FGV Holdings Berhad (FGV) has signed a Memorandum of Understanding (MoU) with the China Machinery Engineering Corporation (CMEC) with the aim to explore the feasibility of a joint venture or other collaborations that primarily involves the establishment of paper pulp production facilities, as well as the potential distribution and commercialisation of the paper pulp business to the global market.
FGV’s Interim Group President and CEO, Datuk Wira Azhar Abdul Hamid said: “FGV produces approximately 3.47 million tonnes of EFB per year from its 68 mills all over Malaysia. This green project also aligns with our waste to wealth initiative in order to ensure
the operations are more sustainable.
“With this MoU, FGV hopes to explore the opportunity to integrate the operations of its existing mills with CMEC’s engineering expertise, to establish the paper pulp production facilities with an initial capacity of 50,000 MT per annum (1st phase). Furthermore, FGV can leverage on CMEC’s extensive engineering and domestic knowledge on China’s pulp market,” he said.
CMEC’s core business is engineering contracting, specialising in the construction of power projects, trading, investment, R&D and international services. CMEC also collaborates with research institutes in Hangzhou and Guangxi, using technology to convert empty fruit bunches (EFB) into paper pulp for commercialisation.
