Oct. 14, 2008 (China Knowledge) - Shan Dong Sun Paper Industry Joint Stock Co Ltd plans to set up a wholly-owned subsidiary in Laos with a registered capital of US$197.17 million, sources reported.
According to the company's statement filed to the Shenzhen Stock Exchange on Tuesday, the subsidiary will build a wood pulp mill in Laos with an annual capacity of 300,000 tons. A 30,000-hectare forest zone will be set up at the same time to provide raw material for the pulp mill, along with a thermoelectricity plant, which will provide electricity for the mill.
The investment is expected to increase the pulp supply to Sun Paper and reduce the company's dependence on foreign imports amid the surging price of the material in the global market.
The project is still subject to regulatory approval from both Chinese and Lao governments.
Bordering China's Yunnan province, Laos is rich in natural resources. The bilateral trade between China and the Southeast Asian country amounted to US$249 million last year.
the pollution will be a big problem in the future, I hate the factory.
A pulp mill
is a manufacturing facility that converts wood chips or other plant fiber source into a thick fiber board which can be shipped to a paper mill for further processing.
