A Malaysian environmentalist said she does not want New Zealand sending any more of its rubbish to her country, with some recycling plants allegedly already polluting local neighbourhoods and waterways.
Oji is closing its Penrose Pulp and Paper Mill in December with the loss of 75 jobs.
The closure means Aotearoa will be sending another hundred thousand tonnes a year of cleaned waste paper to Malaysia for recycle, bringing the total amount shipped offshore to 300,000 tonnes per annum.
Oji said its Malaysian mill must meet environmental targets for regulatory compliance, waste and water quality, and it has a social responsibility code of conduct that says it will work to improve the environment.
Paper mill closures will send more waste paper to Malaysia - environmentalist
But locals living near the Oji mill in the Malaysian town of Banting in the western district of Kuala Langat, are concerned it is already belching pollution into the local river.
Environmentalist Lay Peng Pua said they have complained to the company before and have provided both photo and video evidence of the discoloured river.
She said it was not environmentally sustainable for countries like New Zealand to keep shipping their waste to other countries.
"Our Langat River is a river full of ecology. We can get a lot of income from the river, like prawns or fish. And now, I'm very sorry [we] won't dare to eat the ... resources from the river," she said.
"Part of the problem is that now Malaysia is getting more and more waste from developed countries."
Alongside receiving large amounts of paper waste from developed countries, Malaysia also gets plastic waste, she said.
"Malaysia now I think is the top three or top one of plastic imports including New Zealand. This is very unfair and also is a human rights infringement," she said.
Lay Peng Pua said the paper mill is upstream from the town's drinking supply on the river, which is also used for fishing and watering gardens and cleaning food.
She said locals are worried about the water being unsafe and previous quality tests showed contamination.
"We plant vegetables, we plant our food with the water. The Labohan Dagang is downstream of the mill, how can this kind of environment impact be approved? It won't happen in New Zealand, but it happens in Malaysia," she said.
She is worried about people's health, she said.
"I see the cancer rate increasing, people spending more in medication fees. The increase of waste exports from a wealthy country shipping to a developing nation is perpetrating global inequalities," she said.
Lay Peng said on paper there are rules protecting the environment, but she alleges authorities turn a blind eye to what corporates are doing .
"I'm not surprised at all about Oji's action that they want to shut down their mill in New Zealand because, again, developing countries often [face] bad environment and social costs, while the wealthier nations benefit," she said.
Oji did not address the pollution from the mill allegedly contaminating the Langat river in a response to RNZ.