Why Use Oil Palm Trunks?

Malaysia has 10 million acres of oil palm trees that require replanting every 20 to 30 years. The palm trees that are chopped provide abundant oil palm trunks, which are an alternative source of raw material for the furniture, building and construction industries, due to the need to prevent deforestation.

Oil palm trunks are rarely utilised because palm trees that are chopped are usually left to decay in the oil palm plantations. In addition, the density of oil palm trunks varies from 150kg/m³ to 700kg/m³, with the outer trunk being the densest and the inner truck being the least dense. Nevertheless, the hard, long and woody dark fibres have the appearance of reinforced concrete when viewed in a cross-section. These fibres are embedded in a very soft cell matrix, and give the wood its strength. The lack of knots and growth-related defects provide a uniform quality while the unique wood grain structure enhances its aesthetic value.

The moisture content is very high and ranges from 150% to 600% based on the dry mass. Due to this high moisture content, and the sugar and starch in the wood, fungal decay starts very quickly. Preventing decay requires special logistics in the supply chain, from logging to processing oil palms, and involves a very complex drying process.

Until now, investors and companies that are interested in producing and utilising palm wood from oil palm trunks have not found any viable or sustainable solution to use this untapped potential. Additionally, machines and tools need to be adapted or optimised for processing palm wood effectively. All these challenges have held back the industrial development of palm wood.

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 wood panels for the furniture and building industries.


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

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

Contact Us

Head Office
IOI Palm Wood Sdn Bhd
Level 29, IOI City Tower 2, Lebuh IRC,
IOI Resort City, 62502 Putrajaya, Malaysia.

+607 927 0102
+6010 260 1498
(WhatsApp Messenger only)

IOI Palm Wood Sdn Bhd
PTD 13060 & 13061, Jalan Kolej TAR, Mukim Pogoh,
85000 Segamat, Johor, Malaysia.


Please feel free to make an enquiry about our products and services. We will reply to you as soon as possible.