Nine Dragons to Start Six Paperboard Production Lines over Next Three Years
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Nine Dragons Paper (Holdings), Hong Kong, China, reports that it will, according to the company's estimation of market dynamics, have six production lines begin production in succession over the next three years, including five production lines in China as well as an additional packaging paperboard production line with an annual production capacity of 350,000 metric tons following the construction of Phase II in its Vietnam base. Along with active expansion of overseas markets, such a move is estimated to add more than 2 million metric tpy to its production capacity by then.
According to Chairlady Cheung Yan, given the "exuberant demand" in the regions where Nine Dragon's bases are located, as well as the increasing growth in downstream production capacity, the supply and demand for packaging paperboard products in the market will gradually increase. In view of favorable prospects of the market after 2015, the company is building the five production lines in China and one production line of Phase II in its Vietnam base. This will further strengthen its regional scale, diversifying its product portfolio to exploit its economies of scale in the regions.
Specifically, the company will have six production lines begin production at home and abroad in the next three years. This year, two packaging paperboard production lines with a total annual production capacity of 650,000 metric tons in Fujian Quanzhou will begin production before June. One packaging paperboard production line with a production capacity of 300,000 metric tpy in Sichuan Leshan will begin production before December.
From 2014 to 2015, a production line with a capacity of 350,000 metric tpy of Phase 1 in Liaoning Shenyang base will begin production before February 28, 2014. In the meantime, the second packaging paperboard production line in Shenyang base that was postponed previously will begin production ahead of schedule by the end of 2015, with an annual production capacity of 350,000 metric tons and a total investment of approximately RMB1.2 billion.
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