Chinese JV Mill to Produce Tissue, Deinked Pulp
Hong Kong-based Dransfield China Paper Corp. has signed an agreement with Jiangmen Sugarcane Chemical Factory Corp. in Shenzhen, China, to jointly produce quality tissue paper and deinked pulp.
According to the agreement, Dransfield will work in conjunction with Jiangmen Sugarcane to manufacture tissue paper and deinked pulp at the Jiangmen Paper Mill in China, a subsidiary of Jiangmen Sugarcane. Dransfield will provide the raw materials and utilize its technical know-how in the manufacturing of these products.
The expected annual production capacity of tissue paper and deinked pulp at the mill is 5,400 m.t. and 33,000 m.t., respectively.
Horace Yao, chairman and CEO of Dransfield, said that "we are very pleased to finalize this agreement. Through close cooperation with Jiangmen Sugarcane, the group will be able to meet its short-term raw materials requirements without totally relying on imported products, by utilizing the existing facilities of Jiangmen Paper Mill. Tissue paper and deinked pulp produced under the Dransfield brand name will be of top quality."
He added that "this cooperation will ensure the group's short-term supply of tissue paper for its two converting facilities in China. In addition, it will also allow the group to test the feasibility of recycled pulp in the market while generating income ahead of the completion of recycled pulp facilities at its two paper mills now under construction. The cooperation is beneficial to both groups and will contribute positively to both of us."
The group's Paper Mill No. 1 in Guangdong Province has completed the construction of its converting facilities in Conghua, while the converting facilities for Paper Mill No. 2 in Jiangyin Huaxi, Jiangsu Province, are expected to be completed in March.
Jiangmen Sugarcane Chemical Factory Corp. was founded December 28, 1992, and has been listed on the Shenzhen Stock Exchange since 1994. It was the first A-share listed sugar and paper company in China. The group has 14 plants, mills, and subsidiary companies, manufacturing products ranging from more than 20 kinds of sugar, to pulp board, paper, yeast, alcohol, raw pharmaceuticals, steel materials, etc.
Dransfield China Paper Corp. is primarily engaged in the brokering and distribution of a variety of paper products in China and Hong Kong. To become a dominant force in the Chinese paper products industry, the company recently embarked on a major expansion program that includes the construction of four strategically located pulp and paper mills in China.
When these expansions are completed, Dransfield will be a fully vertically-integrated paper company, engaged in the production and sale of recycled pulp, production and sale of jumbo paper rolls, conversion of jumbo paper rolls into tissue paper products, and distribution of tissue paper products under the company's own brand name.