NEXTGREEN SUBSIDIARY PARTNERS WITH CHINA-BASED GROUP TO DEVELOP PULP PRODUCTION FACILITY IN PAHANG

KUALA LUMPUR, April 16 (Bernama) -- Nextgreen IOI Pulp Sdn Bhd (NIP), a joint venture (JV) between Nextgreen Global Bhd (55 per cent) and IOI Corporation Bhd (45 per cent), has teamed up with Hong Kong Paper Sources Co Ltd to develop a high-capacity, bio-integrated pulp production facility at the Green Technology Park in Pekan, Pahang.

Under the JV agreement inked between NIP and Hong Kong Paper Sources, a wholly-owned subsidiary of Xiamen C&D Paper & Pulp Group Co Ltd, NIP will hold a 75 per cent equity stake while the China-based group will own the remaining 25 per cent.

In a joint statement today, the partners said the facility will be built over 24 months on a 32.77-hectare site at the Green Technology Park -- a key node within the Eastern Corridor Economic Region (ECER) Special Economic Zone -- and will utilise Malaysia’s rich palm biomass resources, particularly empty fruit bunches, to produce high-quality pulp.

“Phase One will see 150,000 metric tonnes of pulp being produced annually, with a total estimated capital expenditure of RM900 million,” they said.

According to the statement, Nextgreen Global will contribute technology and technical expertise using its patented preconditioning refiner chemical-recycle bleached mechanised pulp technology, while Xiamen C&D will take the lead in product off-taking and distribution.

Xiamen C&D Paper & Pulp general manager Zhang Xiao Hui said the JV 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,” he added.

-- BERNAMA