PLS Plantations Partners Nippon Paper for Eucalyptus Farming Research

PLS Plantations Bhd has signed partnership and research agreements with Nippon Paper to explore large-scale eucalyptus farming in Malaysia.

The three-year collaboration assesses commercial feasibility of planting 20,000 to 30,000 hectares of eucalyptus, valued for medicinal, industrial, and aromatic properties, by combining PLS’ operations with Nippon Paper’s forestry expertise.

PLS subsidiary Aramijaya Agri & Agro Sdn Bhd will host pilot sites in Johor, guided by Nippon Paper on productivity, silviculture, and protocols.

The study evaluates woodchips, sawn timber, biomass feedstock, and carbon credits, with potential expansion to Pahang if successful.

PLS CEO Lee Hun Kheng said: "We are excited to advance this collaboration with Nippon Paper Group, including evaluating potential downstream activities such as pellet production for biomass applications."

Nippon Paper, a specialist in paper and forest products like logs and lumber, views eucalyptus as pulp and paper raw material due to fast growth and disease resistance.

Koichi Sato, Nippon Paper executive officer, noted development challenges in Malaysia but committed expertise for future implementation.