Malaysia

Malaysia's largest palm oil producer FGV Holdings Bhd and the Hong Kong listed company China Machinery Engineering Corporation (CMEC) signed a memorandum of understanding (MoU) to explore the feasibility of jointly establishing a pulp production plant.

    CMEC participates in project contracting. It also cooperates with research institutions in Hangzhou and Guangxi to use technology to convert empty fruit bunches (EFB) into pulp for commercial use.

    FGV Generation Group President and Chief Executive Officer Datuk Wira Azhar Abdul Hamid said that FGV hopes to explore opportunities to combine existing plant operations with CMEC’s engineering expertise to establish the first phase of pulp production with an initial capacity of 50,000 metric tons per year. plant.

    He pointed out that FGV can also use CMEC's extensive engineering and domestic knowledge in the Chinese pulp market. However, FGV did not disclose the location of its pulp production plant.

    Azhar issued a statement saying: "In view of the unstable price of crude palm oil, this move is in line with FGV's strategy of focusing on downstream activities to ensure that the company makes full use of the by-products of its existing business to create value for the group."

    FGV has 68 factories nationwide, producing approximately 3.47 million tons of empty fruit bunches every year.

    Azhar continued: "The public's awareness of the use of green and sustainable products such as pulp is increasing every year. This is the huge commercial potential that FGV is exploring because we use a large amount of raw material resources to gain a competitive advantage."