Brief Profiles Of Investment Projects
For China's Agenda 21

Title Paper and Pulp Manufacturing
Type Expansion of production capacity and modernisation of technology and equipment
Description   
The advanced APMP (BCTMP) pulping process will be adopted to produce chemi-mechanical pulp with high quality and whiteness, changing the primary input from straw to poplar and birch. This pulp will be combined with purchased long fibre wood pulp to produce Light Weight Coated (LWC) paper. The APMP pulping equipment will be obtained from abroad. The implementation of the project will also make full use of the local poplar and birch sources as the raw material which currently are not utilised completely.
Rationale   
There are readily available, abundant sources of poplar and birch growing in the Chengde region which will be utilised in this project as the main raw material, replacing straw. BOD and COD discharges from this pulping process, which contaminate the water supply of Tianjin city, will be greatly reduced in comparison with the former method of production. The new technology will provide a considerably improved financial return over the former process.
Products   
LWC paper - capacity 50,000 tpy; Specifications: 3 g/m*m, 6g coating, smoothness >= 400 s, whiteness >= 85%, opacity >= 90%, surface strength >= 80 cm/s.
Location Shangbancheng town, Chengde county, Hebei province
Available Information Pre-feasibility study
Total Investment (US$)

28.4 million

Foreign Currency (US$)

11.7 million

Financing

Co-operation Sought

Total Equity (US$)

8.2 million

  
Of which Equity Foreign Partner (US$)   

Equipment purchase

Loan (US$)

20.2 million

Technical expertise

Others(specify) (US$)      
Indicators of Viability Internal Rate of Return: 25%; Payback Period: 5 years (construction period included); Break-even Point: 22%

INFORMATION ON SPONSOR

Name Chengde county Paper Mill of Hebei province Tel +86-314-3050312
Address Chengde county, Hebei province Fax +86-314-3050111
Annual Turnover (US$) 1993 6.7 million 1994 7.5 million 1995 8.5 million
Year of Establishment 1968 No. of Employees 840 Ownership State
Fixed Assets (US$) 6.4 million Registered Capital (US$) 4.8 million
Land (ha.) 13.3 Building (m*m) 30,000 Equipment (US$) 1.7 million

 


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