Sun Paper to Add Tissue Production Capacity in China

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Sun Paper, China, is planning to expand into tissue production, according to a recent report by RISI, Brussels, Belgium. The company says it will erect two 60,000 metric tpy tissue machines at its Yanzhou city, Shandong province, mill. The two TMs will use virgin pulp as a feedstock. A single 60,000 metric tpy machine, costing roughly RMB 450 million ($72.4 million), will be built first, followed by a second machine at a later date.

Reportedly, Sun Paper has signed a letter of intent with an investor to set up a subsidiary to run the tissue operations. The two parties, RISI reports, will invest RMB 30 million ($4.77 million) to establish the subsidiary, with Sun Paper and the investor holding an 80% and 20% stake respectively. The partner, Yanzhou Xudong Investment, is also a Sun Paper shareholder, with 16,851,238 shares in the firm.