PT Resources invests RM17mil in China coconut processing plant, expanding food-processing capabilities.

PT Resources has invested RM17mil in a coconut processing facility in China's Fujian province. The facility will produce frozen coconut water, frozen coconut milk, desiccated coconut, and other derivatives. The company is optimistic about the growing demand for coconut-based products in China, driven by its large population and rising interest in plant-based diets. The facility will initially supply B2B customers within Fujian province and nearby regions, with plans to explore collaborations with Chinese distributors and manufacturers.

PT Resources Holdings Bhd (PTRB) has invested RM17 million in establishing a coconut processing facility in Fujian province, China. The facility, located in the China-Indonesia Food Industrial Park in Fuqing City, is set to commence commercial operations by mid-June 2025. This investment marks PTRB's expansion into the coconut-based products market, which is driven by the growing demand for such products in China.

The new facility will produce a range of value-added products, including frozen coconut water, frozen coconut milk, desiccated coconut, and other derivatives. PTRB's managing director, Heng Chang Hooi, expressed optimism about the growing demand for coconut-based products in China, citing the country's large population and increasing interest in plant-based diets [1].

The facility will initially focus on supplying frozen and dried coconut products to business-to-business (B2B) customers such as food and beverage (F&B) manufacturers within Fujian province and nearby regions. Fujian is strategically positioned as one of China's key import and processing hubs for mature coconuts, serving a wide network of F&B manufacturers within a 700-kilometre radius of the facility [2].

PTRB is actively exploring B2B collaborations with Chinese distributors and manufacturers, including opportunities for private-label production and OEM services. The company aims to leverage Fujian's export infrastructure to access ASEAN markets and will participate in trade exhibitions such as the China Food and Drinks Fair [3].

On the supply side, PTRB is securing consistent supplies of mature coconuts from Indonesia, one of the world's leading coconut producers. This arrangement will ensure a steady supply of coconuts to meet the anticipated demand [4].

According to Grand View Research, China accounted for 10.2% of the global coconut product market in 2022, generating a revenue of USD 2.1 billion. The China market is projected to grow to USD 3.6 billion by 2030, making it a key player in the Asia-Pacific region [5].

The investment in the coconut processing facility is funded entirely through internally generated funds, indicating PTRB's strong financial position. This development is expected to enhance the company's logistical reach and diversify its revenue streams.

References:
[1] https://thesun.my/business-news/pt-resources-enhances-capabilities-with-coconut-processing-facility-in-fujian-china-KF14225483
[2] https://www.thestar.com.my/business/business-news/2025/06/10/pt-resources-invests-rm17mil-in-china-coconut-processing-plant
[3] https://www.marketscreener.com/quote/stock/PT-RESOURCES-HOLDINGS-144770826/news/PT-Resources-Holdings-Berhad-Expands-Processing-Capabilities-with-New-Coconut-Facility-in-China-Unde-50188541/
[4] https://www.klsescreener.com/v2/stocks/view/0260
[5] Grand View Research