Pekan: Nextgreen IOI Pulp Sdn Bhd (NIP), a joint venture between Nextgreen Global Bhd and IOI Corporation Bhd, has teamed up with Hong Kong Paper Sources Co Ltd to develop a high-capacity, bio-integrated pulp production facility at the Green Technology Park in Pekan, Pahang. The joint venture agreement outlines that NIP will hold a 75 percent equity stake while the China-based group will own the remaining 25 percent.

According to BERNAMA News Agency, the facility will be constructed over 24 months on a 32.77-hectare site at the Green Technology Park, a key node within the Eastern Corridor Economic Region Special Economic Zone. The facility will leverage Malaysia’s abundant palm biomass resources, particularly empty fruit bunches, to produce high-quality pulp.

Phase One of the project will see the production of 150,000 metric tonnes of pulp annually, with a total estimated capital expenditure of RM900 million. Nextgreen Global will provide technology and technical expertise using its patented preconditioning refiner chemical-recycle bleached mechanised pulp technology, while Xiamen C and D will focus on product off-taking and distribution.

Zhang Xiao Hui, general manager of Xiamen C and D Paper and Pulp, highlighted that the joint venture underscores the growing synergy between China and Malaysia in fostering a greener economy. He added that this partnership lays the foundation for a more sustainable pulp and paper supply chain and a more integrated regional economy, by combining NIP’s capabilities in palm biomass sourcing and processing with their robust distribution network.