FGV and CMEC explore potential investment project to make pulp from empty fruit bunches

摘要

FGV Holdings Berhad (FGV) and China Machinery Engineering Corporation (CMEC) are jointly exploring the possibility of constructing a new pulp mill in Malaysia. To this end the two companies signed a memorandum of understanding (MoU), which could lead to the foundation of a joint venture or to another form of cooperation. According to the MoU, the companies are exploring the establishment of paper pulp production facilities and the opportunities for the global distribution and commercialisation of the paper pulp produced. Palm residues and empty fruit bunches could be used as raw materials, among others.The paper pulp would primarily be sold to customers in China. In a first stage a plant could be constructed with an initial capacity of 50,000 tpy of pulp.