KUALA LUMPUR (Nov 1): BHS Industries Bhd today entered into a Memorandum of Agreement (MoA) with China Nuclear Industry Huaxing Construction Co Ltd (Huaxing) to work together to develop and manage the Phase 2 & 3 of the Green Technology Park, its power generation station and other auxiliary facilities.

In a filing to Bursa Malaysia today, the MoA aims to set out the cooperation intention of both the parties before signing the formal cooperation agreement.

“Specific rights and obligations of the parties shall be defined in the follow-up Cooperation Agreement or special purpose vehicle (SPV) Agreement,” it said.

“The MoA is expected to contribute positively to the future earnings of the group upon the completion of Phase 2 and 3 of the Green Technology Park,” it said.

The Board of directors of the company is of the opinion that the MoA is in the best interest of the Company and its subsidiaries, it added.

Both parties shall collaborate and work together to jointly construct and operate Phase 2 & 3 of the Green Technology Park, Pekan Project and will jointly invest to establish a SPV company, which shall be operated together.

Green Technology Park is a park where the main industries in there will be using Green Technology to convert the Oil Palm Empty Fruit Bunches into pulp and paper, box liner paper, corrugated paper and tissue paper.

Phase 2 may involve a factory with a capacity to produce 100,000 metric tons of box liner paper and 120,000 metric tons of corrugated paper whilst Phase 3 will involve another factory with a capacity to produce 65,000 metric tons of tissue paper.   

Huaxing is a subsidiary of China Nuclear Engineering Group Corporation, a state central management company and is a well-known construction company in China as well as a leaer in nuclear power construction in China and overseas.