Mainboard-listed China Paper Holdings, the vertically-integrated mixed pulp paper and paper chemical products manufacturer, says it will invest in the construction of a new paper stationery production facility.

China Paper says unit Biosuccess Limited has established a wholly-owned subsidiary, Linyi San Xin Paper Products Company, for the investment.

An annual 5,000 tonnes of paper stationery mainly comprising of writing pads, notebooks and notepads will be produced from the new stationery production facility. Furthermore, part of the scrap paper from the group’s uncoated printing paper production will be used in the printing of the paper stationery.

The group aims to capitalise on the demand for cheaper paper stationery by schools and book stores in Linyi City, where it is located. Currently, such paper stationery products are supplied by printers from other provinces whereby higher transportation costs are incurred. As such, the group intends to produce its own paper stationery to supply to neighbouring schools and book stores in Linyi City, for use by students.

The average amount of capital expenditure for the Investment is estimated to be RMB20 million ($3.9 million), which will be fully funded by internal resources. About 90% of the said RMB20 million will be used for acquisition of plant and machinery and the construction of related infrastructure, and the remainder will be used for working capital and other miscellaneous expenses.

/theedgesingapore//

 

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