Orient Paper Launches PM 1 Insulation Paper Line

Orient Paper Inc., Baoding, China, a producer and distributor of diversified paper products in North China, this week announced it has begun the final commercial production phase of its PM 1 renovation project, producing insulation liner paper. With a designed annual production capacity of 50,000 metric tons, the output of the new PM 1 has started to stabilize each day, Orient reports, and is expected to bring in revenue in the range of between $7 million and $9 million for 2014.

Zhenyong Liu, chairman and CEO of Orient Paper said that "we are very pleased to re-launch the renovated PM 1 a few months earlier than our original schedule. The purpose of our modernization plan is not only to convert PM 1 into a more energy-efficient production line but also to produce higher profit margin products. The insulation liner paper is used to sandwich certain insulation materials as a construction material for wall and floor insulation. It can also be combined with certain plastic woven cloth to manufacture new moisture-proof packaging material for transportation of books and magazines by the publishing industry in China. Both product applications are expected to benefit from stable market demand in this region."

Using recycled paper as its primary raw material, Orient Paper produces and distributes three types of paper products—packaging paper (corrugating medium paper), offset printing paper, and other paper products, including digital photo paper, insulation liner paper, and household/tissue paper that the company is currently expanding.

With production operations based in North China's Hebei Province, Orient Paper is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country.

Orient Paper's production facilities are controlled and operated by its wholly owned subsidiary Shengde Holdings, Inc., which in turn controls and operates Baoding Shengde Paper Co. and Hebei Baoding Orient Paper Milling Co. for manufacturing digital photo, printing, packaging, and construction paper.