S'pore, Malaysian firms to tie up

S'pore, Malaysian firms to tie up

SINGAPORE (AFP): Singapore-based Asia Pulp and Paper Co. Ltd. (APP) said yesterday that it had formed a joint venture with a Malaysian partner to set up a US$714 million integrated pulp and paper mill.

APP said it was joining forces with Sarawak Timber Industry Development Corp., a government-owned agency, to set up the mill in the Malaysian state of Sarawak.

The project, with an initial annual production capacity of 500,000 tons of pulp projected to eventually double, will be executed by Borneo Pulp and Paper Sdn. Bhd, a joint venture company formed by the two partners.

It will be equipped with the latest technology in pulp and paper production with "environmental measures consistent with international standards," an APP press statement here said.

"This will ensure 100 percent environmentally-friendly manufacturing procedures that are in line with APP's high standards of pollution controls and environmental safety," the statement added.

APP said the project was in line with its overall strategy to expand its operations in the Asia-Pacific region, particularly countries such as China, India and Malaysia.

"This gives the company the ability to take advantage of the opportunities available and market its products directly in the high growth economies of the region," it said.

APP, a leading pulp and paper company with assets of US$5.5 billion and annual sales of about two billion dollars, is focussed on meeting the growing paper needs of Asia.

It has 13 manufacturing facilities in Indonesia, China and India and markets its products in more than 40 countries.