Nine Dragons Paper to open 350,000 tonnes/year paperboard packaging line in Vietnam in 2016, one of six new lines to be added over next three years with paper capacity of more than 2 million tonnes; other five lines to be built in China

BEIJING , May 13, 2013 () – Reported by cnfol.com:

On May 7, Nine Dragons Paper noted, the company was going to add 6 new paper lines in next 3 years and new paper capacity will exceed 2 million mts.

Yan Cheung, Managing Director of the company said, the new capacity decision was made on positive expectations of the market. Among the 6 new lines, 5 were already publicized, all of which are located in the country. The sixth one is at Vietnam Base. In planned start up of Second Phase this line will be added with annual output of 350,000 mts and it is a packaging paperboard line.

The investment for the new paper line in Vietnam will total US$ 180 million (HKD 1.4 billion). This line will be built before the end of 2016. By the end of Dec 2012, the total designed capacity of the company was12.55 million mtpy.

Although in mainland China the sector was harassed by oversupply problems. Entering 2013, some analysis pointed out that with economic recovery, paper sector will get out from the low ebbs and market demand would jump. Average sales price of paper products was picking up year on year on an average basis.

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