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Paloh Hinai To Get Oil Palm-based Pulp And Paper Mill
calendar21-03-2016 | linkBernama | Share This Post:

21/03/2016 (Bernama) - BHS Industries Bhd (BHS), a printing and publication-based company, will invest RM50 million to build the country's first oil palm-based pulp and paper mill here.

Chairman Datuk Sohaimi Shahadan said construction of the mill at the Green Technology Park (GTP) in Paloh Hinai is expected to begin in April with completion slated for the first quarter of next year.

When completed, the plant on 10 ha. of land approved by the state government is expected to create 200 to 300 jobs for local residents including Orang Asli, he told reporters after the launch of the GTP here Saturday by Prime Minister Datuk Seri Najib Tun Razak.

Also present were Menteri Besar Datuk Seri Adnan Yaakob, Deputy International Trade and Industry Minister Datuk Lee Chee Leong and BHS Managing Director Datuk Lim Thiam Huat.

Sohaimi said the mill, using technology jointly developed by a Chinese company and patented in Malaysia, marks the first phase of the 151 ha. GTP.

The park, to be developed over eight years with an investment of RM1.5 billion, is expected to create some 5,000 jobs.

Besides the mill, the park will also have tissue and livestock feed plants using oil palm wastes, as well as a research centre and staff quarters.

"The GTP will accelerate development in Paloh Hinai and provide business opportunities for residents in surrounding areas.

"We will also establish collaborations with local universities for their students to undergo practical training at BHS-owned mills," he said.

Sohaimi said Paloh Hinai was chosen to host the GTP for its strategic location about 80 km. from Kuantan Port and for its good road system.

"Paloh Hinai is also near Felda Chini in Pekan, where there are some 40 palm oil mills, making it easier for us to obtain the basic materials, and we will work with Felda to find a way of involving settlers in future projects," he said.

Meanwhile, Lim said the factory will be using a patented Malaysian-owned technology called Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (PRC-RBMP) which will provide Malaysia with an alternative source of local paper.

"Using this new proprietary green technology, we can save over 200 million trees which are currently being cut down every year for paper pulp production.

"There are an estimated 440 palm oil mills in Malaysia generating 20 million tonnes of empty fruit bunches (EFB) per annum, and they are facing a major challenge in disposing of it," he said.

Lim said the new plant will create abundant alternative raw materials for the printing and publishing industry while simultaneously transforming EFB into a saleable commodity for the palm oil industry.

For a start, the paper produced at the plant will be used by BHS as the company is primarily involved in the printing and publishing industry, he added.