(News from RISI) China’s Hwagain Group has shut down a 55,000tpy mill in Nanning city, Guangxi autonomous region.
The mill, which had a combined capacity of around 20,000tpy of tissue and 35,000tpy of uncoated fine paper, stopped production in late August.
The mill’s 60m chimney was demolished on 31 August to great local fanfare.
The site that the mill occupies will be used for commercial developments. Public facilities such as a park and a bridge are planned there.
The mill has long been a target of local residents’ anger over pollution.
And in recent years, the quick pace of urbanisation has brought the site into the center of Nanning’s Wuxiang New District.
The district is becoming Nanning’s administrative and commercial center, as well as a transportation hub and production base.
Moreover, Nanning will host the 45th World Artistic Gymnastics Championships in October, and the main stadium is not far from the mill site.
In view of all these factors, the local government had decided to dismantle Hwagain’s chimney by the end of August.
According to the authorities in Nanning, the shutdown of the mill has progressed smoothly.
Some 1,350 former staff members have seen their employment terminated and received compensation.
The local government has not mentioned any relocation plans for the mill, and sources report that the firm has not planned a new facility around Nanning.
Hwagain presently runs a mill in Ganzhou city, Jiangxi province.
It has a capacity of 170,000tpy of bamboo pulp, 135,000tpy of tissue, and 50,000tpy of printing and writing paper.
Last year, the firm mulled over purchasing a 130,000tpy bagasse pulp mill in Nanning from Nanning Sugar Industry. But the plan was abandoned.
