Eco Palm Paper Sdn Bhd, a recycling based company, expects to invest RM820 million to set up a three-phase corrugated paper plant in Pekan, Pahang.
Managing Director Larry Yong said the company expects to see an annual revenue of RM875 million once the plant is fully completed by 2017.
"First phase of the plant will be completed in 2013 and 50,000 metric tonnes of paper will be produced annually," Yong told reporters before a contract signing ceremony with Jiangsu Jinwo Machinery Co Ltd here today. Berjaya Corp Bhd is the major shareholder of Eco Palm.
On the market for corrugated paper, Yong said it was expected to do well as it was an emerging market segment as there was a large demand for paper made from palm fiber.
He said among the major markets for the paper included Austalia, Japan and Europe, where the environmental regulations in the packaging industry were becoming more strict.
On the contract with Jiangsu Jinwo, he said Eco Palm signed the contract for RM65 million for them to design, manufacture and commission the corrugated paper plant.
He also said the plant, once completed, will raise the profile of Pekan as a production centre for tree-free paper while providing employment and training opportunities for the locals.
"It will also help reduce the depletion of natural resources and at the same time provide a clean solution for the disposal of palm oil by-products as approximately 18 million metric tonnes of empty fruit brunches are produced annually in Malaysia," he added.
Yong represented Eco Palm at the signing ceremony today while Jiangsu Jinwo was represented by its general manager, Fan Ganghua.
The event was witnessed by Pahang Menteri Besar Datuk Seri Adnan Yaakob and Berjaya Corp Bhd Chairman Tan Sri Vincent Tan.
In his speech earlier, Tan said the decision to invest in the project was influenced by the urgent need to move away from the traditional paper production process that uses wood based pulp.
"One of the major issues faced by the global pulp and paper industry is the diminishing supply of wood based pulp and the negative environmental effects of deforestation.
"It is therefore timely for Eco Palm to be able to fill the supply gap left by years of tree harvesting and at the same time help conserve our natural resources and environment," he said. -- Bernama
Managing Director Larry Yong said the company expects to see an annual revenue of RM875 million once the plant is fully completed by 2017.
"First phase of the plant will be completed in 2013 and 50,000 metric tonnes of paper will be produced annually," Yong told reporters before a contract signing ceremony with Jiangsu Jinwo Machinery Co Ltd here today. Berjaya Corp Bhd is the major shareholder of Eco Palm.
On the market for corrugated paper, Yong said it was expected to do well as it was an emerging market segment as there was a large demand for paper made from palm fiber.
He said among the major markets for the paper included Austalia, Japan and Europe, where the environmental regulations in the packaging industry were becoming more strict.
On the contract with Jiangsu Jinwo, he said Eco Palm signed the contract for RM65 million for them to design, manufacture and commission the corrugated paper plant.
He also said the plant, once completed, will raise the profile of Pekan as a production centre for tree-free paper while providing employment and training opportunities for the locals.
"It will also help reduce the depletion of natural resources and at the same time provide a clean solution for the disposal of palm oil by-products as approximately 18 million metric tonnes of empty fruit brunches are produced annually in Malaysia," he added.
Yong represented Eco Palm at the signing ceremony today while Jiangsu Jinwo was represented by its general manager, Fan Ganghua.
The event was witnessed by Pahang Menteri Besar Datuk Seri Adnan Yaakob and Berjaya Corp Bhd Chairman Tan Sri Vincent Tan.
In his speech earlier, Tan said the decision to invest in the project was influenced by the urgent need to move away from the traditional paper production process that uses wood based pulp.
"One of the major issues faced by the global pulp and paper industry is the diminishing supply of wood based pulp and the negative environmental effects of deforestation.
"It is therefore timely for Eco Palm to be able to fill the supply gap left by years of tree harvesting and at the same time help conserve our natural resources and environment," he said. -- Bernama
