A Malaysian logging giant has threatened to sue Greenpeace over a report highlighting its alleged destructive record but environmental group vowed it would not back down.

In a statement here, Greenpeace said it had received a letter from the lawyers of the company, Rimbunan Hijau, demanding an apology and the withdrawal of the report published in February, as well as the list of the recipients of the report.

"RH is hoping that the threat of litigation will silence its critics. But Greenpeace won't back down, nor will we retract any allegations we have made. We're confident our report will hold up in court," said Greenpeace International's legal counsel Jasper Teulings.

The Malaysian company dominates the logging industry in Papua New Guinea and has interests in Gabon, Equatorial Guinea, Malaysia, Vanuatu, Indonesia, New Zealand and Russia, making it "one of the world's largest and richest retailers in forest destruction," Greenpeace said.

The report, entitled "The Untouchables - Rimbunan Hijau's World of Forest Crime and Political Patronage", highlighted the company's "corrupt and destructive activities," it said.

"Many of these operations are characterised by documented illegalities and environmental destruction. It is alleged that RH uses tactics such as political corruption and abuses of indigenous peoples' rights within its operations," it added.