Chinese company considers US$100 million investment in S’wak’s bamboo industry

KUCHING (May 26): Sichuan Vanov New Materials Co Ltd or popularly known as BABO is considering investing in an integrated mill producing bamboo fibre and related products in Sarawak.

This was informed to Deputy Premier Datuk Amar Awang Tengah Ali Hasan by BABO group of companies president Shen Gen Lian during a recent visit to the company in Meishan City, China.

The visit by the Sarawak delegation led by Awang Tengah was one of the initiatives to attract new investments in bamboo-based industries in Sarawak.

In a press release, it said that the estimated cost to establish an integrated bamboo production line is not less than US$100 million.

Awang Tengah reiterated that the state will facilitate BABO’s intention to further invest in Sarawak.

“A technical committee comprising of relevant agencies will be formed to facilitate BABO to conduct a comprehensive study to develop a bamboo pulp mill in Sarawak.

“This investment will further catalyse the development of bamboo plantations and the bamboo downstream processing industry in Sarawak,” he said in a press release today.

BABO is a high-tech company specialising in the research and development, production, and sales of bamboo fibres.

The company has a bamboo pulp production capacity of 300,000 tons per year requiring 1 million tons of green bamboo sourced from renewable bamboo plantations through both commercial plantations and community farming.

Meanwhile, during the previous visit, Awang Tengah was given a brief introduction of BABO’s operations by Shen.

“BABO is one of the major bamboo fibre producers in China who produces specialty bamboo-based products such as facial tissues, kitchen roll towels, soft towels, soft paper for infants, and fibre wipes.

“Bamboo is used as raw materials as it is fast-growing, eco-friendly, possesses high quality long fibres, and can be used to produce different kinds of products,” it said in the press release.

At the mill, the delegation visited BABO’s bamboo museum showcasing the history of the company’s journey in developing the bamboo-based industry and different types of bamboo-made products.

Those in the Sarawak delegation included Urban Planning, Land Administration and Environment Deputy Minister Datuk Len Talif Salleh, Ministry of International Trade, Industry and Investment advisor Dato Sri Mohd Naroden Majais, Forest Department director Datu Hamden Mohammad, and Sarawak Timber Industry Development Corporation (STIDC) general manager Zainal Abidin Abdullah.