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Nextgreen IOI, HK Paper Sources to jointly develop pulp production facility

The Star·04/16/2025 05:26:00
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KUALA LUMPUR: Nextgreen IOI Pulp Sdn Bhd, a joint venture (JV) between Nextgreen Global Bhd and IOI Corp Bhd, has entered into a partnership with HK Paper Sources Co Ltd to undertake the proposed development and operation of a pulp production facility in Green Technology Park (GTP) in Paloh Hinai in Pekan, Pahang.

In a filing with Bursa Malaysia, Nextgreen said its 55%-owned subsidiary Nextgreen IOI Pulp Sdn Bhd (45%-owned by IOI) had inked a JV agreement with Hong Kong Paper Sources, a wholly-owned subsidiary of Xiamen C&D Paper & Pulp Group Co Ltd.

Under the terms of the agreement, Nextgreen IOI Pulp will hold 75% equity in the JV company while HK Paper Sources will own the remaining 25%.

According to the group, the production facility will have an initial capacity to produce 150,000 tonnes per annum of paper pulp, made from oil palm empty fruit bunches (EFB), using the patented

preconditioning refiner chemical-recycle bleached mechanised pulp (PRC-RBMP) technology.

The development land for the project shall be purchased from Nextgreen's wholly-owned subsidiary Ultimate Ivory Sdn Bhd, which shall enter into a sales and purchase agreement with the JV company for the transfer of 375 acres.

The sale price of the land shall not exceed the market value as determined by a vluation report, and not exceed RM868,763.84 per acre.