Kedah draws RM1.6 bil investment in green technology paper

ALOR SETAR: China-based Zhejiang Element Holding Co Ltd is set to invest RM1.6 bil in the green technology paper industry in Kedah.

This follows the signing of a memorandum of understanding (MoU) between the company, together with its strategic partner Genting Ehsan (SP) Sdn Bhd, and the state government’s investment arm, Invest Kedah Bhd, here today.

Invest Kedah will act as a facilitator in helping Zhejiang Element and Genting Ehsan (SP) realise their investment.

Menteri Besar Datuk Seri Mukhriz Mahathir said the agreement involves three forms of investment – the development of a wood flooring factory and a green technology paper industry by the Chinese company, and the cooperation with the Kedah government in the timber and forestry industries.

The cooperation involves bringing modern technology to the eucalyptus species planting and processing sector and establishing a new ecological industry chain in Kedah, he said.

“For the first investment of RM150 mil, Zhejiang Element’s subsidiary Yunhua Timber Co Ltd is developing a wood flooring facility in the Bukit Selambau Industrial Area, Sungai Petani. Construction is 80% complete and the factory is expected to be operational in a few months,” Mukhriz told a media conference here.

Earlier, he witnessed the MoU signing with Tan Kok Yew, the state exco on industry and investment.

Mukhriz said Zhejiang Element’s second investment, amounting to RM1.6 bil over three phases, would be a mill to produce green technology paper with a daily production capacity of 1.3 million tonnes.

Under the first phase, the facility will be able to produce 400,000 tonnes of craft liner board daily. The next phase will see the capacity rising by another 300,000 tonnes as well as the production of 300,000 tonnes of wood pulp daily. The last phase involves the production of special paper with a daily capacity of 300,000 tonnes.

On the eucalyptus cultivation to supply raw materials to the mill, Mukhriz said at present, the trees were in Cameron Highlands, Pahang.

Meanwhile, he said, according to the Malaysian Investment Development Authority, Kedah attracted RM7.8 bil in approved investments in the manufacturing sector between January and September last year, the third highest after Penang and Selangor. – Jan 22, 2020, Bernama

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