China's Nine Dragons Paper investing RM5.4bil in Malaysia

Third From left is Nine Dragons Paper (Holdings) Ltd chairlady, Cheung Yan with Prime Minister Tan Sri Muhyiddin Muhammad Yassin. First from left is Nine Dragons Paper PR and admin director Isabel Kow Soek Foon and deputy CEO Zhang Cheng Fei. Second from right is Senior Minister, Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali and MIDA CEO Datuk Azman Mahmud.

KUALA LUMPUR: Nine Dragons Paper (Holdings) Ltd, the largest paperboard producer in Asia, is investing RM5.4bil into two manufacturing facilities in Malaysia.

One facility is ND Paper (M) Sdn Bhd in Bentong, Pahang, with a RM1.2bil acquisition and investment involving an existing pulp and paper mill.

Another facility is ND Paper Malaysia (Selangor) Sdn Bhd in Banting with a RM4.2bil plant that will focus on test liner, kraft liner, corrugated medium paper, paper and pulp.

The project in Banting is expected to be in operation by 2022.

Both factories will be fully automated and equipped with Industry 4.0 technology such as system integration, Internet of Things (IoT), big data analytic and cloud computing from Europe and China.

A statement issued by the Malaysian Investment Development Authority (Mida) said these projects will create 2,180 job opportunities, of which nearly 90% will be for Malaysians.

Hong Kong Main Board-listed Nine Dragons Paper is currently ranked first in the China Fortune 500 list under the sector of paper, printing and packaging companies.

The group owns facilities in China, Vietnam and the United States with an annual production capacity of more than 18.4 million tonnes and valued at more than 60 billion yuan. The group has a workforce of 19,000 people.

Nine Dragons Paper chairlady Cheung Yan paid a courtesy call to Prime Minister Tan Sri Muhyiddin Yassin at his office in Putrajaya yesterday.

Also present were Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali, Mida CEO Datuk Azman Mahmud and Nine Dragons Paper deputy CEO Zhang Cheng Fei.

Muhyiddin said that as at December 2020, a total of 572 manufacturing projects involving investors from China, with investments of RM78.61bil, have been approved by Mida.

“We are confident that Nine Dragons Paper being a China Fortune 500 company will be an endorsement for Malaysia as a preferred investment destination, ” said the Prime Minister.

Cheung Yan said the investment environment in Malaysia is attractive with the country’s strategic location and infrastructure, established local supply chains that are well-integrated into the global value chain as well as the strength of its skilled talent pool.

“Moreover, Malaysia’s business-friendly policies such as its latest initiative of the One Stop Centre (OSC) for business travellers managed by Mida to ease travel for businesses further strengthened our confidence in investing here, ” she said.