SEC Closes Investigation of Orient Paper, with No Enforcement Recommendations

Orient Paper Inc., Baoding, China, a producer and distributor of tissue and paper products in North China, reports that the U.S. Securities and Exchange Commission (SEC) has completed an investigation of the company and does not intend to recommend any enforcement action. The SEC began an informal inquiry regarding Orient Paper in December 2010.

Chairman and CEO Zhenyong Liu said that the company is "very happy to put this matter behind us as we continue to expand our business in the North China region to ride on the growth opportunities presented by the rising urbanization in the country." Zhenyong said that the company is building its new tissue paper mill as planned to tap into the unmet market needs of the region, and is also ramping up its new corrugating medium paper production line.

Orient Paper uses recycled paper as its primary raw material to produce three types of paper products— household/tissue paper that the company is currently expanding into, packaging paper (corrugating medium), and printing and specialty papers including offset printing paper and digital photo papers.

With production operations based in Baoding in North China's Hebei Province, the company 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., Ltd., and Hebei Baoding Orient Paper Milling Co. for manufacturing digital photo, printing, and packaging paper.