Nextgreen IOI Pulp inks MOU with Xiamen C&D to establish pulp production facility
Nextgreen Global Berhad (NGGB), a pulp and paper manufacturer, announced that its subsidiary, Nextgreen IOI Pulp Sdn Bhd (Nextgreen IOI), has inked a memorandum of understanding (MoU) with Xiamen C&D Paper & Pulp Group Co Ltd (Xiamen C&D).
This is a strategic collaboration for the development and operation of a green and sustainable paper pulp production facility. Xiamen C&D is a wholly-owned subsidiary of Xiamen C&D Inc. under Xiamen C&D Corp Ltd, a global Fortune 500 company.
Under the MoU, NIP and Xiamen C&D will establish a joint venture company, with equity interests of 75 and 25 per cent respectively.
The paper pulp production facility is set to be developed across 43 acres of land within the 410-acre Green Technology Park (GTP) in Pekan, Pahang, which is part of the Eastern Corridor Economic Region (ECER).
The initial production capacity is expected to be 100,000 metric 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.
NGGB managing director Datuk Lim Thiam Huat said, “This strategic 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 ecofriendly industrial practices, driving progress and accelerate 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 Berhad, which paves the way for the development of the first large-scale zerowaste paper pulp plant at GTP.
“The swift progress highlights our dedication and nimbleness in completing our master plan.”