Nextgreen on the next level

NEXTGREEN Global Bhd is hoping that as it ramps up output and scales operations this year, the fruits of its labour will yield even greater profits.

Its growth is being driven by a joint venture (JV) with IOI Corp Bhd and Xiamen C&D Paper & Pulp Co Ltd, as well as a boost in fertiliser production with its solid fertiliser plant expected to be ready by mid-2025.

A suite of products – including animal feed, glue, concrete additives and blue urea fertiliser – derived from converting empty fruit bunches (EFB) into pulp and paper products, will also be rolled out over the next two years.

“We are aiming to push these products into the market as soon as possible,” managing director Datuk Lim Thiam Huat tells StarBiz 7, adding “there will be a lot of activity this year,” with discussions with off-takers and potential distributors in progress.

Last month, Nextgreen inked a JV agreement with IOI Corp and Xiamen C&D to jointly develop a paper pulp production facility at its flagship 410-acre Green Technology Park (GTP) in Pekan, Pahang. The JV company, NeuWhite Paper Pulp Sdn Bhd, was incorporated last week.

“This project consists of two stages. We have appointed a contractor. Site work for the first stage has started,” Lim says.

Slated for completion in 2027, it will initially produce 150,000 tonnes of pulp a year with 300,000 tonnes added by 2028 or 2029, bringing total output to 450,000 tonnes.

The project is expected to generate RM450mil in annual revenue from 2027.

This JV is part of the broader GTP master plan, which currently comprises three phases.

Phase 1 houses a 10,000-tonne wood-free pulp and paper manufacturing plant along with fertiliser facilities.

Phases 2A and 2B will incorporate the upcoming paper pulp facilities under the JV, while Phase 3, still in planning, will include a tissue paper plant and light industries.

Notably, the fertiliser segment remains a key profit driver, with its liquid fertiliser, NexCompost®, delivering a gross profit margin of up to 80% and its solid fertiliser, NexBooster™, at about 30%.

Each has an annual capacity of 30,000 tonnes.

“Our technology allows us to convert pulp-making residue into value-added products in a cost-efficient manner.

“Once our solid fertiliser plant is ready in June, total capacity will reach 60,000 tonnes.

“Last year, we produced about 3,000 tonnes of liquid fertiliser, just 10% of the available capacity. This year we expect a significant increase as more deals materialise,” he says.

Lim says off-takers for its liquid fertiliser include durian plantations, palm oil estates as well as paddy growers under Felcra and in Sekinchan.

He adds the group’s liquid fertiliser has delivered tangible results, most notably a 40% increase in paddy yields for over two harvests.

“We are confident that the third harvest will perform just as well, if not better,” Lim says.

The group’s liquid fertiliser is also competitively priced. Lim says the group’s liquid fertiliser is comparable to those from Japan, Italy and Germany, but is offered at a fraction of the price.

“Imported fertilisers can cost between RM25 and RM35 a litre (or around RM28,000 a tonne). Our fertilisers cost just RM10 a litre, or roughly RM10,000 a tonne,” Lim says.

He says the group is also expanding the application of its fertiliser to the paddy sector in Thailand and Indonesia.

Nextgreen is also expanding its fertiliser use to include coffee, cocoa and cotton plantations. It has received enquiries from Uzbekistan for cotton and Côte d’Ivoire for cocoa.

“We have conducted field tests in Uzbekistan and we are confident that our fertiliser can boost their cotton yields by at least 10% per harvest,” Lim says.

Fertiliser sales accounted for over half of the group’s manufacturing revenue in the financial year ended Dec 31, 2024 (FY24).

Nextgreen’s net profit was more than double year-on-year at RM24.8mil, with the bulk from manufacturing.

The group will also start producing blue urea by the third quarter of this year while the product launch will likely be by year-end.

Other products in the pipeline include animal feed, industry-grade glue and cement additive. Lim says while formal agreements have yet to be signed, the company is already in discussions with potential off-takers and distributors.

“We aim to complete the animal feed plant by September. More products will follow as we start operations at our pulp manufacturing plant in Phase 2A and 2B,” he says.

Lim notes that Nextgreen plans to set up paper pulp facilities in Sabah and Sarawak through the JV once the current plan proves successful.

The group aims to establish 20 collection centres across Malaysia to collect EFB from palm oil mills.

Each collection centre will require an average capital expenditure of around RM50mil, depending on location and infrastructure needs.

At present, the company has only one operational collection centre – in the GTP. The group is in the midst of setting up a collection centre in Gua Musang, Kota Tinggi and Segamat.

The remaining 16 centres are expected to be completed over the next six to seven years.

“The collection centres will be near the GTP and palm oil mills,” says Lim.

Nextgreen had started out as a printing and publishing company, providing pre-press, press and post-press services. However, revenue from this segment had been declining amid stiffer competition.

In FY20, the group shifted its focus to packaging, partnering with Japan-based Crown Package Co Ltd for the manufacturing and sale of pulp moulding made from EFB, as well as selling packaging materials to Japan.

Lim says the company’s long-term vision is for Crown Package to set up integrated value-added production lines at the GTP, establishing Malaysia as their supply hub for South-East Asia.

He adds that such collaborations reflect the group’s broader strategy of solidifying its position as a key player in the country’s green industrial transformation.

“Through strategic partnerships, innovative upcycling technologies, and a circular economy model, the company is not only turning agricultural waste into high-value products, it’s supporting Malaysia’s goal of shaping the future of sustainable manufacturing,” he says.