IOI Palm Wood | High-performance Palm Panels

Why Use Oil Palm Trunks as a Raw Material?

Malaysia has over 5.67 million Hectares of mature oil palm plantations, much of which is approaching or has exceeded its productive lifespan of 20 to 30 years. To maintain productivity yield targets and industry competitiveness, regular sustainable replanting is required. However, replanting on its own is not enough—the industry must also manage the biomass it generates, particularly in the form of oil palm trunks (OPT), which are currently underutilised.

Traditionally, felled oil palm trunks are mulched and left to decompose in the field, contributing to serious agronomic and biosecurity challenges. Decaying trunks act as breeding grounds for pests such as rhinoceros beetles, and host the spread of Ganoderma, a devastating fungal pathogen responsible for basal stem rot, Malaysia’s most critical oil palm disease. This not only increases future plantation vulnerability but also adds cost and complexity to field sanitation and land preparation.

By repurposing OPT into value-added materials for the furniture, door core, panel board, and joinery industries, Malaysia can turn a disposal liability into a strategic asset—creating a circular and sustainable biomass economy that supports both plantation health and industrial innovation.

PalmCore has unique characteristics. Its density ranges from 250–450 kg/m³, with higher density in the outer layers due to its fibrous vascular structure. When cross-sectioned, it displays a distinct combination of woody dark fibres embedded in a soft parenchymatous matrix, giving it a reinforced appearance similar to composite materials. Despite the challenges posed by its high moisture content (up to 150%), advanced processing technologies—such as controlled drying, lamination, and hybrid composite development—are now enabling scalable commercial use.

Moreover, PalmCore material is formaldehyde-free, lightweight, and naturally knot-free, offering both structural and aesthetic value. Its low embodied carbon and renewability make it a climate-friendly alternative to traditional timbers, many of which are derived from endangered or slow-growing species.

The industrial development of PalmCore addresses multiple national priorities:

Accelerating replanting efforts by repurposing the biomass generated.
Improving plantation hygiene and reducing Ganoderma spread.
Creating new green industries and employment through innovation in wood processing.
Reducing pressure on natural forests, supporting Malaysia’s climate and biodiversity goals.

With emerging technologies, optimised machinery, and proven supply chain models now available, the longstanding barriers to commercialising oil palm trunks are rapidly being overcome. It is no longer a question of can we use PalmCore, but rather how fast can we scale its adoption?

About Us

IOI Palm Wood Sdn Bhd (IOI Palm Wood) is a subsidiary of IOI Corporation Berhad, a leading global integrated and sustainable palm oil player that is listed on the Main Market of Bursa Malaysia Securities Berhad.

Established in 2020, we are Malaysia’s first manufacturing plant to commercially and sustainably convert unused oil palm trunks into eco-friendly, sustainable and high-performance palm panels for the furniture and building industries.

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Purpose

To be committed to sustainable manufacturing and innovative products.

Our Vision

To be the leading company to sustainably grow the non-crude palm oil business from oil palm plantations.

Our Mission

To repurpose and transform waste biomass such as oil palm trunks into high-performance engineered materials in a sustainable and responsible way. To ensure that IOI Palm Wood remains at the forefront of the realisation of our vision.

Palm panel is strong, lightweight and environmentally sustainable, but has rough fibrous texture that can be engineered into functional panel products. OnCore^® refers to the palm core of inner fibres that are like reinforced concrete that gives the panel its ultimate strength.

IOI Palm Wood’s OnCore^® products consist of premium-grade thermally modified PalmCore, blockboards and engineered palm panels. These are designed to meet the rising demand for high-quality palm panel solutions that are both high-performance and environmentally sustainable in terms of utilisation of natural resources.