From left: Haji Mohd Fauzee Haji Tahir, director, Aramijaya Agri & Agro; Lee Hun Kheng, group CEO, PLS Plantations; Koichi Sato, executive officer, Nippon Paper Industries; and Yoshikazu Kume, general manager, forestry department, Nippon Paper Industries
KUALA LUMPUR: PLS Plantations Bhd
is undergoing a three-year collaboration with Nippon Paper Industries Co Ltd (NPI) and Nippon Paper Lumber Co Ltd (NPL) to explore the feasibility of developing a large-scale eucalyptus plantation programme in Malaysia.
In a statement, it said it had inked a strategic partnership agreement (SPA) and joint research agreement to outline the partnership in developing the planting programme and advance related technical research.
PLS and its subsidiary, Aramijaya Agri & Agro Sdn Bhd, executed the joint research agreement with NPI and NPL, which sets out the detailed scope, methodology, and implementation of the technical guidance to be provided by NPI and NPL.
PLS said the SPA will assess the feasibility of the planting programe, which targets 20,000 to 30,000ha of lands operated by the plantations group.
The SPA will also facilitate the introduction of improvements in genetic resources for eucalyptus, seedling production systems, planting methodologies and plantation management frameworks.
Additionally, the parties will evaluate potential downstream commercialisation opportunities including woodchips, pellets, biomass and carbon-related application.
Upon the completion of the research and feasibility phases, the parties will decide on the formation of a joint venture.
The SPA commenced on Jan 1, 2026, and will conclude on Dec 31, 2028.
"With Nippon Paper Group’s extensive expertise in forestry management and development, we are confident that the joint research will provide valuable insights into Malaysia’s potential for sustainable, large scale eucalyptus plantation development.
"Beyond research, this collaboration establishes a platform for long term value creation, including meaningful gross development value (GDV) potential, underpinned by technical excellence, responsible forestry practices, and ESG aligned initiatives consistent with recognised forest stewardship standards,
including the development of local talent and creation of job opportunities," said PLS group CEO Lee Hun Kheng.
NPI raw material and purchasing division executive officer Koichi Sato noted that the development of eucalyptus plantations in Malaysia remains challenging.
"Through this collaboration, Nippon Paper Group will apply its accumulated expertise and know-how in eucalyptus plantation development and forest management in alignment with Malaysia’s natural environment and, together with PLS, advance initiatives with a view toward future business implementation."
