KUALA LUMPUR: DXN Holdings Bhd
has announced the groundbreaking of its new manufacturing facility in Ibia, Brazil, as it expands its manufacturing footprint in Latin America.
In a statement, the group said the Brazil facility, which will source raw materials from DXN’s own agricultural operations and local suppliers - including Arabica coffee beans from its 385 acres plantation in Ibiá - will strengthen DXN’s vertically integrated model by linking upstream cultivation with manufacturing and improving supply reliability and raw material control.
The Brazil facility forms part of its ongoing RM500mil capital expenditure programme, through which the company is expanding manufacturing capacity across multiple regions to support its long-term growth.
It is being developed on a 100,745sqm site provided by the Municipality of Ibia under a conditional land donation arrangement.
Under the Reciprocal Commitment Agreement between DXN Brasil and the Municipality of Ibiá, DXN has committed to invest at least BRL100mil over five years in establishing and developing its manufacturing operations in Ibiá.
The completion of the project is targeted for September 2029, with production expected to commence by end-2029.
According to DXN executive director and group CEO Prajith Pavithran, Latin America has become the core market for DXN and remains central to its long-term growth strategy.
For the financial year ended 28 February 2026, the region contributed 61.2% of the company’s revenue, or RM1.2bil. This was supported by an established base of approximately 4.8 million captive consumers, as at July 31, 2026.
"This investment reflects our confidence in Latin America and our commitment to building the capabilities needed to support the region’s long-term growth. Once operational, the Brazil Facility will provide greater flexibility to develop and introduce products tailored to Brazilian and regional consumer preferences," he said.
DXN currently operates two manufacturing facilities in Mexico, while the Company held the groundbreaking for its Peru Facility on 15 September 2025, followed by its Bolivia Facility on 16 April 2026.
