ALOR STAR: China-based Zhejiang XSD Holding Group Co Ltd plans to develop a green paper industry park in Malaysia, which is expected to bring in investments amounting to RM1.2 billion.

The park will be developed on a 300-acre site in Padang Meha, Kulim.

The project is expected to generate economic growth in the area and provide 1,300 jobs to locals.

Zheijang XSD, which produces coated duplex boards for the Southeast Asian and Middle East markets, has inked a memorandum of understanding (MoU) with Invest Kedah Bhd for the project. The MoU was signed by Invest Kedah senior general manager Zafir Anuar Ghazali and Zhejiang XSD president Shengfeng Lee.

Zheijiang XSD also concurrently entered into a sale and purchase agreement with Sime Darby Property Bhd for the land where the green paper industry park is to be located.

Lee said Zhejiang XSD’s investment will contribute an annual output of RM1.8 billion while also generating RM1.5 billion through the export of products.

Kedah Mentri Besar Datuk Seri Mukhriz Mahathir (pix) said the project will strengthen the relationship between Malaysia and China. “We also believe that the investment will continue to increase China’s investors’ confidence in the state,” he added.

This collaboration was strengthened during Prime Minister Tun Dr Mahathir Mohamad’s visit to China last August.