Jingxing Paper to Invest a High-strength Corrugated Paper Project with Annual Production of 300,000 tons

By CnAgri2013-07-16 11:10:36 Print Recently, in the general manager office meeting of Zhejiang Jingxing Paper Corporation, it was proposed of " high-strength corrugated paper project with annual production of 300,000 tons", and it hired Changsha Engineering Co., Ltd. of China Light Industry to make feasibility study on the project, who issued the " Feasibility Report of High-Strength Corrugated Paper Project with Annual Production of  300,000 Tons of Zhejiang Jingxing Paper Co., Ltd.  "
 
It was reported that the project would be established in Jingxing paper industrial park in Caoqiao Street, Pinghu city, Zhejiang Province. The project required about 24 months from equipment contract taking effect to trial production. It is invested 459.9 million yuan, which is divided into construction investment, interest during construction and circulating funds, the first part is 419.66 million yuan with 13.77 million dollars, the second part is 18.37 million yuan and the third part is 21.87 million yuan. The fund is provided by own funds of Jinxing Paper and bank loans. Through the project economic analysis, it is expected to achieve sales revenue 766.03 million yuan after the project is put into production and the average profit will total 46.76 million yuan.
 
Currently, over 75% capacity of Jingxing Paper focused on production of high-grade Kraft liner board and product variety was single. In purchasing, customers from downstream should take into consideration of matching of Kraft liner board and corrugating medium paper and in view of unified quality and economical transportation, customers tend to choose suppliers who can provide complementary products. To maintain the market share and industry status, Jingxing plans to establish high-strength corrugated paper project in 2013. By accomplishing 300000 MT complementary capacity, Jingxing tries to solve the single-product problem so as to promote sale of major products, raise product value, stabilize customers and enhance market competiveness. As the investment term is long, there may exist certain risk for smooth development of the project influenced by some uncertain factors such as approval of relevant departments and constructions etc.

From “China Wood Market Monthly Report”