The company said in a press statement that it and HXCC had signed a memorandum of agreement in Beijing for creating a special-purpose vehicle to construct and manage Phases 2 & 3 of GTP, as well as its power station and other auxiliary facilities.
In a filing with Bursa Malaysia also on Tuesday, BHS explained that GTP was a park whose main industries used green technology to convert oil palm empty fruit bunches (EFB) into pulp and paper, box liner paper, corrugated paper and tissue paper.
It said Phase 2 might involve a factory with a capacity to produce 100,000 metric tonnes of box liner paper and 120,000 metric tonnes of corrugated paper while Phase 3 another factory with a capacity to produce 65,000 metric tonnes of tissue paper.
BHS managing director Datuk Lim Thiam Huat said at the signing ceremony that the group’s model for GTP, while focused on efficient utilisation of both palm oil biomass to achieve “zero waste” concept, would also integrate the generation of sustainable green energy to produce “green” products.
“In these areas HXCC will bring their experience to bear, allowing us to implement the necessary technology and know-how. Combined with our innovation and experience in paper and pulp manufacturing as well as our patented pre-conditioning refiner chemical-recycle bleached mechanised pulp technology for utilising EFB biomass, this will not only help to address the biomass issue in Malaysia but also revitalise the palm oil industry by turning its waste material into a usable commodity,” he said.
HXCC, founded in China in 1958, is a subsidiary of China Nuclear Engineering Group Corporation, a state central management company. BHS said it is a well-known construction company in the republic as well as a leading enterprise of nuclear power construction domestically in China and overseas.
BHS ventured into a sustainable business sector in 2015 through the construction of a production facility on a 26-acre site forming a part of the Pekan GTP.
The group fell into a group net loss of RM3.15mil for the year ended June 30, 2016 (FY16). It was profitable in its main businesses of printing and publishing as well as in construction, but its other businesses such as manufacturing using green technology and property development dragged the group into the red.