Shandong Paper-Maker Supersizes Laos Plant
Shan Dong Sun Paper Industry Joint Stock Co. Ltd. will spend more than $600 million on a major upgrade for a production facility in Laos, seeking to make it profitable by recycling waste paper imported from North America and Europe.
Sun Paper’s board has approved an additional investment of $673 million into the plant in Laos’ Savannakhet province, more than doubling the previous $433 million in total investment since the facility’s establishment in 2010, the company said in a Wednesday filing to the Shenzhen Stock Exchange.
The expansion will have the annual capacity to make 1.2 million metric tons (1.32 million short tons) of pulp and paper products, which will be recycled mostly from waste paper imported from the U.S. and Europe, it said. That would include one production line capable of making 400,000 metric tons of fiber pulp board, and two lines each with capacity to make the same amount of wrapping paper.
Sun Paper said it expects the new addition should be able to turn the Laotian plant profitable from its current money-losing status. Last year the facility posted a 14.5 million yuan ($2.15 million) loss on just over 144,000 yuan in revenue. But the company estimated the new project will be able to generate 641.5 million yuan in annual revenue, and a profit of 84.2 million yuan.
It said the expansion must still be approved by the company’s shareholders, as well as the relevant authorities in both Laos and China.
The project is part of a new generation of overseas investments by Chinese firms under Beijing’s Belt and Road initiative, which encourages infrastructure-related companies to export their building and manufacturing expertise to countries along the ancient maritime and land-based Silk Roads connecting China with Europe.
Paper-product makers have been active among that group, launching several projects in Scandinavia where the industry is well developed.
In April, Anhui Shanying Paper Industry Co. Ltd. said it would invest in a major new pulp and organic products manufacturing facility in partnership with Finland’s Boreal Bioref. That same month, personal-hygiene products-maker Hengan International Group Co. Ltd. said it would buy about a third of Finnish company Finnpulp, which was also planning to build a major pulp-producing facility.
Contact reporter Yang Ge (firstname.lastname@example.org)
Jun 26 18:38
Jun 26 18:28
Jun 26 18:51
Jun 26 17:29
Jun 26 16:51
Jun 26 15:56
Jun 26 14:05
Jun 26 12:03
Jun 26 10:50
- 1In Depth: Nio Stalls in Its Quest to Become China’s Tesla
- 2Honda Battles Great Wall Motors Over Copyright Case
- 3EV Fires Caused by Fast-Charging Flaws, Chinese Scientist Says
- 4Huawei Rolls Out New Kirin Chip for Mid-Range Phones
- 5In Depth: How Baoshang Takeover Shook Secretive Corner of Bond Market
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas