NEXTGREEN Global Bhd, a pulp and paper manufacturer, through its subsidiary, Nextgreen IOI Pulp Sdn Bhd, has entered a strategic collaboration with China’s Xiamen C&D Paper & Pulp Group Co Ltd 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 which comes under Xiamen C&D Corp Ltd, a global Fortune 500 company.
Under a memorandum of understanding inked on Friday (April 12), Nextgreen IOI and Xiamen C&D will establish a joint venture company with equity interests of 75% and 25% 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 made from oil palm empty fruit bunches per annum. The entire process leverages NGGB’s patented Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (PRC-RBMP) technology.
Nextgreen IOI will take the lead in feasibility studies, project preparation, procurement and business development while also engaging with stakeholders and external financiers. On the other hand, 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 strategic collaboration marks a shared commitment to innovation, sustainability and economic development that is a win-win for both parties,” commented Nextgreen Global’s managing director Datuk Lim Thiam Huat.
“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.”
The Nextgreen IOI-Xiamen C&D MOU comes on the back of our recent announcement that Nextgreen Global has entered into a shareholders’ agreement with IOI Paper Pulp Sdn Bhd, an indirect wholly owned subsidiary of IOI Corporation Bhd.
The partnership paves the way for development of the first large-scale zero-waste paper pulp plant at GTP Pekan. “The swift progress highlights our dedication and nimbleness in completing our master plan,” added Lim.
At 10.20am, Nextgreen Global was down 2.5 sen or 2.48% to 98.5 sen with 3.18 million shares traded, thus valuing the company at RM1.01 bil. – April 15, 2024
