Feb. 20, 2007 - Hong Kong-based paper and packaging producer Lee & Man said that it intends to use proceeds from a recent "placing of shares" to build a containerboard mill in Vietnam.

According to the company, the issuing of shares is expected to raise HK$1.46 billion, which will be used to build a pulp and paper mill with an annual capacity to produce 320,000 tons of containerboard and 150,000 tons of pulp.

Lee & Man plans to have the new plant up and running in the last quarter of 2008 or first quarter of 2009.

The company pointed out that Vietnam is a relatively low cost country, making the region a desirable area to establish its production facilities.

Lee & Man also operates the Evergreen Pulp mill in Samoa, California. The mill uses a TCF (Totally Chlorine Free) pulp-making process and has an annual capacity of 200,000 tons of unbleached kraft pulp.

SOURCE: Lee & Man