Nextgreen IOI Pulp in production facility deal

Mou with Xiamen C&d marks group’s sustainability push

“By scaling up the utilisation of the innovative PRC-RBMP technology with our China-based partner, a leading enterprise in terms of paper sales, pulp imports and sales in China, we aim to pioneer a new era of eco-friendly industrial practices.”

Datuk Lim Thiam Huat

PETALING JAYA: Nextgreen IOI Pulp Sdn Bhd (NIP), a joint venture between Nextgreen Global Bhd (NGGB) and IOI Corp Bhd, has inked a memorandum of understanding (MOU) with China’s Xiamen C&D Paper & Pulp Group Co Ltd (Xiamen C&D) for the proposed development and operation of a green and sustainable paper pulp production facility.

In a statement, NGGB says under the MOU, NIP and Xiamen C&D will establish a joint venture company, with equity interests of 75% and 25% respectively. NIP inturn is 55% owned by NGGB and 45% by IOI.

The NIP and Xiamen C&D joint venture company will be responsible for setting up a paper pulp production facility to be developed on 43 acres within the 410-acre Green Technology Park (GTP) in Pekan, Pahang, which is part of the Eastern Corridor Economic Region.

The proposed plant will have an initial production capacity of up to 100,000 tonnes of paper pulp per annum, made from oil palm empty fruit bunches, using NGGB’S patented preconditioning refiner chemical-recycle bleached mechanised pulp (PRC-RBMP) technology.

“NIP will take the lead in feasibility studies, project preparation, procurement, and business development, while also engaging with stakeholders and external financiers. Xiamen C&D will lend support in business development, assist with securing external financing, and manage the off-take of the facility’s output,” it notes in a statement.

NGGB managing director Datuk Lim Thiam Huat says the collaboration marks a shared commitment to innovation, sustainability, and economic development that is a win-win for both parties.

“By scaling up the utilisation of the innovative PRC-RBMP technology with our China-based partner, a leading enterprise in terms of paper sales, pulp imports and sales in China, we aim to pioneer a new era of eco-friendly industrial practices, driving progress and accelerate prosperity for the region and beyond,” he adds.

The MOU follows NGGB entering into a shareholders’ agreement with IOI Paper Pulp Sdn Bhd, an indirect wholly-owned subsidiary of IOI, marking a step forward in establishing Malaysia’s first large-scale zero-waste paper pulp plant at the GTP.

The project, which is expected to generate Rm300mil in revenue by 2026, involves an investment of about Rm600mil from both parties.

China based Xiamen C&D is a wholly-owned subsidiary of Xiamen C&D Inc under Xiamen C&D Corp Ltd, a global Fortune 500 company.