More Paper Mills In Sarawak Soon
11/11/97
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Headline: More Paper Mills In Sarawak Soon
Source: The Star Tribune
Date: 11/11/97
Author: Jack Wong
Copyright 1997: Star Publications
KUCHING: Malaysia is expected to become an exporter of pulp and
paper products by the year 2000 when at least six integrated pulp
and paper mills are in operation.
These mills would have a combined production capacity of 3.0
million tonnes per year by then, said Primary Industries
Minister Datuk Seri Dr Lim Keng Yaik.
He said the country, currently a net importer, bought about
RM2.4bil worth of pulp and paper products annually from abroad.
"With consumption of paper products predicted to increase, the
gap between local production and consumption is expected to
widen further unless we take steps to meet the shortfall," he
said at the opening of a two-day international pulp and paper
conference in Kuching yesterday.
Sarawak Chief Minister Tan Sri Abdul Taib opened the event,
jointly organised by the Sarawak Timber Industry Development
Corp, Forest Research Institute of Malaysia and the Australia
and New Zealand Pulp and Paper Industry and Technical
Association.
Lim said these integrated mills would be able to broaden their
production grades by introducing new products like office paper,
soft packaging and white paper board.
He said the country welcomed foreign investments for the
development of the pulp and paper industry as its priority was
to become self-sufficient.
Lim said that any potential joint-venture investments in the
pulp and paper industry would likely go to Sarawak as the state
had vast land to support the mills.
He said between RM3mil and RM4mil was needed to set up a pulp
and paper mill that had a production capacity of between 500,000
and 1.0 million tonnes per annum.
"Currently we have 18 mills but only one in Sabah produces its
own pulp while the rest rely on recycled paper and some virgin
pulp imports," he added.
Lim said Malaysia was pushing ahead with its forest plantation
programmes to ensure supply of raw materials for not only the
pulp industry but also other wood processing industries.
So far, Sabah has established about 170,000ha of forest
plantations.
He said close cooperation and joint ventures between companies
in Asean and other countries in the Asia-Pacific region,
including China, South Korea, India and Japan, would strengthen
the region's capability as a major player in the world trade in
pulp and paper products.
Asia-Pacific countries accounted for 34.2% of the world's
consumption of paper and paper products last year, and this is
expected to increase to half of the world's consumption by the
year 2013.
The region produced 85.3 million tonnes of paper and paper
products or 30.2% of the world's total last year, up from 25.1%
in 1990.
Lim said a new pulp and paper mill would be set up in Pahang to
use oil palm fibre to produce high quality newsprint and coated,
glossy and computer paper.
"The oil palm sector in Malaysia generates annually about 13
million tonnes of residues. Such an immense source of biomass
can be a source of fibre for the pulp and paper industry."