This follows the signing of a Memorandum of Understanding (MoU) between the company, together with its strategic partner Genting Ehsan (SP) Sdn Bhd, and the State Government's leading investment arm, Invest Kedah Bhd, here today.
Invest Kedah will act as a facilitator in helping Zhejiang Element and Genting Ehsan (SP) to realise their investment in the state.
Menteri Besar Datuk Seri Mukhriz Tun Mahathir said the agreement inked between Zhejiang Element and Invest Kedah involved three forms of investment, namely the development of a wood flooring factory and a green technology paper industry by the Chinese company, and the cooperation with the Kedah government in the timber and forestry industry.
The cooperation involved bringing modern technology to the eucalyptus species planting and processing sector and establishing a new ecological industry chain in Kedah, he said.
“For the first investment of RM150 million, Zhejiang Element's subsidiary Yunhua Timber Co Ltd is developing a wood flooring facility in the Bukit Selambau Industrial Area, Sungai Petani. Construction is 80 per cent complete and the factory is expected to be operational in a few months,” Mukhriz told a media conference at Wisma Darul Aman here today.
Earlier, he witnessed the MoU signing ceremony with Tan Kok Yew, chairman of the state gov
Mukhriz said Zhejiang Element's second investment, amounting to RM1.6 billion over three phases, would be to develop a mill to produce green technology paper with a daily production capacity of 1.3 million tonnes.
Under the first phase, the facility will be able to produce 400,000 tonnes of craft liner board daily. The next phase will see the craft liner board production capacity rising by another 300,000 tonnes as well as the production of 300,000 tonnes of wood pulp daily. The last phase involves the production of special paper with a daily capacity of 300,000 tonnes.
On the eucalyptus cultivation to supply raw materials to the mill, Mukhriz said at present, the trees were planted in Cameron Highlands, Pahang.
Meanwhile, he said according to the Malaysian Investment Development Authority, Kedah attracted RM7.8 billion in approved investments in the manufacturing sector between January and September last year, the third highest after Penang and Selangor.