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NEWS ADMIN

DATE

09/11/2018

NEWS PROVIDER

Nur Aisha Abd. Wahab

NEWS SOURCE

The Star Online

CATEGORY

HEADLINE

Nextgreen and two Japanese firms to invest in palm oil venture

The Star Online (09/11/2018) - KUALA LUMPUR: Printing and publishing company Nextgreen Global Bhd is co-investing around RM700mil with two listed Japanese firms to utilise palm oil industry waste and biomass for the development of the second phase of the Green Technology Park in Pekan, Pahang.

The RM2bil green technology park (GTP) is currently being built on an area of 410 acres comprising of five phases.

Yesterday, Nextgreen signed a memorandum of understanding (MoU) with Tokoyo Stock Exchange-listed heavy industry manufacturer IHI Corporation and Nomura Holdings to evaluate the business structure, source of funding and the combined technologies of both IHI and Nextgreen for the second phase.

Nextgreen managing director Datuk Lim Thiam Huat said the funding for the second phase (2a and 2b) was likely to be raised from either bonds or loans, mainly from Japan.

These will finalised during the feasibility study stage.

“The feasibility study which will be finalised by March next year will help decide the best way to raise funds for the second phase of the green technology park,” he told reporters during a press conference. Nomura Holdings, the financial services group, is understood to help raise funds for the second phase of GTP.

Following the MoU, the construction of the second phase is expected to start by March next year with a completion target of within two years.

Under Phase 1, Nextgreen is building a pulp and paper mill with an annual production capacity of 10,000 tonnes, slated to finish construction by May in 2019.

Meanwhile, Lim said the Japanese partners were looking at equity partnership for the project, with Nextgreen holding a majority share. The equity partnership will be finalised during the feasibility study stage.

For Phase 2, he revealed that Japan’s IHI Corp would contribute around 60% of its renewable energy technologies, while Nextgreen will deploy its proprietary technology of converting empty fruit bunch (EFB) into pulp and paper.

Read more at https://www.thestar.com.my/business/business-news/2018/11/09/nextgreen-and-two-japanese-firms-to-invest-in-palm-oil-venture/#ctRrR3GVy0DUKIJv.99