NTB ties-up with four companies in kenaf venture

NTB ties-up with four companies in kenaf venture
11 April, 2008

Malaysia is set to move into full-fledged commercialisation of kenaf- a new industrial crop, following the participation of the National Tobacco Board and four companies in the country, which will pump in an initial investment of RM35.5 million.

The National Tobacco Board (NTB), yesterday, signed a memorandum of understanding (MoU) with Integralwood Sdn Bhd, for the commercialisation and production of kenaf biocomposites in Kota Baru. NTB also signed letters of intent for similar collaborations with three other companies- KEFI Malaysia Sdn Bhd, Symphony Advance Sdn Bhd, and Kenaf Natural Fibre Industries Sdn Bhd.

Besides the tie-ups with the four companies, NTB will also be working with Unisains Holding Sdn Bhd and Malaysian Newsprint Industries for the pre-commercialisation of kenaf in the production of paper and pulp.

The Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui, who witnessed the signing of the deals at Putrajaya, said the four companies would cooperate with NTB in setting up a collecting, processing, marketing and collection Centre (CPMC) for the crop.

The cultivation and processing of Kenaf have been identified for promotion under the East Coast Economic Region (ECER), which covers the States of Terengganu, Kelantan and Pahang.

This year, NTB plans to plant 1,000ha of the crop, which is more than double the 400ha allocated for the crop last year. NTB aims to use kenaf as an alternative crop for the 5,000 tobacco farmers located along the east coast, in anticipation of a reduction in the import duties for tobacco in 2010, under the Asean Free Trade Area, which would lead to a decline in the prices of local tobacco.

Adapted from "NST Business Times", 11 April, 2008