Nine Dragons planning massive increase in capacity at existing Malaysia paper mill

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Nine Dragons Paper mill
A Nine Dragons recycled paper mill

An application to drastically increase the capacity of its existing Malaysia paper mill has been made by Chinese company Nine Dragons Paper.

Currently, the mill at Pahang produces 80,000 tonnes per year of paperboard and coated duplex board, but Nine Dragons wants to increase capacity to 900,000 tonnes per year.

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In the first phase, the existing PM1 machine will produce 80,000 tonnes of core board, while a new PM2 line will produce 380,000 tonnes of recycled pulp.

The second phase will see PM1 expanded to 120,000 tonnes per year of core board production, while a further PM3 machine will add 400,000 tonnes to increase total recycled pulp manufacture to 780,000 tonnes from both machines.

Nine Dragons has applied to the Malaysian Government for permission for the expansion up to 900,000 tonnes total capacity in the first two phases.

However, it also outlined plans to eventually increase capacity to 1.92 million tonnes comprised of 600,000 coated duplex board, 120,000 tonnes of core board and 1.2 million tonnes of recycled pulp. This would require permission from Malaysian authorities at a later date.

Finished product would be expected to “support the operation in China and produce higher value products in the Asia Pacific region”.

Raw material to produce the core board and recycled pulp would be sourced from the USA, Europe, Japan and Australia. These countries would comprise 90% of the feedstock with a further 10% coming from Malaysia.

By the time the second phase is completed, approximately 1.02 million tonnes of recovered fibre per year will be required.

The commodity codes outlined in the application are that it would import OCC (470710), pulp (470720) and news & pam (470730).

It will be shipped to Port Klang, Penang Port or Port of Tanjung Pelepas/Pasir Gudang from the countries of origin.

Nine Dragons purchased this mill in August 2019 when it bought Singa Trading.

The company also outlined plans in October to build another mill in Malaysia that will source 2.2 million tonnes of raw materials.

Nine Dragons sources material from ACN including in the UK.

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