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World's First Oil Palm-Based PulpPaper Mill in  Kunak, Malaysia



| About Kunak District |

Two Indian firms Ballarpur Industries and Punj Llyoyd Ltd had already invested in Sabah.

1) Ballarpur Industries is Sabah sole pulp and paper manufacturer Sabah Forest Industries

2) Punj Lloyd was involved in building the Kimanis-Bintulu pipeline.

About 1,000 Indian nationals working on the pipeline project engineers as well as (general) workers.

The Star Online > Nation
Monday November 24, 2008

Tawau mill to produce quality paper from oil palm bunches


PETALING JAYA: The world’s first oil palm-based pulp and paper mill is expected to start operations in Tawau by the third quarter of next year.

Using technology researched by the Forest Research Institute of Malaysia (FRIM), the mill will produce pulp and paper from empty fruit bunches, oil palm bunches where the fruits have been removed.

FRIM director-general Datuk Dr Abd Latif Mohmod said the mill would be capable of producing high quality A4 paper for export and local use. The paper would be produced by a private company.

Dr Abd Latif said it was an industry with a potential earnings of RM2bil annually.

“It will not only allow us to save hardwood trees from being cut down for paper but also on foreign exchange as Malaysia imports a lot of its paper from overseas.

“It is a perfect example of waste to wealth,” he said in an interview.

It is understood that five tonnes of empty fruit bunches would produce one tonne of pulp. Some 30 million tonnes of empty fruit bunches are generated annually.

Dr Abd Latif said oil millers would be paid RM30 per tonne for the bunches whereas the current market rate of pulp is between US$600 (RM2,160) and US$700 (RM2,520).

FRIM forest products division senior director Dr Mohd Nor Mohd Yusoff said the Government had invested about RM35mil for the project that was supposed to have taken off in 2005.

“There were some technical delays but now everything has been sorted out. The factory will have all operations under one roof — from shredding the empty fruit bunches, pulping and producing paper,” he said.

Dr Abd Latif said this particular project was one example of the potential available in commercialising FRIM’s research.

He has invited stakeholders and clients to come to FRIM so they could learn about its research findings during a Technology Transfer Forum on Nov 25 and 26. Check for further details on the forum.

© 1995-2009 Star Publications (Malaysia) Bhd (Co No 10894-D)

RSPO certified plantation companies
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At this moment there are 10 oil palm plantation companies get CSPO certification from RSPO.

- United Plantations Bhd (Malaysia)
- Kulim Bhd (Malaysia)
- Sime Darby Bhd (Malaysia)
- Perlis Plantations Bhd (Malaysia)
- IOI Corp Bhd (Malaysia)
- Kuala Lumpur Kepong Bhd (Malaysia)
- PT Musim Mas (Indonesia)
- PT Hindoli (Indonesia)
- New Britain Palm Oil (Papua New Guinea)
- Hargy Palm Oil (Papua New Guinea)

Sarawak Will Have Biggest Oil Palm Area Under Felcra By 2010
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25/05/2009 (Bernama), Kuching - Felcra will develop another 11,000 hectares of land in Sarawak for oil palm cultivation by 2010, its chairman Datuk Tajuddin Abdul Rahman said here today.

With the completion of the project, he said, Felcra Berhad would have developed 55,000ha for oil palm, the biggest for Felcra as this made up 36 per cent of the total area in the country developed by the agency for oil palm, compared to 52,000ha in Pahang currently.

"We see that Sarawak still has a lot of land banks with the potential of being developed into oil palm plantations compared to the peninsula, and this will also help the government develop its (Sarawak) rural areas," he said after attending a briefing at Felcra's Sarawak office.

Tajuddin said 44,000ha of land in Sarawak had so far been developed by Felcra, out of which 22,000ha had started producing.

He said the three new areas to have agropolitan projects would be Batang Sadong, Batang Lupar and Pulau Beruit, involving 6,534ha and 3,700 participants altogether.

Besides that, he added, Felcra would also set up two people's estates, involving 4,571ha, this year.

"Felcra's current focus is on economic, physical and human capital development as part of efforts to overcome the effects of the global economic slowdown."

Felcra now has some 94,000 project participants, including 5,544 in Sarawak, with accumulated dividends given out amounting to RM3.5 billion of which RM72 million went to the participants in Sarawak.

Tajuddin said Felcra was also working at attracting more participants and encouraging their family members to work in the oil palm estates developed by Felcra so as to reduce the country's dependence on foreign labour for work, such as harvesting the oil palm fruits.

He said Felcra was now hiring 20,000 people for plantation work, including 8,000 foreigners whom it aimed to reduce to 4,000.







Proposed Intergrated Pulp & Paper Mill at Kunak, Tawau, Sabah, Malaysia


Eko Pulp & Paper Sdn Bhd


Chemsain Konsultant Sdn Bhd


Location : Kunak Town, Tawau Region in Sabah

Memorandum of Understanding

A Memorandum of Understanding signing between the Forest Research Institute Malaysia (FRIM) and Borneo Advance Pulp and Paper Sdn. Bhd. for the setting up of the world's first oil palm-based pulp and paper mill in  Sabah was witnessed by Minister of Primary Industries, Dato' Seri Dr. Lim Keng Yaik on 30 March 2003

Investors :

Forest Research Institute Malaysia (FRIM)
Director-General Dato' Dr. Abdul Razak Mohd. Ali
FRIM will provide the scientific and technical know-how to Borneo Advance

Borneo Advance Pulp and Paper Sdn. Bhd.
Chairman Dato' Jaswant Singh Kler.
responsible for pulp production, its co-products and other commercial aspects of the business
(joint-venture between TSH Resources Bhd and Lembaga Tabung Haji)

TSH biomass project is in Tawau, Sabah, which generates 14MW. The second plant in Ipoh generate between 8MW and 8.5MW, of which TSH will use 4MW and sell the remaining MW output to Tenaga.

Malaysian Government
Government investing an additional RM20 million in this project.

The Project

Cost : RM40 million               Capacity : 25,000 tones of pulp a year

Production Technology :

FRIM and Borneo Advance will jointly develop a new pulping method using empty fruit bunches (EFB). The method will use caustics soda technology, developed by FRIM since 1998, to convert EFB into pulp and its co-products.

The Production Plant

The integrated plant will consist of :
1) the pulp plant
2)  biomass co-generation plant
3)  palm oil mill effluent energy plant
4) an oil palm mill.

The plant is designed to use industrial wastes from the palm oil industry such as EFB and palm oil effluent to produce useful resources such as pulp, electricity and industrial steam.

Palm Oil EFB Fibre is a raw materials similar to wood base fibre which can be used to produce paper pulp, MDF board & particle board


Resource :

Malaysia each year has 30 million tones of EFB from 351 oil palm mills throughout the country.

Economy impact : US$1.5 billion a year

Five tones of EFB could produce a tone of pulp. Assuming that 50% of EFB is available for pulp production, Malaysia has the potential to produce three million tones of pulp per year from EFB alone.

Based on the current pulp price of around US$500 a tone, the value produced could be around US$1.5 billion a year.

Industry Progress in Malaysia general :

8 Palm Oil millers now have shredding machine to turn and digest EFB into pulp.

4 companies in Malaysia now are capable of manufacturing the shredding machines to extract the fibers from the EFB for the production of pulp

19 paper and paper products manufacturing companies in Malaysia, including an integrated pulp and paper mill, which is Sabah Forest Industries.

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