| On March 12th, Stora Enso announced that it would build
a pulp-paper integration project in Beihai, Guangxi. The
project will construct a pulp production line with annual
capacity of 900,000 tons, a high-grade paperboard machine
with annual capacity of 450,000 tons (to be expanded
to 900,000 tons in the future), an electric power plant
and other ancillary facilities. The wood needed as raw
material for the pulp and paperboard lines will come from
its own 120,000 hectares of Eucalyptus plantation. The
total investment for the first phase is about 1.6 billion
Euros, excluding the approximately 200 million Euros
that has already been invested in the construction of
the forest plantation. A joint venture co-funded by Stora
Enso Group and Guangxi Forestry Group (which is owned
by the Guangxi government) will be responsible for the
operation of the project. The share of the joint venture is
85% for Stora Enso Group and 15% for Guangxi Forestry
Group. The joint venture company will produce and supply
liquor packaging board and other high-grade paper board
products to meet the rapidly growing market demand. |
