ADB Funds $60m Expansion of Malaysia’s Recycling and Sustainable Paper Facility

The new loan will finance the installation of a state-of-the-art German recycling and packaging paper production line, adding 600,000 metric tons of annual capacity.

The Asian Development Bank (ADB) has approved a $60 million (yuan equivalent) financing package for Jingxing Holdings Malaysia Sdn Bhd, a subsidiary of Zhejiang Jingxing Paper Joint Stock Co., Ltd. The investment will support a major expansion of the company’s advanced wastepaper recycling and packaging paper production facility in Selangor, Malaysia, marking ADB’s first private sector project in Malaysia since 2007.

High-Tech Expansion to Boost Circular Economy and Regional Supply Chains

The new loan will finance the installation of a state-of-the-art German recycling and packaging paper production line, adding 600,000 metric tons of annual capacity. Once completed, the Selangor facility’s total production capacity will rise to 1.4 million metric tons per year, significantly strengthening Malaysia’s position as Southeast Asia’s leading recycling hub.

The project directly supports Malaysia’s national push toward a circular economy, reducing reliance on virgin wood pulp, lowering landfilled waste, and helping curb marine pollution by providing sustainable alternatives to single-use plastics. Enhanced domestic recycling capacity will also reinforce regional supply chains for high-grade packaging materials amid rising global demand for greener products.

ADB: Strengthening Sustainable Growth and Job Creation

“This is ADB’s first private sector project in Malaysia since 2007 and another significant step in our renewed partnership with the country,” said Winfried Wicklein, ADB Director General for Southeast and East Asia. He emphasized that the project reflects ADB’s commitment to fostering sustainable, climate-friendly growth, reinforcing supply chain resilience, and generating high-quality jobs.

Malaysia’s packaging paper industry has expanded rapidly in recent years, driven by shifts in consumer behavior, e-commerce growth, and policies promoting waste reduction and environmental sustainability. The Jingxing expansion aligns with national targets to increase waste recovery, support recycling industries, and reduce the carbon intensity of manufacturing.

Environmental Gains: Major CO₂ Reductions and Advanced Treatment Systems

The upgraded facility is expected to avoid approximately 678,000 tons of CO₂ emissions annually—a major contribution to Malaysia’s climate goals. The project will incorporate best-in-class wastewater treatment and emissions control technologies, ensuring environmentally responsible production at all stages.

In addition to its climate and environmental benefits, the expansion will create over 200 direct jobs during construction and operations, boosting local employment and technical skill development.

Promoting Gender Inclusion and Safe Work Environments

Beyond infrastructure and environmental improvements, the ADB-financed project includes social reforms aimed at strengthening workplace policies. Jingxing Malaysia will implement enhanced protections against harassment of women and will introduce leadership development programs tailored for female employees, supporting broader gender equality and workforce empowerment goals in the manufacturing sector.

Industry Leadership and Regional Impact

Zhejiang Jingxing Paper—one of China’s top 10 containerboard and household paper manufacturers—brings decades of industry experience to the initiative. With over 1.35 million tons of packaging paper production capacity and operations spanning papermaking, processing, and trade, the company’s Malaysian expansion serves as a regional model for scalable, environmentally responsible manufacturing.

“This landmark partnership with the ADB is a catalyst that will accelerate the transition to a circular economy for packaging in Malaysia and beyond,” said Zhu Zailong, Chairman of Jingxing. He highlighted that the expanded facility is designed for maximum resource efficiency, reduced environmental impact, and to meet rising global demand for sustainable packaging solutions.

By combining climate-conscious technology, gender-inclusive policies, and large-scale recycling capability, the project positions Malaysia as a regional leader in the transition away from single-use plastics toward a greener, circular economy.