(Yicai Global) Feb. 7 -- Shandong Sun Paper Industry JSC Ltd [SHE:002078] will invest between USD1 billion and USD1.3 billion in a 30-month bio-refining mill in Arkansas, US with a 700,000-ton annual capacity.
The project will be subject to approval by environmental and commerce agencies at US federal government and Arkansas state government levels, the company said in their announcement yesterday. The paper-making company will invest USD4.8 million to set up a wholly-owned subsidiary in Delaware, US. The subsidiary will undertake all the affairs related to the plant, which will focus on the production, sales and research and development of bio-refined products with wood as raw materials, and act as its managing entity.
Once the foreign exchange regulator approves the investment, Shandong Sun will purchase foreign currency and invest using its own funds, it said.
The firm will also invest CNY2.1 billion in a high-grade paperboard plant with an 800,000-ton annual production capacity as well as complementary projects in Zoucheng, Shandong, it added. It will invest a further CNY600 million in a high-grade special paper mill producing 200,000 tons annually at the company's headquarters.