China’s Nanning Phoenix shutting its sole mill and selling off assets

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Founded in 1996, Nanning Phoenix was once a leading market pulp supplier and an emerging tissue producer in southwestern China. The company used to run a 150,000-tonne/yr bleached kraft pulp line and several tissue machines with a combined capacity of 75,000 tonnes/yr.

All of these production lines have been idle since early 2015 as Nanning Phoenix was in the red. At the end of that year, the state-owned firm received approval from the authorities to close its mill permanently and divest the land-use rights to the local government.

A company spokesperson said most of the equipment has already been sold, including the pulp line, 11 domestically supplied machines with a total tissue capacity of 20,000 tonnes/yr, a 15,000-tonne/yr Kawanoe Zoki TM and a 30,000-tonne/yr Andritz tissue unit.

The contact declined to reveal the purchaser of the TMs or the value of the deal, but told PPI Asia that the complete pulp line was sold for around RMB 57 million (US$8 million) to a machinery company based in Liuzhou city, also in Guangxi. The pulp equipment remains at the Nanning mill while its new owner looks for another buyer.

One remaining Kawanoe Zoki machine, with a tissue capacity of 10,000 tonnes/yr, is still up for sale at RMB 5.34 million.
Nanning Phoenix received RMB 550 million in exchange for its land-use rights from the Nanning city government. Most of this went to pay off its debts and compensate around 800 workers who were laid off.

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