China’s Zhejiang XSD to invest RM1.2 Billion in Kedah

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26 August 2019

China-based Zhejiang XSD Holdings Group Co. Ltd.’s ambitious plan to develop a green paper industry park in Malaysia, which is expected to bring in investments amounting to RM1.2 billion has started.

The memorandum of understanding (MoU) between Invest Kedah Berhad and Zhejiang XinShengDa Holding Group Co. Ltd, (Zhejiang XSD) was signed on 29 November 2018.

This collaboration was further strengthened when Prime Minister Tun Dr Mahathir Mohamad visited China last August. Signing on behalf of Invest Kedah was its Senior General Manager, Encik Zafir Anuar Ghazali, while Zhejiang XSD was represented by its President Mr. Shengfeng Lee.

The MoU allowed Invest Kedah to facilitate, promote and assist Zhejiang XSD in the development of green paper industry that will be carried out on a 300-acre land in Padang Meha, Kulim.

Following the MoU, Zhejiang XSD also signed a sale and purchase agreement for the 300 acres of land with Sime Darby Property Berhad. Mr. Shenfeng Lee once again signed on behalf of XSD International Paper Sdn. Bhd. the locally incorporated entity of Zhejiang XSD, while Sime Darby Property was represented by its Group Managing Director Dato’ Sri Amrin Awaluddin.

The signing ceremony was witnessed by Kedah Menteri Besar, YAB Dato’ Seri Haji Mukhriz Tun Mahathir and state Industry, Investment and Local Government Committee chairman YB Tan Kok Yew. Kedah Menteri Besar, Datuk Seri Mukhriz said the project marks a further strengthening of the bilateral relationship between Malaysia and China.

“The project in Padang Meha, Kulim will spur the economic growth in the area and provide 1,300 job opportunities to the locals. We also believe that the investment will continue to increase China’s investors’ confidence in the state,” he said.

According to Mr. Lee, Zhejiang XSD’s investment will contribute an annual output of RM1.8 billion, while generating RM1.5 billion through the export of products. This will also create a disruption effect by driving the development of all related paper making in the region and even throughout Malaysia. In addition, the company also plans to cooperate with a local technical university to further improve the paper making skills here in Malaysia. The investment by XSD International Paper is projected to drive the development of all related papermaking in the region.

Bird-Eye View: Phase 1 of the Green Paper Industrial Park sits on the 100-acre site at Kulim, Kedah

Phase 1 which sits on the 100-acre site consists of two major zones, namely Industrial Zone and Residential Zone. The Industrial Zone will house the complete paper manufacturing chained facilities from raw material warehouse, pulping workshop, stock preparation workshop, paper making workshop to finished product warehouse. The Residential Zone will house offices, staff quarters, restaurants, recreational and sports facilities, making it a self-sustainable community. Phase 1 is expected to be completed and commissioned by end 2020.

We are proud to be associated with this green industrial project, providing our professional quantity surveying and cost management services to XSD International Paper.

About Zhejiang XSD Holding Group Co., Ltd

Zhejiang XSD Holding Group Co., Ltd is located at Chunjiang functional area Hangzhou Fuyang - the hometown of duplex coated paper in China. Zhejiang XSD has acquired 12 paper manufacturing companies and held 7 enterprises in China since 2015 in the promotion of the paper making industry. Their main industrial products include duplex coated paper and corrugated paper with different types and sizes, which they claimed to be one of the best surface coating in the world, with the benefits of good surface smoothness, stable in absorb-ability, low surface roughness and rich printing dots which contributes to excellent printing results. They supply to customers worldwide including Middle East, Southeast Asia and South America. The Group currently has a production capacity of more than 130 tons annually with 11 production lines.