Korean investors propose building US$200M paper mill that will use corn stalks as feedstock in Cauayan City, Philippines; project awaits final agreement between local and provincial governments

LOS ANGELES , February 15, 2012 () –

A new US$200-million paper mill is proposed for Cauayan City, Philippines, by investors from Korea working in partnership with a local Philippines company, reported the Philippine Information Agency on Feb. 13.

The project is pending agreement among the Korean investors and local and provincial governments. Talks are under way between government officials and Korean-owned Corn Pulp and Paper Holdings, which is working with local partner Araneta and Lee Consulting.

The site for the greenfield mill will be in the forest region of Cauayan City, which is in the Philippines' Isabela province, the Philippine Information Agency reported.

Isabela is the country’s top producer of corn among other counties in the Philippines. In 2011, Isabela province produced 1.26 tonnes of corn, which was 20% of the country’s total. This was a key consideration in choosing the location, said Danilo Tumamao, provincial agriculturist for Isabela

The project will not only create jobs but also will increase the area’s corn yield by expanding the planting to 20,000 hectares to meet the fiber needs of the planned paper mill, said Tumamao, reported the Philippine Information Agency.

The primary source of this article is the Philippine Information Agency, Quezon City, Philippines, on Feb. 13, 2012.

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