Alor Setar, Kedah, January 22, 2020 – Kedah has strengthen its position in the development of the green technology paper industry with the signing of an investment agreement worth RM1.6 Billion between Zhejiang Element Holding Co., Ltd. with Invest Kedah Berhad.
The MoU that held at Wisma Darul Aman involved two major agreements, which is between Zhejiang Element Holding Co., Ltd and Invest Kedah Berhad and the second agreement between Zhejiang Element Holding and Genting Ehsan (SP) Sdn Bhd.
The first agreement that between Invest Kedah Berhad and Zhejiang Element Holding Co., Ltd involving three forms of investment namely the development of wood flooring factory by Zhejiang Yuhua Timber Co., Ltd., the development of a green technology paper factory by Zhejiang Element Holding Co., Ltd. and the third investment involves cooperation with the State Government of Kedah on the timber and forestry industry including bringing modern technology to the eucalyptus species planting and processing sector and establishing a new ecological industry chain in the State of Kedah.
For the paper mill, the daily production capacity is 1.3 million tonnes and will involve three phases of development. The first phase of production involves the production of 400,000 tons of craft liner board. The second phase is the production of craft liner board with a capacity of 300,000 tonnes and the production of wood pulp of 300,000 tonnes. The third phase involves the production of special paper with a capacity of 300,000 tonnes.
The project, which will be developed in the Bukit Selambau Industrial Area, Kuala Muda District, will open up opportunities for technology transfer to local companies in eucalyptus breeding, cultivation and processing which will enable the creation of new ecological networks for the industry in Kedah.
The signing ceremony was witnessed by the Honorable Dato ‘Seri Seri Mukhriz Tun Mahathir, Kedah Chief Minister and Honorable Sr Tan Kok Yew, Member of the Kedah State Government Council (Chairman of the Standing Committee on Industry and Investment). The agreement was signed by Mr. Zafir Annuar B. Ghazali, Senior General Manager of Invest Kedah Berhad while Zhejiang Element Holding Co., Ltd., was represented by its President, Mr. Jin Yeuhua.
For record, Invest Kedah, a subsidiary of the Kedah Menteri Besar Corporation (Menteri Besar Incorporated), is the leading investment agency in the state of Kedah and is the main investment gateway in the State of Kedah. In 2019, the Kedah State Government has successfully secured a total investment of RM7.804 Billion and has made the state of Kedah as a popular destination among local and international investors.
With the signing of the MoU, Invest Kedah will act as facilitator in helping Zhejiang Element Holding Co., Ltd. to realize its investment in the State of Kedah. The high-impact project will involve investment cooperation between Zhejiang Element Holding Co., Ltd. with its strategic partners United Overseas Bank (UOB), Yuhua Timber Co., Ltd., and Genting Ehsan (SP) Sdn. Bhd.
The project is expected to contribute to an annual expenditure of more than RM 1 billion and an annual tax of over RM 6 million. In addition, the project will create more than 600 job opportunities that will benefit the local community.