KUALA LUMPUR: 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 17.4 hectares at the 166-hectare Green Technology Park (GTP) in Pekan, Pahang.
The GTP is part of the Eastern Corridor Economic Region (ECER).
Nextgreen today said its subsidiary Nextgreen IOI Pulp Sdn Bhd (NIP) had inked a memorandum of understanding (MoU) with Xiamen C&D Paper to develop and operate the green and sustainable paper pulp production facility.
Xiamen C&D Paper 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 Paper 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 that benefit for both parties.
"By scaling up the utilisation of the innovative preconditioning refiner chemical-recycle bleached mechanised pulp (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.
"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 GTP.
"The swift progress highlights our dedication and nimbleness in completing our master plan," said Lim in a statement.
The facility will have an initial production capacity of 100,000 tonnes of paper pulp per annum, 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, assist with securing external financing, and manage the off-take of the facility's output.