Sabah, a state located in east Malaysia, has announced plans to use technology to convert waste from the timber industry into biodegradable plastics in a venture called Benta X Project. The venture is anticipated to produce 10 million tons of biodegradable plastics and will commence operations in 2021.
Benta X Project will be implemented through a three-party joint venture, comprising Benta Wawasan Sdn Bhd as the raw material provider, Biosea Corporation Sdn Bhd as the funder and investor and Lax Global Resources Sdn Bhd as the technology provider. It plans to supply bioplastics resin to the manufacturers of biodegradable plastic bottles, biodegradable food containers, and biodegradable plastic bags.
It was announced that the factory will be located in Tawau, and will take at least two or three years to complete. The venture’s total cost of investment is MYR 5 billion (USD 1.13 billion) for a 15-year period, with projected revenue of MYR 42.73 billion (USD 9.5 billion) throughout the period, averaging MYR 2.8 billion (USD 635 million) sales revenue per year.
(Sources: Ministry of Plantation Industries and Commodities; The Edge Markets)