NEXTGREEN UNIT INKS DEAL

NIP and Xiamen C&D to develop sustainable paper pulp plant in Pekan

PULP and paper manufacturer Nextgreen Global Bhd and China’s Xiamen C&D Paper & Pulp Group Co Ltd will build a paper pulp production facility on a 17.4ha site at the Green Technology Park (GTP) in Pekan, Pahang.

The technology park is part of the Eastern Corridor Economic Region.

Nextgreen said yesterday its subsidiary, Nextgreen IOI Pulp Sdn Bhd (NIP), had inked a memorandum of understanding (MoU) with Xiamen C&D to develop and operate the green and sustainable paper pulp production facility.

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

NIP and Xiamen C&D will establish a joint-venture company with equity interests of 75 per cent and 25 per cent, respectively.

Nextgreen managing director Datuk Lim Thiam Huat said the collaboration marked a shared commitment to innovation, sustainability and economic development.

“By scaling up the utilisation of the innovative preconditioning refiner chemical-recycle bleached mechanised pulp (PRCRBMP) 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 prosperity for the region and beyond.

“This MoU comes on the back of our recent announcement that we have entered into a shareholders’ agreement with IOI Paper Pulp Sdn Bhd, an indirect wholly owned subsidiary of IOI Corporation Bhd, which paves the way for the development of the first large-scale zero-waste paper pulp plant at the GTP.

“The swift progress highlights our dedication and nimbleness in completing our master plan,” he in a statement.

The facility will have an initial production capacity of 100,000 tonnes of paper pulp per year, made from oil palm empty fruit bunches using Nextgreen’s patented 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, securing external financing and manage the off-take of the facility’s output.