China's Orient Paper Temporarily Suspends Production Due to Government Mandate
Due to a government mandate, many manufacturing plants operations in Hebei province must suspend operations between Oct. 30 - Nov 12 to help reduce air pollution during the Asia-Pacific Economic Cooperation (APEC) summit on November 7.
Oct. 30, 2014 - North China-based Orient Paper today announced that it will temporarily suspend manufacturing operations for the period October 30 through November 12, 2014, in accordance with an executive mandate from the Baoding city government.
In a press statement, Orient paper said, "Among other activities, the mandate suspends production in the industries of paper manufacturing, textile printing and dyeing, cement, mining, construction and chemical manufacturing. The purpose of the directive is to help minimize air pollution during the Asia-Pacific Economic Cooperation ("APEC") Economic Leaders Week summit to be held in Beijing from November 5 through November 11, 2014.
"APEC Economic Leaders Week is an important gathering of world leaders to discuss economic development initiatives. Industrial activity throughout Hebei province is occasionally subject to this type of restriction during high profile and sensitive events in Beijing," the company explained.
Beijing aims to reduce air contaminants by 40 percent before the meeting using the same drastic pollution control measures employed before the 2008 Summer Olympics, according to Chinese media reports.
Some 69 manufacturing plants in the capital will be shut temporarily when Asia-Pacific leaders convene in Beijing, while 72 more will cut output. Surrounding cities like Tianjin and the heavily industrialized provinces of Hebei, Shanxi and Shandong will also adhere to strict anti-pollution policies, China Daily reported.
"Normal production will resume on November 13, 2014, in compliance with the terms of the directive," Orient Paper said.
The company cautions that this unplanned suspension may potentially reduce fourth quarter revenue by $6 million to $8 million when compared to previously issued guidance.
Orient Paper noted that it is evaluating possible plans to make up the lost production time, but cannot guarantee the feasibility or implementation of any such plan.
Located in North China, Orient Paper is a producer of packaging papers, printing papers, digital photo paper and tissue. To learn more please visit: www.orientpaperinc.com.
SOURCE: Orient Paper, Inc. and news reports