OREANDA-NEWS. March 17, 2014. Papyrus Australia has entered into a binding Memorandum of Agreement (MOA) with the China Investor Group (CIG).

The primary objective of the MOA is to establish a banana fibre processing plant and a banana fibre product manufacturing factory in Hainan, China. Hainan is an island Province of China where there are significant banana plantations, as the company said in the press release received by Lesprom Network.

The products intended to be produced in the banana fibre processing plant are veneer and fibre, and the products to be manufactured in the banana fibre product manufacturing factory are fibre panels such as chipboard, particleboard and MDF panels, all for use in the furniture making and building construction industries. CIG has committed to a five stage program designed to achieve a successful business model in China to meet the demands in China for decorative veneer and fibre board.

CIG is obliged to purchase at least one patented Papyrus banana veneering unit (BVU) and one patented Papyrus banana fibre production unit (FPU) together with other necessary proprietary fibre panel (eg MDF) production machinery to establish the first factory. The MOA requires CIG to pay a 50% deposit for the patented Papyrus machinery by 31 July 2014.

In consideration PPY will grant CE a licence to use and exploit the patented Papyrus technologies to produce the products for sale in China.

Papyrus Australia Ltd is the developer of a world-first technology that converts the waste trunk of the banana palm into alternatives to forest wood products to be used in the paper, packaging, furniture, building, construction and other industries.