PUTRAJAYA: Nextgreen Global Bhd subsidiary Nextgreen IOI Pulp Sdn Bhd (NIP) has partnered with Hong Kong Paper Sources Co Ltd’s subsidiary, Xiamen C&D Paper & Pulp Group Co Ltd, to develop a 150,000-tonne integrated pulp production facility, which will require an estimated RM900 million in capital expenditure.
NIP and Xiamen C&D will establish a joint venture entity in Malaysia. The new entity will spearhead the development of a pulp production facility at the Green Technology Park (GTP) in Pekan, Pahang, a key node within the Eastern Corridor Economic Region’s Special Economic Zone.
NIP will hold 75% equity and Xiamen C&D Paper & Pulp 25% in the joint venture.
The facility will be developed on 81 acres of land within the GTP and is expected to be completed within 24 months. It will utilise Malaysia’s abundant palm biomass, specifically empty fruit bunches (EFB), to produce high-quality pulp.
Phase 1 targets an annual production capacity of 150,000 tonnes of chemical bleached pulp from EFB, up from the original 100,000-tonne target.
Nextgreen managing director Datuk Lim Thiam Huat said the capital expenditure has been revised to RM900 million, up from RM600 million, due to the expanded production line.
“Now we have increased (the capex) due to the technical support from C&D, looking at the viability and efficiency design flow of the first plant that we targeted to set up. That’s the reason why we increased to 150,000. It becomes more efficient and the capex will be RM900 million,” he said at the signing ceremony yesterday.
Xiamen C&D Paper general manager and director of Hong Kong Paper Sources Zhang Xiao Hui said the joint venture between NIP and Xiamen C&D is a testament to the growing synergies 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 and a more integrated regional economy,“ he said.
He added that the project enjoys strong support from the Malaysian government.
Strategically located within the ECER Special Economic Zone, the 410-acre GTP is poised to become a regional hub for green manufacturing and bio-industrial activities.
“This is beyond an investment in infrastructure and serves as a blueprint for ESG-centric development.
“We are committed to promoting and advancing the development of environmentally friendly pulp production facilities, which will be a critical catalyst in realising the GTP master plan and advancing both nations’ ambitions in sustainable economic development,“ Zhang said.
NIP is a joint venture between Nextgreen Global and IOI Corporation Bhd, while Xiamen C&D Paper & Pulp is the wholly owned subsidiary of Xiamen C&D, a Fortune Global 500 company that is involved in pulp and paper manufacturing and real estate development, among others, in China and other parts of the world.
Nextgreen Global will contribute technology and technical expertise using its patented preconditioning refiner chemical-recycle bleached mechanised pulp technology. At the same time, Xiamen C&D will take the lead in product off-taking and distribution.
