Kuala Lumpur, 6th February 2026: PLS Plantations Berhad (“PLS”), Nippon Paper Industries Co. Ltd. (“NPI”), and Nippon Paper Lumber Co. Ltd. (“NPL”) (collectively, the “Nippon Paper Group”) announced today the signing of a Strategic Partnership Agreement (SPA) and a Joint Research Agreement (JRA) to deepen collaboration in developing a large-scale eucalyptus plantation programme and advancing related technical research in Malaysia.
Under the SPA, PLS and the Nippon Paper Group establish a structured three (3) year collaboration framework aimed at jointly exploring and assessing the commercial feasibility of developing a large scale, targeting approximately 20,000 to 30,000 hectares, eucalyptus plantation programme in Malaysia. The collaboration brings together complementary strengths, with Nippon Paper Group selecting PLS for its proven track record and operational capabilities, while PLS values Nippon Paper Group’s expertise in forest development and management, supported by its advanced in-house technologies. This strategic alignment provides a strong foundation for a mutually beneficial long term collaboration.
Through this collaboration, the Nippon Paper Group will provide technical support and advisory services to PLS’s plantation operations, drawing on its extensive global experience in eucalyptus forestry, while PLS will contribute relevant plantation data, operational insights, and identified plantation sites in the state of Johor and Pahang to facilitate the joint study and evaluation of joint development. In addition to accessing applications for woodchips and sawn timber, the parties are keen to explore the potential utilisation of eucalyptus as biomass feedstock, including black pellets and biochar. Besides, the collaboration will assess carbon sequestration potential under appropriate forest management practices and examine opportunities for the creation of forest and environmental value, including carbon credits.
Following the SPA, PLS, its subsidiary Aramijaya Agri & Agro Sdn. Bhd. (“AAA”), a joint venture company between YPJ Holdings Sdn Bhd, a statutory foundation formed by the Johor State Government, and the Nippon Paper Group have executed the Joint Research Agreement, which sets out the detailed scope, methodology, and implementation of the technical guidance to be provided by NPI and NPL.
Under the JRA, joint research and development activities will be undertaken primarily at the pilot site in Johor operated by AAA. The Nippon Paper Group will deploy its experts to provide technical expertise and advisory support, including the development of research protocols, plantation productivity methods, and silvicultural practices, while PLS and/or AAA will provide the necessary land, nursery facilities, field operations, and on-site implementation resources. The findings and outcomes of the Joint Research will support both parties in evaluating the commercial viability and scalability of a potential large scale eucalyptus plantation development programme. Upon the successful implementation of the first joint research plot in Johor, PLS and Nippon Paper Group intend to explore the establishment of subsequent joint research plot in the state of Pahang.

Shared Commitment to Sustainable Forestry and Industrial Innovation
This collaboration brings together PLS’s fast developing plantation capabilities with the Nippon Paper Group’s proven technical expertise in eucalyptus cultivation, biomass resource optimisation, and sustainable forestry models.
Both Parties view this collaboration as a significant step toward strengthening Malaysia’s sustainable timber and biomass ecosystem and exploring new avenues in renewable and plantation based materials.
Mr. Lee Hun Kheng, Group CEO of PLS Plantations Berhad, said:

“This collaboration marks an important milestone for PLS. With Nippon Paper Group’s extensive expertise in forestry management and development, we are confident that the joint research will provide valuable insights into Malaysia’s potential for sustainable, large scale eucalyptus plantation development. Beyond research, this collaboration establishes a platform for long term value creation, including meaningful gross development value (GDV) potential, underpinned by technical excellence, responsible forestry practices, and ESG aligned initiatives consistent with recognised forest stewardship standards, including the development of local talent and creation of job opportunities. We are excited and look forward to progressing the collaboration with Nippon Paper Group, including the evaluation of potential downstream activities such as pellet production for biomass related applications.”

Mr. Koichi Sato, Executive Officer, Raw Material & Purchasing Division of Nippon Paper Industries Co., Ltd., said:

“Nippon Paper Group welcomes the opportunity to work together with PLS and views the collaboration as an important step forward. With its core pulp and paper business as a foundation, Nippon Paper Group has built extensive experience in plantation forestry and forest-based businesses both in Japan and overseas. Eucalyptus is widely utilised worldwide for industrial plantations and as a raw material for pulp and paper due to its fast growth and strong resistance to diseases; however, the development of eucalyptus plantations in Malaysia remains challenging. Through this collaboration, Nippon Paper Group will apply its accumulated expertise and know-how in eucalyptus plantation development and forest management in alignment with Malaysia’s natural environment and, together with PLS, advance initiatives with a view toward future business implementation.”

About PLS Plantations Berhad
PLS Plantations Berhad (“PLS”) is a public listed company on the Kuala Lumpur Stock Exchange. Its primary business is focusing on sustainable forestry and agriculture, guided by a mission to innovate and promote integrated agri food development in Malaysia. With over 20 years of commitment and experience in the plantation sector, the Group has developed long-standing operational capabilities across approximately 35,000 hectares of forest plantation land, and has been recognised as one of the successful Public-Private-Partnership players within Malaysia’s forestry community. Aramijaya Agri & Agro Sdn Bhd (“AAA”), a subsidiary company of PLS, has prior experience in Acacia reforestation and related timber business, including the export of woodchips to Japan, providing valuable insights into Japanese market requirements, quality standards, and cross-border logistics. Known as one of the leading agroforestry player in the country, the Group remains committed to responsible land stewardship and the advancement of green innovation across its plantation portfolio in Malaysia.
About Nippon Paper Group
Nippon Paper Industries Co. Ltd. and Nippon Paper Lumber Co. Ltd., collectively known as the Nippon Paper Group, are among Japan’s leading pulp, paper, and biomass resource companies. The Group is recognised globally for its forestry expertise, sustainability focus, and technical research capabilities in plantation grown materials. The Nippon Paper Group has accumulated proprietary plantation technologies over many years across approximately 160,000 hectares of company-owned forests in Japan and overseas. In particular, through eucalyptus plantation operations conducted by its subsidiary Amcel in Brazil, the Group has developed expertise suited to tropical regions, including breeding technologies, nursery management, wood property measurement, plantation operations, and productivity enhancement. The Nippon Paper Group also has extensive experience in international forest management practices, including the acquisition of FSC certification, and intends to apply these technologies and know-how within this collaboration. While the Group has conducted overseas plantation operations primarily in Brazil and Australia for over 30 years, it aims to expand its activities with a focus on Asia, which is geographically closer to Japan, in order to secure stable wood resources. This initiative represents the Nippon Paper Group’s first overseas plantation project in Southeast Asia.