Tissue World Magazine
Alexandra Stuthridge, Technical Business Manager, BioProducts Institute (BPI)

Orient Paper has secured the land lease of 200,000 square metres for its new household and tissue paper production facilities.

The Chinese producer also signed the construction and installation contract for the first production line in these facilities through its subsidiary Hebei Baoding Orient Paper Milling.

The lease is located in the Wei County Economic Development Zone in Hebei Province.

Orient Paper has also signed a construction and installation contract with a leading paper manufacturing equipment provider in China for the first of its two household/tissue

paper production lines, each having a designed capacity of 15,00tpy.

The consideration for the first production line under the contract is RMB31m, with installation scheduled to be completed by the end of the second quarter of 2014.

The company estimates that the total cost of the two tissue paper production lines and related facilities will be approximately US$43.5m.

Zhenyong Liu, chairman and chief executive, said: “Orient Paper is making steady progress with our business expansion into the tissue paper sector, as previously announced.

“Our strategy is to tap on under- served markets and benefit from the growing urbanisation of China’s rural regions, and we see great potential in the household/tissue market in north China.”

He added that the tissue paper business is one of the company’s key future growth drivers.

“We are confident that the expansion into this sector can provide long-term value for our shareholders.”

Orient Paper manufactures and distributes packaging paper (corrugating medium paper), offset printing paper and household/tissue paper.