SD Guthrie and AME Elite to develop Green Industrial Park in Johor-Singapore Economic Zone

• MOU signed to develop 641 acres in Kulai, Johor
• On-site solar park to serve as dedicated green energy source

Petaling Jaya, Malaysia, 4 November 2024 - SD Guthrie Berhad (SD Guthrie), formerly known as Sime Darby Plantation Berhad, and AME Elite Consortium Berhad (AME Elite), through its wholly owned subsidiary, AME Industrial Park Sdn. Bhd. (AME Industrial Park) have announced plans to jointly develop a green industrial park within the Johor-Singapore Special Economic Zone (JS-SEZ).

It will be developed on 641 acres of prime land in SD Guthrie’s Kulai estate in Johor, and will include a dedicated solar park to provide the industrial park with green energy.

Positioned as a hub for high-value industries such as logistics, advanced manufacturing, and clean technologies, the new industrial park will feature a range of ready-built and built-to-suit factories, including semi-detached, detached, and superlot options, tailored to bespoke business needs.

SD Guthrie and AME Industrial Park signed the Memorandum of Understanding (MOU) today, outlining the best approaches to maximise the potential of the project. The MOU partners have also agreed that the development will adhere to stringent environmental standards and sustainable practices. Both parties aim to formalise the collaboration further, with a joint venture agreement, within the next five months.

AME Elite is an integrated industrial property development, construction, engineering services and property management services provider, specialising in the development of industrial parks and the construction of large scale manufacturing plants. It is renowned for its successful “i-Park” branded managed industrial parks in Johor, including i-Park @ Senai Airport City and i-Park @ Indahpura.

SD Guthrie had announced in May 2024 that it is expanding into green industrial parks and renewable energy, to unlock the value of its vast landbank in Malaysia, and to create sustainable revenue streams. Through this MOU with AME Industrial Park, SD Guthrie intends to unlock the value of its strategically located landbank within the JS-SEZ.

SD Guthrie’s Group Managing Director, Datuk Mohamad Helmy Othman Basha said the company is delighted to participate in Johor’s vibrant economic development. AME Elite has successfully completed four industrial development projects in Johor and is currently developing four others in Johor and Penang, spanning a total land area of approximately 800 acres, with a combined estimated Gross Development Value (GDV) of RM6 billion.

“The new industrial park, which will be located on part of our land in Kulai, represents a new step forward that will foster greater economic growth within the JS-SEZ,” Mohamad Helmy said. “For decades, we have operated oil palm estates, mills and a refinery in the state of Johor, and we have always been committed to driving sustainable development that benefits the local community."

He noted that creating synergy with existing and more experienced players in the development of industrial parks is an important strategic step for SD Guthrie as it ventures into new business verticals. “This memorandum with AME Elite signals our intent to create more revenue streams from our strategically located land assets, and more value for our shareholders,” he said.

The new industrial hub in Kulai will be located in a prime area with significant logistical advantages for prospective investors and business communities. It is situated approximately 20 kilometers from Johor Bahru Senai International Airport, and is well-connected via the North-South Highway, offering proximity to key ports such as Tanjung Pelepas and Pasir Gudang. Surrounding developments such as the i-Park @ Senai Airport City and i-Park @ Indahpura are enjoying high take-up rates, which augurs well for development in the area.

“This collaboration with SD Guthrie is a significant opportunity to advance sustainable industrial development in Malaysia, further raising our profile as a leading sustainable industrial park developer in attracting foreign investments and supporting various domestic industries,” said Dylan Tan Teck Eng, Executive Director and Group CEO of AME Elite.

“By combining AME Elite’s expertise in creating award-winning industrial parks with SD Guthrie’s strategically-situated land, we will attract high-value industries and capitalise on the strong potential of the JS-SEZ.

This project is certainly part of our strategy of leveling up our standards in industrial park development, not only adhering to high environmental standards, but also leading the way in sustainability,” he added.

SD Guthrie is in active discussions with several state agencies and potential business partners to develop selected land parcels located strategically throughout Malaysia.

In August this year, SD Guthrie announced its potential collaboration with TH Properties Sdn. Bhd. to develop Malaysia’s first HALMAS-certified managed industrial park.