China’s largest paper, paperboard producer to invest RM5.4bil in Malaysia
02 Mar 2021
KUALA LUMPUR: China’s Nine Dragons Paper (Holdings) Ltd, a major paper and paperboard producers in Asia, is investing RM5.4 billion in Malaysia to buy and expand two pulp and paper mills in Pahang and Selangor.
The group’s investments in Malaysia consists of two manufacturing facilities, namely ND Paper (Malaysia) Sdn Bhd in Bentong, Pahang involving the acquisition of an existing pulp and paper mill with total investment value of RM1.2 billion.
The other acquisition is ND Paper Malaysia (Selangor) Sdn Bhd in Banting, Selangor with investment value of RM4.2 billion that will focus on test liner, kraft liner, corrugated medium paper, paper and pulp.
These projects will create a total of 2,180 job opportunities of which, nearly 90 per cent will be Malaysians.
The project in Banting, Selangor is expected to be in operation by 2022.
Prime Minister Tan Sri Muhyiddin Yassin said Nine Dragons Paper is listed on the Hong Kong Stock Exchange’s main board and currently ranked first in China Fortune 500 list under the sector of paper, printing and packaging companies.
The group owns facilities in China, Vietnam and the United States with an annual production capacity of more than 18.4 million tonnes and valued at more than 60 billion Renminbi (RMB).
“The group also boast a total workforce of approximately 19,000 people.
“We are confident that Nine Dragons Paper being a China Fortune 500 company will be an endorsement for Malaysia as a preferred investment destination,” he said.
Nine Dragons Paper chairlady Cheung Yan said the investment environment in Malaysia is attractive with the country’s strategic location and infrastructure.
Cheung said Malaysia’s business friendly policies such as the One Stop Centre (OSC) for Business Travellers initiative of
managed by MIDA to ease travel for businesses further strengthened the company’s confidence in investing here.
“I am very grateful to make this investment decision based on these fundamentals. We believe governments and enterprises need to mutually support and collaborate with each other,” she said.
Muhyiddin reiterated that the government’s policy is always pro-business and very supportive and ready to offer attractive incentives to investors.
To ensure Malaysia remains steady on the path of economic recovery and growth, the government, through MIDA, set up the OSC in October 2, 2020.
This initiative eases the movement of short term and long term business travellers by expediting their entry to do business in Malaysia through a dedicated committee represented by Ministry of International Trade and Industry (MITI), MIDA, Ministry of Health (MOH) and Immigration Department of Malaysia (IMI).
This committee meets daily to ensure the legitimacy and health status of business travellers before they enter into Malaysia.
Decisions are made within three working days for each applicant upon receiving complete information.