KUALA LUMPUR (April 12): Nextgreen IOI Pulp Sdn Bhd (NIP), a 55:45 joint venture between Nextgreen Global Bhd and IOI Corp Bhd that is planning a RM600 million paper pulp plant in Pekan, Pahang, wants to rope in a Chinese partner to help develop and operate the facility.

NIP has inked a memorandum of understanding (MOU) with Xiamen C&D Paper & Pulp Group Co Ltd (Xiamen C&D), a wholly-owned subsidiary of Xiamen C&D Inc under Xiamen C&D Corp Ltd, a Fortune 500 company that is involved in supply chain operation and real estate development, among others, for the partnership.
 
Under the MOU, NIP and Xiamen C&D will establish a joint venture company (JVco), with Nextgreen IOI Pulp holding a 75% stake and Xiamen C&D holding the remaining 25%, according to Nextgreen Global's bourse filing on Friday.

The paper pulp production facility will be developed across 43 acres of land within the 410-acre Green Technology Park that is part of the Eastern Corridor Economic Region or ECER.

The initial production capacity is expected to be 100,000 tonnes of paper pulp per annum, made from oil palm empty fruit bunches, using Nextgreen Global’s patented Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (PRC-RBMP) technology.

NIP will lead in feasibility studies, project preparation, procurement, and business development. It will also engage with stakeholders and external financiers. Xiamen C&D will support business development, assist in securing external financing, and manage the off-take of the facility's output.

The MOU will be effective for one year until the formation of the JVco.

In a separate statement, Nextgreen Global director Datuk Lim Thiam Huat said the strategic collaboration reflects both parties' shared commitment to innovation, sustainability, and economic growth, benefiting both parties.

"By scaling up the utilisation of the innovative PRC-RBMP technology with our China-based partner, a leading enterprise in paper sales, pulp imports, and sales in China, we aim to pioneer a new era of eco-friendly industrial practices, driving progress and accelerating prosperity for the region and beyond," Lim said.

Shares in Nextgreen settled a sen or 1% higher at RM1.01 on Friday, valuing the group at RM1.03 billion.