DXN Invests RM77mil In Brazil Expansion

DXN Holdings Bhd is ramping up its manufacturing presence in Latin America with a new facility in Brazil, where it will invest at least 100 million Brazilian reals (about RM77 million) over five years.

In a statement, the wellness products manufacturer said the new facility in Ibiá, Minas Gerais, is expected to become its largest manufacturing base in Latin America, strengthening its ability to serve Brazil and other markets in the region.

Latin America is DXN’s largest revenue contributor, accounting for 61.2% of the company’s revenue, or about RM1.2 billion, for the financial year ended Feb 28, 2026. The region had roughly 4.8 million captive consumers as at July 31, underscoring its importance to the company’s long-term growth strategy.

DXN Holdings Bhd has announced the groundbreaking of its new manufacturing facility in Ibiá, Brazil, marking a significant step in the Company’s continued expansion of its manufacturing footprint across Latin America.

The facility is being built on a 100,745-square-metre site provided by the Municipality of Ibiá under a conditional land donation arrangement. Construction is targeted for completion by September 2029, with production expected to begin by the end of the year.

DXN executive director and group chief executive officer Prajith Pavithran said the investment would allow the company to manufacture closer to its customers, improving product availability while shortening supply routes and enabling faster responses to shifts in demand.

“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 said the facility will also strengthen its vertically integrated supply chain, with raw materials sourced from both its own agricultural operations and local suppliers. Among them will be Arabica coffee beans from DXN’s 155.8-hectare plantation in Ibiá, linking the company’s upstream cultivation activities with its downstream manufacturing. According to Ibiá mayor Gillianno Mamao, the facility is expected to create between 200 and 250 direct and indirect jobs.

The Brazil investment is part of DXN’s broader RM500 million capital expenditure programme to expand manufacturing capacity across multiple regions. The company currently operates two manufacturing facilities in Mexico and is also developing facilities in Peru and Bolivia. DXN held the groundbreaking ceremony for its Peru facility in September 2025, followed by its Bolivia facility in April this year.

With the addition of the Brazil facility, DXN will have a more localised manufacturing network spanning four key Latin American markets, which could help reduce supply chain lead times and offer greater flexibility to tailor products to regional demand.

The expansion follows DXN’s earlier memorandum of understanding with Apex Brasil to support its broader investment plans and deepen its operating presence in Brazil.

Malaysia External Trade Development Corporation trade commissioner to Brazil, Amirul Azman Ahmad, said the investment reflects the growing internationalisation of Malaysian companies and their shift beyond exports and distribution toward local manufacturing and integration into regional supply chains.

“The development of a significant manufacturing base in Brazil demonstrates how Malaysian companies can progress beyond exports and distribution towards deeper localisation, manufacturing and integration into regional supply chains,” he said.

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