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.