Bowater Explores Plans for New Newsprint Mill in Korea
Bowater Inc. has met with Park Tae Young, Korean minister of commerce, industry and, energy to seek government support for the company's plans to build a newsprint mill in the Daebul Industrial Complex in the South Cholla province of Korea.
The Seoul Economic Daily reported that Bowater plans to invest more than $200 million to build the newsprint mill on a 200,000 m2 site acquired from Halla Pulp and Paper. Bowater, the world's second largest newsprint producer, took over the whole stake in the bankrupt Halla Pulp and Paper for $220 million last year, changing the firm's name to Bowater Halla Paper Co.
A ministry official said that Park told Bowater that his government is willing to provide "favors" when the investment plan is realized. Bowater reportedly selected Korea for the investment after examining business environments and prospects in a number of Asian countries, such as Indonesia and Thailand.