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Paper supplier to expand capacity at Yangzhou plant

Paper supplier to expand capacity at Yangzhou plant

Taipei, Dec. 31 (CNA) Yuen Foong Yu Paper Manufacturing Co. Ltd. said Saturday it has decided to spend US$200 million (NT$6.06 billion) to add a third production line at its Yangzhou plant to tap the fast growing industrial paper market in China. Yuen Foong Yu, one of Taiwan's leading paper and pulp makers, said its board of directors had approved the investment plan. It expects the new line, which will boost the plant's production capacity to 1 million tons, to begin operating in the fourth quarter of next year. The company said it was expanding the plant to take advantage of the strong demand for industrial paper in China, which has surpassed supply and forced the mainland to resort to imports to fill the gap. Yuen Foong Yu began investing in Yangzhou in November 2004. Its first and second production lines there became operational in December 2006 and August 2007, respectively. According to the latest investment plan, the new production line will include equipment, such as a virgin pulp supply system, wastewater treatment devices and an electricity generation system, to improve product quality and the working environment. Yuen Foong Yu said the company expects to take advantage of the current debt problems in the eurozone, which has placed downward pressure on the equipment market, to negotiate advantageous terms for the new line's equipment. In addition to its Yangzhou base, Yuen Foong Yu runs an additional 12 paper manufacturing plants in China and produces a total of 860 million square meters of paper products a year, making the company one of the largest paper suppliers in China. In the 11 months to November, Yuen Foong Yu posted NT$59.58 billion (NT$1.97 billion) in consolidated sales, compared with NT$51.3 billion for all of 2010. In the first three quarters, the company had consolidated net profit of NT$2.16 billion, or NT$1.15 per share, up from NT$997 million in net profit, or NT$0.48 per share, recorded a year earlier. (By Wei Shu and Frances Huang)


Updated : 2021-08-02 17:34 GMT+08:00