Lee & Man Paper aims to boost containerboard capacity to 6 million tonnes from 4 million tonnes by end of 2012 despite slowing demand, will open three new production lines in China, focus on western, central regions
September 15, 2011
– Hong Kong-based Lee & Man Paper Manufacturing Ltd. plans to boost its current 4 million tonnes containerboard capacity to 6 million tonnes by the end of 2012 despite softening demand, reported The Standard on Sept. 14.
The company will open production lines in the Chinese cities of Hongmei and Chongqing and the province of Jiangxi by December of next year.
The company wants to open more production plants in western and central China to focus on that region rather than the coastal areas in addition to establishing used paper collection points, according to CEO Raymond Lee.
Lee said inland provinces will provide more opportunities due to growing industrialization, The Standard reported.
In coastal provinces, containerboards sell for an average 450 yuan (US$70.41) per tonne, but can reach 500 yuan/tonne in other areas of China, he said.
With the increase of domestic electrical appliances sales, demand for the company’s products could stabilize over the medium and long term, despite the possibility of lower pries and an uncertain global economy, reported The Standard.
According to the company’s website, Lee & Man Paper specializes in the production of pulp, linerboard and corrugated medium used for paperboard and carton boxes. The group currently operates four paper production plants, producing 4.55 million tonnes of containerboard.
The primary source of this article is The Standard, Hong Kong, China, on Sept. 14, 2011.