Tiger Paper to Start $933.3 Million Paper Project in Hunan

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Researched by Industrial Info Resources (Sugar Land, Texas)--China's Tiger Paper will start a $933.3 million paper project in Hunan Province before the end of this year after three years of preparation. Tiger Forest and Paper Company Limited (Yueyang City, Hunan Province) had signed an agreement with Changde City to build a forest-pulp-paper integrated project, with annual capacity of 1 million tons. The project is set to start in late December in the Changde Development Zone.

The first phase of the $933.3 million project will include 300,000-ton dissolved pulp and 300,000-ton pulp-fibers product lines, as well as related forest and port. A total of $600 million will be invested in Phase I, which will be put into operation after one and half years. An analysis of the environmental impact of the dissolved-pulp unit and a feasibility study for the pulp-fibers unit have been completed. Tiger Paper has set Changde Baichuan Forest Company to manage the project.

According to the agreement signed in 2004, Changde will allow Tiger Paper to invest in 150 million square meters of a poplar forest. And besides the paper project, there is also a 500,000-cubic-meter-per-annum board unit. Related thermal-power and sewage-treatment items are also included. There have been no recent reports of changes to the 2004 plan.

The project is one in which Tiger Paper has prepared its biggest investment ever, as well as its most advanced techniques. The Hunan provincial government has listed the project as a key project in its 11th five-year plan.

Tiger Forest and Paper Company Limited is Hunan's largest company of its kind with more than four decades of history. The state-owned enterprise has $1.01 billion assets, operating businesses in pulp and paper, light machines, import and export, and material base, and more.

China's State Development and Reform Commission announced its policies in the paper-making industry's development in October, saying China will develop 265 million tons of paper- and paperboard-making capacity, and close 6.5 million tons of backward capacity before 2010.

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