Asia Honour Paper Industries

Asia Honour Paper Industries (M) Sdn. Bhd. is a Malaysian pulp and paper manufacturer based in Mentakab, Pahang. The company was formerly known as Malaysian Newsprint Industries Sdn. Bhd., commonly abbreviated as MNI. Its principal operation is an integrated pulp and paper mill producing newsprint from deinked pulp made entirely from recycled paper. The facility has an annual newsprint capacity of approximately 280,000 tonnes. The business was created in 1996 to provide Malaysian and Singaporean newspaper publishers with a domestic source of newsprint and reduce dependence on imported paper. It was established as a joint venture involving New Zealand newsprint producer Fletcher Challenge Paper, the Malaysian Hong Leong Group, New Straits Times Press and Rimbunan Hijau. Fletcher Challenge Paper and Hong Leong each held 33.65 percent at formation, with the remaining interest divided between the other partners. The Mentakab mill opened in April 1999 after an investment reported at approximately US$500 million. Ownership changed after Fletcher Challenge Paper was acquired by Norske Skog in 2000, transferring Fletcher Challenge Paper’s interest in MNI to Norske Skog. The company later faced structural pressure from declining demand for printed newspapers and newsprint. By 2018, MNI had recorded losses for three consecutive years. On 2 May 2018, Hong Leong Industries Berhad and New Straits Times Press sold their respective interests to Asia Honour (Hong Kong) Limited for reported consideration of RM22.3 million and RM14.15 million respectively. On 17 February 2020, Malaysian Newsprint Industries Sdn. Bhd. formally changed its name and brand to Asia Honour Paper Industries (M) Sdn. Bhd., reflecting the ownership change. In the available reference material, the company is described as operating its Mentakab pulp and paper mill and as a major supplier to Media Chinese International Limited in 2017. Media Chinese International owns Malaysian Chinese-language newspapers including Sin Chew Daily and Nanyang Siang Pau. The company’s identity is therefore closely associated with recycled-fiber newsprint manufacturing and the regional newspaper supply chain rather than with consumer-facing paper products.

Asia Honour Paper Industries originated as Malaysian Newsprint Industries Sdn. Bhd., a Malaysian pulp and paper venture established in 1996. Its purpose was to create a local supply of newsprint for newspaper publishers in Malaysia and Singapore, markets that had previously relied substantially on imported newsprint. The founding ownership combined international paper-industry expertise with Malaysian corporate and publishing interests. Fletcher Challenge Paper of New Zealand and the Hong Leong Group each held 33.65 percent, while New Straits Times Press and Rimbunan Hijau held the balance. The company built an integrated pulp and paper facility at Mentakab in Pahang. The mill began operations in April 1999 following reported capital expenditure of US$500 million. Its production model used deinking technology to convert recovered paper into pulp for newsprint production. The facility was designed around an annual output of approximately 280,000 tonnes, making it a significant industrial supplier to the regional newspaper sector. A change in the international paper sector altered the ownership structure soon after the mill opened. Fletcher Challenge Paper was acquired by Norske Skog in 2000, and Norske Skog consequently assumed Fletcher Challenge Paper’s interest in Malaysian Newsprint Industries. The company continued to serve newspaper publishers, but its market became increasingly exposed to the long-term decline in printed newspaper circulation and newsprint consumption. By the late 2010s, the business was under financial pressure. The available reference material states that Malaysian Newsprint Industries recorded losses for three consecutive years, while demand for newsprint was declining. On 2 May 2018, Hong Leong Industries Berhad sold its interest to Asia Honour (Hong Kong) Limited for RM22.3 million, and New Straits Times Press sold its interest to the same buyer for RM14.15 million. These transactions represented a major ownership transition and removed those two Malaysian shareholders from the described ownership structure. The company formally changed its name on 17 February 2020 to Asia Honour Paper Industries (M) Sdn. Bhd. The rebrand reflected the ownership of Asia Honour (Hong Kong) Limited while retaining the company’s core industrial activity. The available material describes the company as operating one pulp mill and one paper mill at Mentakab. In 2017, before the rebrand, it was identified as the largest supplier to Media Chinese International Limited, a newspaper publisher associated with titles such as Sin Chew Daily and Nanyang Siang Pau. Asia Honour Paper Industries is therefore best understood as a business-to-business, recycled-fiber newsprint manufacturer whose history follows the development, consolidation and contraction of the Southeast Asian newspaper-printing supply chain.

