Nextgreen and two Ja­panese firms to in­vest in palm oil ven­ture

The Star Malaysia - StarBiz - - News - By ZUNAIRA SAIEED zu­naita@thes­

KUALA LUMPUR: Print­ing and pub­lish­ing com­pany Nextgreen Global Bhd is co-in­vest­ing around RM700mil with two listed Ja­panese firms to utilise palm oil in­dus­try waste and biomass for the de­vel­op­ment of the sec­ond phase of the Green Tech­nol­ogy Park in Pekan, Pa­hang.

The RM2­bil green tech­nol­ogy park (GTP) is cur­rently be­ing built on an area of 410 acres com­pris­ing of five phases.

Yes­ter­day, Nextgreen signed a mem­o­ran­dum of un­der­stand­ing (MoU) with Tokoyo Stock Ex­change-listed heavy in­dus­try man­u­fac­turer IHI Cor­po­ra­tion and No­mura Hold­ings to eval­u­ate the busi­ness struc­ture, source of fund­ing and the com­bined tech­nolo­gies of both IHI and Nextgreen for the sec­ond phase.

Nextgreen man­ag­ing direc­tor Datuk Lim Thiam Huat said the fund­ing for the sec­ond phase (2a and 2b) was likely to be raised from ei­ther bonds or loans, mainly from Ja­pan.

These will fi­nalised dur­ing the fea­si­bil­ity study stage.

“The fea­si­bil­ity study which will be fi­nalised by March next year will help de­cide the best way to raise funds for the sec­ond phase of the green tech­nol­ogy park,” he told re­porters dur­ing a press con­fer­ence. No­mura Hold­ings, the fi­nan­cial ser­vices group, is un­der­stood to help raise funds for the sec­ond phase of GTP.

Fol­low­ing the MoU, the con­struc­tion of the sec­ond phase is ex­pected to start by March next year with a com­ple­tion tar­get of within two years.

Un­der Phase 1, Nextgreen is build­ing a pulp and pa­per mill with an an­nual pro­duc­tion ca­pac­ity of 10,000 tonnes, slated to fin­ish con­struc­tion by May in 2019.

Mean­while, Lim said the Ja­panese part­ners were look­ing at eq­uity part­ner­ship for the project, with Nextgreen hold­ing a ma­jor­ity share. The eq­uity part­ner­ship will be fi­nalised dur­ing the fea­si­bil­ity study stage.

For Phase 2, he re­vealed that Ja­pan’s IHI Corp would con­tribute around 60% of its re­new­able en­ergy tech­nolo­gies, while Nextgreen will de­ploy its pro­pri­etary tech­nol­ogy of con­vert­ing empty fruit bunch (EFB) into pulp and pa­per.

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