(Yicai Global) March 6 -- Guangdong-based paper maker C&S Paper plans to invest CNY500 million (USD80 million) to expand its production of premium toilet paper in its Sichuan production base to supply growing demand in China's northwest and southwest.

Lying in the Pengzhou Industrial Park in the southwestern Chinese province, the project is expected to take up to 18 months to complete, the company announced yesterday. The expanded facility will produce 50,000 tons of paper and process 70,000 tons of paper a year, increasing its revenue by CNY917 million and net profit by CNY78 million annually.

The clamor for premium toilet paper is growing in step with improved living standards, but the company's existing capacity cannot meet this growing demand. The expansion will thus help it narrow its production deficit and increase market share, it said.

China's first listed toilet paper maker, C&S Paper has seven production bases in Guangdong, Sichuan and Zhejiang provinces. It mainly produces toilet paper, handkerchief paper and facial tissue, with its products sold in China and exported to Southeast Asia, the Middle East and Africa.