DXN Holdings Bhd (DXN), a Malaysian health and wellness company, will establish a coffee processing facility in Ibia, Minas Gerais, Brazil.
The company’s investment will also include the transfer of Malaysian technology, which involves the production of civet-style fermented coffee and tea derived from coffee leaves.
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In order to facilitate market entry, DXN set up its inaugural registered office in São Paulo in April 2024, which focuses on regulatory issues, distributor training, and foundational operations.
Founder and executive chairman Datuk Lim Siow Jin said, “Brazil is the next logical step in Latin America. That region is now leading the group’s growth, and we see the economies of scale, demographic profile and health-lifestyle awareness in Brazil as complementary to our strong position already in Peru and Bolivia.”
During his remarks at the press conference that followed the Malaysia-Brazil Business Summit in Kuala Lumpur yesterday (October 27), Lim said DXN Holdings plans to introduce the civet-style coffee and technology as “a new concept in the Brazilian coffee industry”, given that “Malaysia also has its own expertise in developing value-added coffee products.”
He also revealed that the local government is offering attractive incentives including 10ha of free land for the project, as well as simpler investment procedures and lower land costs compared to Malaysia.
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By GlobalData“They offer many supports to foreign investors. Affordable land, large areas and simple licensing processes. This is a big advantage for Malaysian investors,” Lim added. He expects a memorandum of understanding between the company and the local government to be signed in mid-November.
Ibia Mayor Gillianno Mamão expressed his support for DXN’s new coffee processing facility in his town, as well as a commitment to facilitating opportunities for Malaysian companies.
DXN presently maintains a presence in Mexico, Peru, and Bolivia, with over 10 million active members worldwide, with 60% of them located in Latin America.
