Xinjiang Firm to Make Paper from Stone

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Researched by Industrial Info Resources (Sugar Land, Texas)--Two Chinese firms signed a letter of intent to build a special paper factory in Xinjiang, as the paper industry continues to prosper. Xinjiang Tianhong Paper Industry Company Limited (Shihezi, Xinjiang Autonomous Region) and Hong Kong Wanlixing Company Limited (Hong Kong) showed their intent to invest $132 million in a 12,000-ton-per-year paper factory that will manufacture paper from stone.

In the joint venture, Xinjiang Tianhong will earmark $79.2 million in cash (60%), while Wanlixing will hold the remainder. The factory will grind stone that is rich in calcium carbonate into powder. Workers will then add resin, adhesive and other materials, allowing the substance to dry in order to make a waterproof paper.

Without cutting trees and generating little waste, the paper's wholesale price is around $880 a ton, 30% lower than traditional paper. The products will be used to produce newspaper, wrapping materials and shopping bags. Xinjiang Tianhong has stopped pulp-making production lines due to the rising price of raw materials and has therefore invested in the new technology.

China's paper industry earned $25.4 billion from January to May, an increase of 26.44%, while its profit was $1.5 billion, an increase of 63%. Paper prices have continued to rise since the second half of 2007, caused by rising price of pulp and imported waste paper.

China imported 8 million tons of pulp last year, the third largest import after oil and steel. From January to July this year, China imported 5.89 million tons of pulp, a rise of 19.3% on a year-on-year basis, worth $423.7 million. Analysts say due to rising demand, the prices will continue rising.

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