Cycle Link owner Shanying Paper set to build recycled paper mill in Malaysia

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Shanying recycled paper mill
A Shanying recycled paper mill in China

China’s Shanying Paper has signed a memorandum of understanding (MoU) that should lead to it building a recycled paper mill in Malaysia.

Its company Shanying International Holdings has signed the MoU with Sarawak Economic Development Corporation (SEDC), which promotes economic growth in Malaysia’s largest state.

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Shanying Paper’s mills in China are supplied by Cycle Link International, including from its UK subsidiary.

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The pulp and paper plant would be situated in the city of Bintulu and would have a production capacity of 2 million tonnes per annum. Bintulu has its own container port, as the mill would be fed with imported recycled paper.

At a cost of $1.8 billion (£1.4 billion), the fully automated facility will be built in two stages. Phase 1 will commence in 2020 and is planned to be in operation by 2023. Phase 2 will then begin once the first phase is operational.

The MoU was signed by Shanying Paper chairman Wu Mingwu and SEDC chairman Tan Sri Datuk Ama in China.

Sarawak chief minister Abang Johari observed the signing. He said:
“This project is a value-added industry based on imported recycled paper without having to exploit our natural resources with clean, safe and environment friendly technology that uses our renewable energy from hydroelectric infrastructure.

“There will always be demand for high quality paper for printouts and packaging for products bought through online shopping.”

Cycle Link bought Dutch paper company WPT last year. Shanying also purchased and reopened a paper mill in west Kentucky, USA in August.

This is the latest announcement of major investment outside of China by Chinese mill groups.

Nine Dragons Paper, which is supplied by ACN from the UK, has recently revealed plans for a new mill in India. It also purchased two mills in USA. It also has a mill in Vietnam.

While Lee & Man, which is supplied by Winfibre from the UK, already has a mill in Vietnam. It is planning on building another new mill in Vietnam as well as investigating a mill in Myanmar. The company, like Shanying Paper, has announced plans for a mill in Malaysia.

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