KUALA LUMPUR (April 22): Global paper manufacturer Zhejiang Jingxing Paper Joint Stock Co Ltd is set to expand its manufacturing operations in Banting, Selangor, with a RM1.9 billion investment.

This investment commitment marks Phase 2 of the company's Malaysian expansion, which was launched on Tuesday with a piling ceremony, according to a joint statement from the Malaysian Investment Development Authority (Mida) and Zhejiang Jingxing Paper.

Zhejiang Jingxing Paper, a company listed on the Shenzhen Stock Exchange, operates in Malaysia via its wholly owned subsidiary, Jingxing Holdings (M) Sdn Bhd (Jingxing Malaysia).

The expansion is projected to add an annual production capacity of 600,000 tonnes of kraft liner, a type of paperboard made from high-quality recycled paper and commonly used for packaging.

“The expansion includes highly advanced manufacturing lines supported by integrated thermal power, water treatment, and wastewater management facilities. The plant’s integrated automation systems will create 500 new jobs and generate annual local operation expenditure exceeding RM45 million,” the statement detailed.

This latest commitment brings the group’s total investment in Malaysia to RM3 billion.

Speaking about Zhejiang Jingxing Paper’s decision to increase its investment in Malaysia, Jingxing Malaysia deputy chairman and director Wang Zhiming highlighted the country’s strategic location and strong support from both the federal and Selangor governments as key factors in their continued collaboration.

“The new plant, when completed, will further enhance our product range and quality. We are focusing on service efficiency, local employment, and supply chain opportunities,” Wang said.

“We look forward to driving technological innovation and fostering long-term partnerships and growth in the paper industry, while continuing to meet our customers’ expectations for sustainably-driven products,” Wang added.

According to Wang, the expansion will also strengthen Malaysia’s export capabilities, with 70% of the production targeted for international markets.

“This investment contributes to Malaysia’s growing paper manufacturing sector, which attracted RM877.9 million in investments throughout 2024, with foreign investments accounting for RM578.4 million,” he noted.

“This reflects a broader trend of international manufacturers choosing Malaysia as their strategic production hub in Southeast Asia,” he concluded.