Sun Paper Group turns to Sugar Industry

By CnAgri2012-09-17 14:23:55 Print

On 16th Aug, Sun Paper Group claimed to integrate its various businesses. Two of its paper companies will be integrated, $21.8816million will be cut from the registered capital regarding one of its holding subsidiaries. Besides, it planned a self-investment of RMB30million to set up a biotechnology company engaging in R&D of xylitol derivatives.

According to public announcement, Sun Paper Limited Company, a wholly-owned subsidiary of Sun Paper Group, will merge Yanzhou Chaoyang Paper Co., Ltd, one of Sun Paper Group’s holding subsidiaries. Meanwhile, RMB51.98million will be cut from the registered capital regarding Sun Paper Limited Company. $21.8816million will be cut from the registered capital regarding Yanzhou Tianzhang Paper Co., Ltd, one of Sun Paper Group’s holding subsidiaries. $11.1596million will be cut from the registered capital regarding Sun Paper Group. $5.2516million will be cut from the registered capital regarding Yanzhou Jintaiyang Investment Co., Ltd. $5.4704million will be cut from the registered capital regarding U.S. Jinrui Group.

About the reason for the investment, Sun Paper Group said that they had mastered the technology of producing new xylose and xylitol by using hydrolyzate extracts from pulping process. The technology was based on cooperation with relative research institutes and had been applied for patent protection.

While reducing its investment in paper industry, Sun Paper Group plans to enter biotechnology industry, setting up wholly-owned subsidiary of Shandong Shengjie Biotechnology Co., Ltd by self-investment of RMB30million, which will engage in xylose, xylitol and xylitol derivatives regarding R&D, production and sales.

From "China Wood Market Monthly Report"