LURING China Fortune 500 Company Nine Dragons Paper (Holdings) Ltd to set up a multi-billion ringgit operation in Malaysia is tantamount to an endorsement for the country as a preferred investment destination.
After all, Nine Dragons and its subsidiaries are among the major paper and paperboard producers in Asia by engaging in the manufacturing of containerboard products, including linerboard, high performance corrugating medium, coated duplex board and carton box.
Thanks to efforts of the Malaysian Investment Development Authority (MIDA), Nine Dragons has invested in two manufacturing facilities, namely ND Paper (M) Sdn Bhd in Bentong (Pahang) vis-à-vis an acquisition of an existing pulp and paper mill with total investment value of RM1.2 bil and ND Paper Malaysia (Selangor) Sdn Bhd in Banting for RM4.2 bil.
Focusing on test liner, kraft liner, corrugated medium paper, paper and pulp, both projects will create a total of 2,180 job opportunities, of which 90% will be made up of Malaysians. The project in Banting is expected to commence operation by 2022.
Both factories will be fully automated and equipped with Industry 4.0 technology such as system integration, Internet of Things (IoT), big data analytic and cloud computing from Europe and China.
Nine Dragons is listed on the Hong Kong Stock Exchange’s main board and is currently ranked first in the China Fortune 500 list under the sector of paper, printing and packaging companies.
Boasting a workforce of 19,000, the group owns facilities in China, Vietnam and the US with an annual production capacity of more than 18.4 million tonnes and is valued at more than 60 bil yuan (RM37.6 bil).
For the record, MIDA approved a total of 572 manufacturing projects with China interest with investment value of RM78.61 bil as of end-December last year.
“The investment environment in Malaysia is attractive,” remarked Nine Dragon chairwoman Cheung Yan during a courtesy call on Prime Minister Tan Sri Muhyiddin Yassin in Putrajaya.
“The country’s strategic location and infrastructure; established local supply chains that are well-integrated into the global value chain as well as the strength of its skilled talent pool offer an undeniable competitive advantage to our business.”
Moreover, Malaysia’s business-friendly policies such as its latest initiative of the One Stop Centre (OSC) for Business Travellers managed by MIDA to ease travel for businesses has further strengthened Nine Dragon’s confidence to invest in the country.
“I am very grateful to make this investment decision based on these fundamentals,” she further pointed out. “We believe governments and enterprises need to mutually support and collaborate with each other. We are ready to be part of Malaysia’s diverse industry.” – March 2, 2021