Nextgreen IOI Pulp Partners Xiamen C&D To Develop Malaysia’s First 150,000MT Integrated Pulp Production Facility
16/04/2025, Corporate Communications
From left: Xiamen C&D Paper & Pulp Group General Manager Zhang Xiao Hui, Nextgreen Global Managing Director Dato’ Lim Thiam Huat and IOI Corporation Berhad Group Managing Director & Chief Executive Dato’ Lee Yeow Chor. (File pic by IOI Corporation).

PUTRAJAYA, 16 April 2025 – Nextgreen Global Berhad (“NGGB”), a pulp and paper manufacturer, today announced that its subsidiary, Nextgreen IOI Pulp Sdn. Bhd. (“NIP”), has signed a joint venture agreement with Hong Kong Paper Sources Co. Limited, a wholly-owned subsidiary of Xiamen C&D Paper & Pulp Group Co. Ltd. (“Xiamen C&D Paper & Pulp”) to establish a new entity in Malaysia. The new entity (“Joint Venture Company”) will spearhead the development of a high-capacity, bio-integrated pulp production facility at the Green Technology Park (“GTP”) in Pekan, Pahang, a key node within the Eastern Corridor Economic Region (“ECER”) Special Economic Zone.

Under the agreement, NIP will hold 75% equity while Xiamen C&D Paper & Pulp will hold the remaining 25%. As background, NIP is a joint venture company between NGGB and IOI Corporation Berhad, while Xiamen C&D Paper & Pulp is the wholly-owned subsidiary of Xiamen C&D Corp. Ltd., a Fortune Global 500 company that is involved in pulp and paper manufacturing and real estate development, among others, in China and other parts of the world.

The facility to be developed on 81 acres of land within the park is targeted for completion within 24 months and will utilise Malaysia’s abundant palm biomass, specifically empty fruit bunch (“EFB”), to produce high-quality pulp. Phase 1 will see 150,000 metric tonnes (“MT”) of pulp being produced annually, with a total estimated capital expenditure (“CAPEX”) of RM900 million. NGGB will contribute technology and technical expertise using its patented Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (“PRC-RBMP”) technology, while Xiamen C&D will take the lead in product off-taking and distribution.

(File pic by IOI Corporation).

Zhang Xiao Hui, Xiamen C&D Paper & Pulp Group Co. Ltd., General Manager and Hong Kong Paper Sources Co., Limited, Director said, “This joint venture between NIP and Xiamen C&D Paper & Pulp is a powerful testament to the growing synergy between China and Malaysia in building a greener economy together and represents an important initiative for Xiamen C&D Group in the pulp and paper sector. By integrating NIP’s strength in palm biomass sourcing and processing innovation, together with our robust distribution network, this partnership lays the foundation for a more sustainable pulp and paper supply chain, as well as a more integrated regional economy.

Backed by the strong support from the Malaysian government, and strategically located within the ECER Special Economic Zone, the 410-acre GTP is set to emerge as a regional hub for green manufacturing and bio-industrial activity. This is beyond an investment in infrastructure, it serves as a blueprint for ESG-centric development.

We are committed to promote and advance the development of environmentally friendly pulp production facilities, which will be a critical catalyst in realising the GTP masterplan and advancing both nations’ ambitions in sustainable economic development.”