Orient Paper to Start Production on New Corrugated Medium Machine in Q1 2011

Dec. 9, 2010 - Chinese paper producer Orient Paper said that it expects to start production on a new paper machine in the first quarter of 2011.

The new machine has the capacity to produce 360,000 tons per year of corrugating medium. However, Orient Paper noted that production from the new machine will be in the range of 168,000 tons in fiscal 2011 with production ramped up to about 20,000 tons per month by the end of that year.

"As 2010 comes to a close and we look to fiscal year 2011, we expect our growth to be driven by the launch of our new 360,000 tons per year corrugating medium paper production line in the first quarter of next year, the continued production ramp-up of our digital photo paper line, and strong average selling prices as a result of growing market demand for paper products in China and tightening supply conditions resulting from government-mandated closures of regional paper mills, said Zhenyong Liu, chairman and CEO of Orient Paper

Orient Paper said that for fiscal year 2011 the company's overall corrugating medium paper production should be between 260,000 tons and 288,000 tons — with up to 168,000 tons coming from the new production line.

In other grades, medium grade offset printing paper production is expected to be of between 104,000 tons and 110,000 tons, and digital photo paper production of between 2,300 tons and 2,500 tons, Orient Paper said.

Orient Paper, Inc., through its wholly owned subsidiary, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd., and Hebei Baoding Orient Paper Milling Co., Ltd (HBOP).

Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, and other paper and packaging-related products in China. The company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009 and located in Baoding, China, is engaged in the production and distribution of digital photo paper.

SOURCE: Orient Paper