PETALING JAYA: DXN Holdings Bhd, a global wellness company and manufacturer of nutraceutical products, broke ground on Malaysia’s largest nutraceutical manufacturing facility in Bukit Kayu Hitam, Kedah (BKH Facility), a RM140 million investment that cements Malaysia’s position as the anchor of DXN’s global manufacturing network and strengthens the group’s long-term growth platform.
Phase 1 of the development will feature about 300,000 square feet of built-up space across a 26.6-acre site leased from Perbadanan Kemajuan Negeri Kedah. The integrated manufacturing hub will house seven production blocks, 10 warehouse facilities and a dedicated research and development centre, making it DXN’s largest facility worldwide and one of Malaysia’s largest nutraceutical manufacturing complexes.
Production is targeted to begin in March 2028 with 118 stock keeping units (SKU) across coffee, food and beverage and juice categories, while future phases will support expansion into higher-value segments such as cosmetics, personal care and pharmaceuticals.
The BKH Facility is designed to provide the capacity, flexibility and operational resilience required to support DXN’s next phase of global growth while ensuring that manufacturing capability remains ahead of future demand.
Welcoming the investment, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said Malaysia’s largest nutraceutical factory will be a source of great pride for the state.
“This RM140 million commitment creates quality employment for our people, strengthens Kedah’s position as a premier industrial destination within the Northern Corridor, and demonstrates the confidence that world-class manufacturers continue to place in Kedah as a foundation for global operations,” he added.
DXN executive chairman and founder Datuk Lim Siow Jin said, “DXN’s revenue has grown at a compounded annual growth rate of 15.4% over the past three years, and FY2025 delivered all-time highs in revenue, net profit and Ebitda. That growth has outpaced our existing production capacity.”
He added, “Bukit Kayu Hitam is our answer, with seven production blocks and a dedicated R&D centre, built to support the next decade of growth. More than a factory, it is a purpose-built manufacturing, logistics and innovation hub that will enable DXN to scale more efficiently, operate more effectively and serve our global markets with greater flexibility and resilience.
“Together with our existing facilities in Kedah, it will further reinforce Malaysia’s role as the heart of our global production ecosystem and strengthen our ability to support customers worldwide.”
Lim said the global health and wellness market is growing at a pace that most investors have yet to fully appreciate.
“The ready-to-eat and functional food segment alone is projected to reach RM1.6 trillion by 2034, growing at 7.7% annually. Wellness spending per capita in Asia stands at just RM1,860 per year compared to RM23,815 in North America and RM7,410 in Europe, that convergence gap represents decades of addressable growth.
DXN currently generates RM1.9 billion in annual revenue from a global market measured in the hundreds of billions. Bukit Kayu Hitam is how we ensure our production capacity is never the constraint on capturing that opportunity.”
Bukit Kayu Hitam is the flagship of DXN’s Global Manufacturing Strategy, which targets 21 factories across four continents by 2028. The facility anchors a three-pillar Malaysian manufacturing ecosystem alongside the existing Jitra complex and the Gua Musang facility under development in Kelantan.
Together, the integrated cluster will supply the majority of DXN’s global SKU portfolio to its consumer community of approximately 22 million registered consumers across more than 180 countries, while new regional facilities in Peru, Bolivia, Morocco, Saudi Arabia and Brazil serve their respective local markets.
The RM140 million investment will be financed with external funding facilities, underpinned by the group’s robust financial position, including a zero net debt balance sheet and a debt-to- equity ratio of about 0.15 times.
