=Oleochemicals and speciality fats=
IOI is the largest vegetable oil-based oleochemical manufacturer 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.IOI to buy Aditya Birla's Pan Century for RM423 million. New Straits Times, 8 December 2006 In 2021, IOI was ranked 8th on the Global Top 30 Specialty Oil Companies list.{{Cite web|last=Fu|first=Rice|date=2021-05-26|title=2021年全球特种油脂企业30强|url=https://www.foodtalks.cn/news/foodnews/top_100/6037|access-date=2022-01-21|website=FoodTalks|language=zh}}
These plants produce fatty acids and esters, 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),{{cite web|title=Our Company; About Us|url=http://asiapacific.ioiloders.com/our-company|website=IOI Loders Croklaan|access-date=27 September 2016|archive-date=18 February 2018|archive-url=https://web.archive.org/web/20180218144650/http://asiapacific.ioiloders.com/our-company|url-status=usurped}}IOI to buy Unilever's oils and fats division. New Straits Times, 31 August 2002 with manufacturing facilities in the Netherlands, North America, and in Malaysia (with a combined production capacity of more than a million tonnes per year). Bunge Loders Croklaan's customer base includes global food giants like Unilever, Nestle, Cadbury and Kraft. Speciality fats are used in pastries, confectionery, snack foods, and ready-to-eat meals.
=Refineries=
IOI owns refineries in the US and the Netherlands.[https://www.forbes.com/lists/2012/84/malaysia-billionaires-12_Lee-Shin-Cheng_HZCA.html Forbes 2012] No. 4 Lee Shin Cheng IOI extended its activities to Indonesia in 2005.{{cite book|last1=Varkkey|first1=Helena|title=The Haze Problem in Southeast Asia|date=2015|publisher=Routledge|location=Abingdon}}{{RP|100}} Its associate company in Indonesia is Bumitama Gunajaya Agro.{{RP|100}} On 27 September 2016, Greenpeace blockaded the IOI refinery in the Netherlands in order to force IOI to adopt a more sustainable plantation policy.{{cite news |title=Actievoerders Greenpeace opgepakt in Rotterdamse haven |url=http://www.rijnmond.nl/nieuws/146790/Greenpeace-demonstreert-tegen-palmolieproductie-in-R-damse-haven |access-date=20 March 2020 |work=Rijnmond.nl}}{{cite news|last1=Neslen|first1=Arthur|title=Greenpeace blockades IOI palm oil refinery in Rotterdam port|url=https://www.theguardian.com/environment/2016/sep/27/greenpeace-blockades-ioi-palm-oil-refinery-rotterdam-port|access-date=28 September 2016|work=The Guardian|date=27 September 2016}}
Critics
{{See also|Oil palm}}
Environmental and civil organizations have criticized IOI Group. Greenpeace first documented the destruction of orangutan habitat and peatland forest in the 2008 report Burning up Borneo,{{cite web |title=How Unilever palm oil suppliers are burning up Borneo |url=https://www.greenpeace.org/international/PageFiles/24549/how-unilever-palm-oil-supplier.pdf |publisher=Greenpeace |url-status=dead |archive-url=https://web.archive.org/web/20170824175029/https://www.greenpeace.org/international/PageFiles/24549/how-unilever-palm-oil-supplier.pdf |archive-date=24 August 2017}} followed by a second report in 2015, Under Fire.[http://www.greenpeace.org/international/en/publications/Campaign-reports/Forests-Reports/Under-Fire/ Indonesia's Forests: Under Fire. Indonesia's fire crisis is a test of corporate commitment to forest protection] The company also faced allegations in 2014 from Finnish NGO Finnwatch of 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.[http://www.finnwatch.org/en/news/213-ioi-group-suspected-of-serious-labour-rights-violations IOI Group suspected of serious labour rights violations]
IOI is a co-founder of the Roundtable on Sustainable Palm Oil (RSPO) and has played an active role in shaping the scheme. The company has several of its estates in Malaysia certified as complying with RSPO standards. According to Friends of the Earth in March 2010, IOI Corporation failed to live up to its claims of green stewardship. For example:[http://www.milieudefensie.nl/publicaties/downloads/Too_Green_to_be_True.pdf Too Green to be True, IOI Corporation in Ketapang District, West Kalimantan]{{Dead link|date=January 2020 |bot=InternetArchiveBot |fix-attempted=yes }} Milieudefensie and Friends of the Earth Europe, March 2010
:*Plantation development took place in forest lands without approval of the Ministry of Forestry in conflict with the Indonesian legislation
:* Plantation development took place without approved environmental 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.[http://www.rspo.org/news-and-events/announcements/notice-to-rspo-members-on-the-suspension-of-ioi-groups-certification NOTICE TO RSPO MEMBERS ON THE SUSPENSION OF IOI GROUP'S CERTIFICATION] Since then, many consumer companies like Unilever, Nestlé and Mars have cancelled contracts with the company.[https://www.theguardian.com/sustainable-business/2016/apr/09/ioi-malaysian-palm-oil-company-unilever-mars-kellogg-rspo-deforestation Unilever palm oil supplier must suspend all plantation expansion to save reputation], The Guardian IOI was reinstated in August 2016 by RSPO after it was judged to have fulfilled the group's demands to improve its environmental performance.{{cite news|last1=Cuff|first1=Madeleine|title=Palm oil giant IOI Group regains RSPO sustainability certification|url=https://www.theguardian.com/environment/2016/aug/08/palm-oil-giant-ioi-group-regains-rspo-sustainability-certification|access-date=27 September 2016|work=The Guardian|date=2016-08-08}} In September 2016, Greenpeace published a damning indictment of IOI entitled, A Deadly Trade-Off; IOI's Palm Oil Supply and its Human and Environmental Costs.{{cite book|title=A Deadly Trade-Off; IOI's Palm Oil Supply and its Human and Environmental Costs|date=September 2016|publisher=Greenpeace International|location=Amsterdam|url=http://www.greenpeace.nl/Global/nederland/report/2016/bossen/Deadly-Trade-off-IOI-Report.pdf|access-date=27 September 2016}}
References
{{Reflist|30em}}
External links
{{commons category}}
- {{official website}}
{{Palm oil}}
{{FTSE Bursa Malaysia KLCI constituents}}
Category:1969 establishments in Malaysia
Category:Conglomerate companies of Malaysia
Category:Agriculture companies of Malaysia
Category:Palm oil companies of Malaysia
Category:Palm oil companies of Indonesia
Category:Real estate in Malaysia
Category:Conglomerate companies established in 1969
Category:Real estate companies established in 1969
Category:Agriculture companies established in 1969
Category:Malaysian companies established in 1969