FGV terminates paper pulp plant MoU with CMEC

PETALING JAYA: FGV Holdings Bhd has terminated its memorandum of understanding (MoU) with Hong Kong-listed China Machinery Engineering Corp (CMEC) to jointly establish paper pulp production facilities using empty fruit bunch.

The plantation group did not give any reason for the termination.

In its filings with Bursa Malaysia, FGV stated that the termination of the MoU would not have any financial impact on the company and its subsidiaries.

The MoU with CMEC was signed by FGV on Dec 18, 2018, with the purpose of exploring the feasibility of a joint venture to develop paper pulp production facilities.

FGV interim group president and chief executive officer Datuk Wira Azhar Abdul Hamid had then said the group hoped to explore the opportunity to integrate the operations of its existing mills with CMEC’s engineering expertise, to establish the paper pulp production facilities with an initial capacity of 50,000 tonnes per annum for the first phase via the MoU. In addition, he said the tie-up could enable FGV to leverage on CMEC’s extensive engineering and domestic knowledge on China’s pulp market.

Source: TheStar