SEDC, Shan Ying of China sign MoU on pulp and paper plant in Samalaju
KUCHING: Sarawak Economic Development Corporation (SEDC) and Shan Ying International Holdings Co. Ltd ( Shan Ying) of China had entered into a Memorandum of Understanding ( MoU) in China recently to collaborate on and explore the viability of establishing a pulp and paper plant in Samalaju, Bintulu.
According to a press release by SEDC, the MoU signing ceremony was held in Ma’anshan City, Anhui Province of China on April 3.
“The MoU document was signed by both parties which will collaborate on the establishment of a pulp and paper manufacturing plant in Sarawak, witnessed by Chief Minister Datuk Patinggi Abang Johari Tun Openg,” added the press release.
During the ceremony, SEDC was represented by its chairman, Tan Sri Datuk Amar Abdul Aziz Husain, while Shan Ying was represented by Wu Mingwu, chairman of Shan Ying.
Speaking at the exchange of MoU documents, Abdul Aziz said SEDC welcomes new investors and business partners to work together with SEDC in developing Sarawak’s vast potential and this mega pulp and paper project will be one of many that will transform Sarawak’s economy to greater heights.
This is also in line with SEDC’s core objectives, one of which is the development of pioneering and strategic projects for Sarawak, he added.
He thanked the Sarawak government, especially the Chief Minister, for the trust given to SEDC, apart from thanking the host for welcoming Sarawak’s delegation to Nanjing and working together with SEDC for this historical event.
According to him, SEDC looks forward to a successful collaboration with Shan Ying on this project.
He hoped it would achieve its objectives and give significant benefits to the people of Sarawak as well as for a better future for mankind in general.
Meanwhile during the ceremony, Abang Johari, in his speech, also said Sarawak welcomes the proposed investment for the pulp and paper manufacturing plant in Sarawak.
“This project is a value- added industry based on imported recycle paper without having to exploit our natural resources with clean, safe and environment friendly technology that uses our renewable energy from hydroelectric infrastructure. There will always be demand for high quality paper for printouts and packaging for products bought through online shopping,” said Abang Johari.
Abang Johari also said that he was impressed with Shan Ying’s environmentally and eco-friendly technology for paper production which includes extensive waste water treatment facility.
He said this is also in line with Sarawak government’s emphasis on clean and safe investment environment for Sarawak.
With Shan Ying coming to invest in Sarawak Corridor of Renewable Energy (SCORE), there will be economic spinoff benefits for the people of Sarawak.
“There will be an expected demand for skilled manpower that requires sharing of technical expertise, leading to development of training centres and technical colleges that can produce skilled manpower needed for such industries, uplifting the education and technical level of its people and in turn benefitting the whole community. This would definitely contribute greatly to Sarawak’s economic growth,” commented Abang Johari.
Shan Ying was established in 1957 and is an international China- based Fortune 500 company, principally engaged in the manufacture and distribution of paper products, and is one of the large industrial papermaking enterprises and extra- large packaging board manufacturers in China.
It is also Shanghai Stock Exchange listed company with subsidiaries in China and whollyowned companies based in the USA, UK, Germany, Netherlands, Japan, Australia and Hong Kong.
The company has built the domestic and foreign regenerated fibre recycling network, water transport terminals, private power stations, industrial wastewater treatment facilities and other supporting systems; and boasts an annual yield of 3,050,000 tonnes of paper and one billion m2 of cardboard and paper carton, ranking top within the industry in terms of production scale.
For Sarawak, the company intends to establish a fully automated pulp and paper manufacturing plant in Samalaju Industrial Park with a production capacity of two million tonnes per annum and manned by 2,500 personnel.
The USD1.8 billion ( RM7.3 billion) project will be implemented in two phases, with the construction of Phase 1 of the plant planned to commence in 2020 and is targeted to be completed and operational by 2023. Phase 2 will commence immediately after completion of Phase 1.