DXN invests RM77mil to expand Brazil manufacturing hub

KUALA LUMPUR: DXN Holdings Bhd is bolstering its manufacturing operations in Latin America with a new facility in Brazil, set to invest around RM77 million over five years. This expansion, to be based in Ibiá, Minas Gerais, aims to become the company's largest manufacturing presence in the region, enhancing its capacity to serve Brazil and other Latin American markets.

Latin America stands as DXN's top revenue contributor, accounting for 61.2% of its total revenue (approximately RM1.2 billion) for the financial year ending February 28, 2026. The region is home to approximately 4.8 million captive consumers as of July 31, highlighting its significance to the company's long-term growth strategy.

The new facility is being constructed on a 100,745-square-meter site donated conditionally by Ibiá Municipality. The construction is projected to be completed by September 2029, with production slated to commence by the end of the year. DXN's Executive Director and Group CEO, Prajith Pavithran, emphasized that this investment would enable the company to manufacture closer to its customers, thereby improving product availability, shortening supply routes, and allowing for quicker response to demand fluctuations.

He added that this investment reflects DXN's confidence in Latin America and its commitment to building the necessary capabilities to support the region's long-term growth.

Once operational, the Brazil facility will offer greater flexibility in developing and introducing products tailored to Brazilian and regional consumer preferences. Moreover, it will strengthen DXN's vertically integrated supply chain by sourcing raw materials from the company's own agricultural operations and local suppliers, including Arabica coffee beans from a 155.8-hectare plantation in Ibiá. This will enable the company to link its upstream cultivation activities with downstream manufacturing.

The Brazil investment is part of DXN's broader RM500 million capital expenditure program aimed at expanding manufacturing capacity in multiple regions. Currently, DXN operates two manufacturing facilities in Mexico and is also in the process of developing facilities in Peru and Bolivia. The groundbreaking ceremony for the Peru facility took place in September 2025, followed by the Bolivia facility in April of this year.

With the Brazil facility, DXN will establish a more localized manufacturing network across four key Latin American markets, potentially reducing supply chain lead times and providing greater flexibility to tailor products to regional demand.

This expansion follows DXN's memorandum of understanding with Apex Brasil, which aims to support the company's broader investment plans and deepen its operating presence in Brazil. Amirul Azman Ahmad, Malaysia's External Trade Development Corporation trade commissioner to Brazil, noted that the investment underscores the growing internationalization of Malaysian companies, moving away from mere exports and distribution towards local manufacturing and integration into regional supply chains.