• 2020

  Rebranded as Asia Honour Paper Industries

  [1]Asia Honour Paper Industriesen.wikipedia.org

  Malaysian Newsprint Industries Sdn. Bhd. officially adopted the Asia Honour Paper Industries (M) Sdn. Bhd. name on 17 February.

• 2018

  Hong Leong Industries and New Straits Times Press divest their interests

  [1]Asia Honour Paper Industriesen.wikipedia.org

  The two shareholders sold their respective stakes to Asia Honour (Hong Kong) Limited amid falling newsprint demand and a multiyear loss-making period.

• 2017

  Major supplier to Media Chinese International

  [1]Asia Honour Paper Industriesen.wikipedia.org

  The company was described as Media Chinese International’s largest newsprint supplier, serving a publisher with major Malaysian Chinese-language newspaper titles.

• 2000

  Norske Skog succeeds Fletcher Challenge Paper as shareholder

  [1]Asia Honour Paper Industriesen.wikipedia.org

  Norske Skog acquired Fletcher Challenge Paper and took over its ownership interest in Malaysian Newsprint Industries.

• 1999

  Mentakab mill begins operations

  [1]Asia Honour Paper Industriesen.wikipedia.org

  The integrated pulp and paper mill in Mentakab, Pahang, opened in April after reported investment of approximately US$500 million.

• 1996

  Company established as Malaysian Newsprint Industries

  [1]Asia Honour Paper Industriesen.wikipedia.org

  Malaysian Newsprint Industries was established as a joint venture intended to supply newsprint to Malaysian and Singaporean newspapers without relying entirely on imports.

A regional industrial paper producer focused on recycled-content newsprint for newspaper publishers in Malaysia and nearby markets.

• Newsprint · 1999

  Recycled-fiber newsprint

  The company’s principal finished product is newsprint manufactured at its Mentakab paper mill. The available reference material states that annual production capacity is approximately 280,000 tonnes and that the product is made from deinked pulp derived entirely from recycled paper. It is supplied primarily to newspaper publishers and other print-sector customers rather than marketed as a consumer paper brand.

• Recycled pulp · 1999

  Deinked pulp

  Deinked pulp is the recycled-fiber input used in the company’s newsprint manufacturing process. Recovered paper is processed to remove ink and other contaminants before being converted into pulp for papermaking. The reference material identifies this recycled pulp route as the basis of the Mentakab mill’s newsprint production.

• 2020

  Corporate renaming and rebrandingStrategy

  Background

  Following the change in ownership, the company needed to align its corporate identity with Asia Honour (Hong Kong) Limited.

  Action taken

  Malaysian Newsprint Industries Sdn. Bhd. officially became Asia Honour Paper Industries (M) Sdn. Bhd. on 17 February 2020.

  Aftermath

  The business continued under the Asia Honour Paper Industries name while retaining its Mentakab pulp and paper operations.

  Source

• 2018

  Sale of shareholder interests to Asia Honour (Hong Kong) LimitedM&A

  Background

  Malaysian Newsprint Industries had faced declining newsprint demand and had reportedly posted losses for three consecutive years.

  Action taken

  Hong Leong Industries Berhad sold its interest for RM22.3 million, while New Straits Times Press sold its interest for RM14.15 million, with both transactions going to Asia Honour (Hong Kong) Limited.

  Aftermath

  Asia Honour (Hong Kong) Limited became the new controlling ownership reference for the business, which subsequently changed its name and brand.

  Reported consideration for shareholder interests. RM22.3 million for the Hong Leong Industries interest and RM14.15 million for the New Straits Times Press interest (2 May 2018)

  Source

1. 1Asia Honour Paper Industriesen.wikipedia.org