A consortium comprising three timber companies has taken over a failed pulp and paper mill project in Bintulu, Sarawak, estimated to cost US$1.5 billion.

In a press statement, the Sarawak government announced that it signed two contract agreements with Grand Perfect Sdn Bhd last Thursday for a large-scale 'greenfields project' that will supply raw material to the mill.

The company represented a consortium comprising KTS Timber Industries Bhd, Samling Strategic Corporation Sdn Bhd and public-listed Ta Ann Holdings Bhd.

Sarawak forestry director Cheong Ek Choon signed on behalf of the state government, while Grand Perfect Sdn Bhd was represented by executive chairman Henry Lau, who is also the group managing director of the KTS Group of Companies.

The statement did not mention their respective equity, but said the two agreements are to establish and maintain "world-class tree plantations in the Bintulu region, to supply wood to the pulp and paper project on a sustainable basis".