Saturday, March 19th, 2016 - BHS Industries Berhad

KUALA LUMPUR - BHS Industries Berhad ("BHS" or the "Company"), which is primarily involved in Printing and Publishing ("P&P"), has begun venturing into a new sustainable green business, towards transforming and diversifying its existing core business operations. BHS aims to achieve this through the setting up of a green technology driven, Paper Mill factory using a patented Malaysian-owned technology called Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp ("PRC-RBMP").

The thrust of the project is not only to revolutionise the P&P industry by providing a new source of eco-friendly and sustainable paper and pulp, but to also provide Malaysia with an alternative source of local paper and pulp products. This is to be accomplished via the processing and manufacturing of Palm Oil Industrial waste known as Empty Fruit Bunches ("EFB") into renewable paper pulp products. Accordingly, the Paper Mill Factory using PRC-RBMP, and which spans 26 acres of land granted by the Pahang State Government, is targeted to be completed in the 1st half of 2017. With direct synergistic links to BHS's core business in P&P, it marks the beginning of the Company's business transformation through the spearheading of a new sustainable 'green' industry.

Managing Director of BHS, Dato' Lim Thiam Huat shared, "In essence, using this new proprietary 'green' technology, we can save over 200 million trees which are currently being cut down every year for paper pulp production. While seemingly ambitious, this goal is in fact realistically achievable with the co-operation and combined efforts of the authorities as well as all respective stakeholders. To date there are an estimated four hundred and forty (440) Palm Oil Mills in Malaysia generating 20 million tonnes of EFB per annum, which they are facing the major challenge of disposing of. The P&P industry meanwhile is utilising raw material from the cutting down of trees which are a dwindling resource. BHS therefore aims to bridge the gap between the needs of these two industries, creating an abundant alternative raw material source for the P&P industry while simultaneously transforming EFB into a saleable commodity for the Palm Oil industry. It will revolutionise both sectors, and present a sustainable 'green' business model that is scalable and profitable, while at the same time being a big step forward for environmental conservation in the Asian region."

PRC-RBMP is an evolving basic platform that can be built on to create new technologies for the conversion of all other waste from Palm Oil Mills into usable and saleable commodities. Ultimately, the consolidation of all these technologies will be known as "Oil Palm 'Zero Waste' Technology" and will offer a diverse source of new income derived from the trading of pulp and paper, royalties, consultancy services, the design, supply and fabrication of machineries, and the construction of new facilities. BHS is therefore currently collaborating with the Federal Land Development Agency ("FELDA") to leverage on continuous access to EFB waste from oil palm processing operations and to assist the Palm Oil Mills themselves by using what is now regarded as a waste product to be discarded. Harnessing the PRC-RBMP technology effectively, will allow the conversion of 7 million tons of pulp per annum of existing EFB waste in Malaysia, and bring about a number socio-economic benefits: new jobs are expected to be created in the surrounding areas and across the state; increased economic development especially among rural communities which will subsequently improve their standard of living; Pekan's workforce will be propelled towards being more knowledge-based. Ultimately the Company hopes to propagate the use of the PRC-RBMP technology around the region, with Malaysia as its focal point as an international biomass processing hub.

With this vision in mind, BHS, through its subsidiary Nextgreen Pulp and Paper Sdn. Bhd. ("Nextgreen"), today held an official ground-breaking ceremony at the Rest Area along kilometre 26.8, Lebuhraya Gambang - Segamat, Palo Hinai, Pekan, Pahang. The ceremony was officiated by Yang Amat Berhormat, Dato' Sri Mohd Najib bin Tun Abdul Razak, Prime Minister of Malaysia. Also in attendance were:

1. Yang Amat Berhormat, Dato' Sri Diraja Haji Adnan bin Haji Yaakob, Menteri Besar of Pahang;
2. Yang Berhormat, Dato' Sri Muhammad Safian bin Ismail, Setiausaha Kerajaan Pahang;
3. Yang Berhormat, Datuk Amar Douglas Uggah Embas, Menteri Perusahaan Perladangan Dan Komoditi;
4. Yang Berhormat, Datuk Seri Panglima Dr. Maximus Johnity Ongkili, Menteri Tenaga, Teknologi Hiau Dan Air;
5. Yang Berhormat, Dato' Lee Chee Leong, Timbalan Menteri Perdagangan Antarabangsa Dan Industri;
6. Yang Berbahagia, Datuk Loo Took Gee, Ketua Setiausaha, Kementerian Tenaga, Teknologi Hijau Dan Air

BHS is gearing towards bringing substantial potential foreign investment into the country as well as expanding into overseas markets that have a high volume of palm oil production, such as Indonesia, or countries with a high emphasis on green technology.

Dato' Lim further added in closing, "This business transformation heralds an exciting new chapter for the Company that will provide a long-term and recurring revenue stream by focusing on green and sustainable business practices. I believe that BHS is uniquely placed to introduce as well as helm this new green industry using EFB waste, so I would like to extend our most sincere gratitude from everyone at the Company to the Pahang State Government for their support and trust in granting us the land approval. It is our goal to ultimately realise 'Zero Waste' and to assist the Pahang State Government in creating and growing a Green Technology Park in the nearby town of Pekan, while simultaneously operating a profitable business model with high growth potential."

The project and the subsequent benefits it will bring, aims to highlight Malaysia as taking a pivotal role in environmental conservation within the region, and concurrently become a major player in the global paper production market. Given time, the further development Oil Palm 'Zero Waste' technology effectively will strengthen the Palm Oil Industry, rejuvenating it into a major economic pillar for Malaysia, as well as put us on the world-map of green initiatives as a leading innovator.

BHS is currently listed on the Main Market of Bursa Malaysia Securities Berhad ("Bursa Malaysia") under the stock name BHS and stock code 7241.

About BHS Industries Berhad

BHS Industries Berhad ("BHS" or the "Company") through its subsidiaries (collectively known as the "BHS Group"), are primarily involved in the printing and publishing business which includes pre-press (includes desktop publishing), press and post-press services as well as investment holding and the provision of management services.

In 2015, the Company ventured into a new sustainable business avenue via its wholly-owned subsidiary, Nextgreen Pulp and Paper Sdn. Bhd. ("Nextgreen") through the construction of a production facility on a 26-acre site forming a part of the Pekan Green Technology Park. To be completed in stages, the park will involve operations in the processing and manufacturing of pulp and paper with the goal of ultimately producing 'Zero Waste sustainable industrial zone'.

Issued By: Esente Communications (M) Sdn. Bhd. on behalf of BHS Industries Berhad

For more information, kindly contact:
Tan Hoay Ming
Tel: +603 6201 4110 / +6016 512 0051
Email: [email protected]

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Tan Hoay Ming

P: +603 6201 4110




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