DXN Holdings plans coffee-processing factory in Brazil to strengthen Latin American presence
The new factory in Minas Gerais would mark DXN’s first direct investment in Brazil and its second major hub outside Asia.
MALAYSIA – Health and wellness company DXN Holdings Bhd is exploring plans to set up a coffee-processing factory in Minas Gerais, Brazil, marking its first direct investment in the country and a key milestone in the company’s Latin American expansion strategy.
Founder and executive chairman Datuk Lim Siow Jin said the initiative reflects DXN’s confidence in Brazil’s growth potential and underscores the nation’s importance within the group’s global manufacturing network.
“Brazil is the next logical step for DXN in Latin America. The region is currently driving our growth, and we see Brazil’s economies of scale, young demographics, and rising health-consciousness as highly complementary to our established operations in Peru and Bolivia,” Lim stated at the Malaysia-Brazil Business Summit in Kuala Lumpur.
Latin America remains DXN’s strongest regional market, contributing about 60%, or more than RM1 billion, to group revenue for the financial year ended Feb 28, 2025 (FY2025).
Lim said this contribution is expected to remain stable over the near term, highlighting the region’s ongoing strategic significance to the company’s earnings.
DXN currently operates a vast network in Mexico, Peru, and Bolivia, supported by a global membership base exceeding 10 million, of which approximately 60% are located in Latin America.
The proposed investment in Brazil includes both the construction of a coffee-processing facility and the transfer of Malaysian-developed technology.
DXN plans to introduce innovations such as civet-style fermented coffee and tea brewed from coffee leaves, products that Lim described as “new and exciting” additions to Brazil’s coffee market.
“We intend to bring our proprietary technology to Brazil to introduce a new concept in the local coffee industry. Malaysia has significant expertise in developing high-value coffee products, and we believe this transfer of knowledge can create new market opportunities in Brazil,” Lim said.
He noted that Brazil was selected for its climate and soil conditions, which closely resemble those of Malaysia. This similarity, he explained, will allow DXN to replicate its agricultural and processing methods with minimal adjustments.
According to Lim, the government of Minas Gerais has extended several investment incentives, including 10 hectares of free land, simplified approval processes, and reduced land costs, reflecting its commitment to fostering foreign partnerships and industrial growth.
Industry analysts observed that DXN’s entry into Brazil aligns with the country’s ambition to diversify its coffee sector into higher value-added areas such as specialty coffee, wellness products, and nutraceuticals; segments where DXN holds a strong competitive edge.
If realised, the Minas Gerais plant would become DXN’s second major manufacturing hub outside Asia, reinforcing its global supply chain and enhancing its ability to serve the rapidly growing Latin American market.
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