KUALA LUMPUR: Nextgreen IOI Pulp Sdn Bhd, a joint venture (JV) between Nextgreen Global Bhd
and IOI Corp Bhd, has entered into a partnership with HK Paper Sources Co Ltd to undertake the proposed development and operation of a pulp production facility in Green Technology Park (GTP) in Paloh Hinai in Pekan, Pahang.
Nextgreen IOI Pulp - which is 55% owned by Nextgreen Global with the remaining 45% stake owned by IOI - had inked a JV agreement with Hong Kong Paper Sources, a wholly-owned subsidiary of Xiamen C&D Paper & Pulp Group Co Ltd.
Under the terms of the agreement, Nextgreen IOI Pulp will hold 75% equity in the JV company while HK Paper Sources will own the remaining 25%.
The facility, which is to be developed on 81 acres of land within the park, is targeted for completion within 24 months and will utilise Malaysia’s abundant palm biomass, specifically empty fruit bunch (EFB), to produce high-quality pulp.
Phase 1 will see 150,000 tonnes of pulp being produced annually, with a total estimated capital expenditure of RM900mil.
Nextgreen Global will contribute technology and technical expertise using its patented Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (PRC-RBMP) technology, while Xiamen C&D will take the lead in product off-taking and distribution.
"This joint venture between NIP and Xiamen C&D Paper & Pulp is a powerful testament to the growing synergy between China and Malaysia in building a greener economy together and represents an important initiative for Xiamen C&D Group in the pulp and paper sector.
"By integrating NIP’s strength in palm biomass sourcing and processing innovation, together with our robust distribution network, this partnership lays the foundation for a more sustainable pulp and paper supply chain, as well as a more integrated regional economy," said Xiamen C&D Paper & Pulp Group CEO Zhang Xiao Hui in a statement.
