KUALA LUMPUR: Pulp and paper manufacturer
Nextgreen Global Bhd (NGB), via its subsidiary Nextgreen IOI Pulp Sdn Bhd (NIP), signed a memorandum of understanding (MoU) with Xiamen C&D Paper & Pulp Group Co Ltd (Xiamen C&D).
This is a strategic collaboration for developing and operating a green and sustainable paper pulp production facility.
NGB 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 preconditioning refiner chemical-recycle bleached mechanised pulp (PRC-RBMP) technology with its China-based partner, we aim to pioneer a new era of eco-friendly industrial practices, driving progress and accelerate prosperity for the region and beyond,” he said in a statement.
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 per cent 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, 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 NGB’s patented (PRC-RBMP) technology.
NIP will lead 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.
“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,” Lim said.
