Orient Paper to Merge With Lingxian Taihua
June 19, 2008 - Orient Paper Inc. said that it has signed a letter of intent to merge with Lingxian Taihua Pulp & Paper Ltd.
Terms of the deal were not disclosed.
Lingxian Taihua has a pulp prodduction capacity of 100,000 tpy and a papermaking capacity of 150,000 tpy that includes paperboard, roll paper and newsprint.
In a press release, Orient Paper stated, "According to the paper milling development planning in Shandong Province, Lingxian Taihua Pulp & Paper Ltd, Co. is the pulp production center in the northwest of Shandong Province. The profit margin of pulp is larger than the finished raw paper. If the proposed merger can be consummated successfully, it could provide our wholly-owned subsidiary, Hebei Baoding Orient Paper Milling Co, Ltd., with raw material directly, thereby optimizing the industrial organizational structure of the listed company and realizing economies of scale and cost efficiency.”
Lingxian Taihua Pulp & Paper Ltd, Co. is based in China's Shandong Province.
Orient Paper is based in the Hebei province of China and produces wrapping and specialty papers including newsprint, photographic paper, corrugated and tea board paper, kraft paper, offset paper, copy paper, fruit cultivation bag paper, and Diazo paper.
SOURCE: Orient Paper