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NEWS
Chenming Paper to invest RMB 9.8 bln in paper projects
http://www.sbdailynews.com 2009-06-12
Holdings<000488><200488><1812>, a key paper producer in China, recently announced that the firm will invest RMB 9.8 billion in two paper projects and a logistic project in Shouguang City, Shandong Province.

According to the company's filing with the Shenzhen Stock Exchange, Shandong Chenming Paper would invest RMB 5.2 billion in a low-weight coated art paper project and RMB 2.6 billion in a white-coated linerboard project. Meanwhile, it plans to invest RMB 2 billion to build a logistics center and the supporting railway.

The investment will help the company increase high-end paper production and therefore enhance the overall competitive strength.

The low-weight coated art paper project, which is designed with an annual capacity of 800,000 tons, is expected to be completed by May 2011. The estimated sales revenue and profits are RMB 5.37 billion and RMB 850 million respectively.

The white-coated linerboard project is expected to be completed by February 2011 with an annual production capacity of 600,000 tons. It will generate RMB 2.33 billion in sales revenue and RMB 430 million in profits per annum.
 
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