SHANGHAI, April 10, 2013 (RISI) -China's Anhui Shanying Paper Industry is postponing the startup of two big recycled containerboard PMs to late 2014 at a new mill in Maanshan city, Anhui province.
The two new machines, dubbed PMs 5 & 6, were scheduled to come online this year.
According to the firm, construction work, which was originally scheduled to start in 2011, was delayed because work on a power grid going through the new site took priority.
The power grid is a public infrastructure project to improve power supply to the city, and is to be completed very soon, said Anhui Shanying.
And the new site's civil engineering did not start until late 2012.
Metso Paper has been signed up to supply the two PMs.
PM 5 will have a wire width of 8.6 m and a production speed of 1,100 m/min. It will make kraft-top liner and testliner grades in the basis weight range of 90-175 g/m².
Its capacity will be 1,380 tonnes/day, or 490,000 tonnes/yr.
PM 6 will have a capacity of 1,540 tonnes/day, or 550,000 tonnes/yr.
With a wire width of 8.6 m and a production speed of 1,500 m/min, the machine will make recycled fluting and testliner in the basis weight range of 50-110 g/m².
Due to the delay, the firm said that the installation of PM 5 will be wrapped up by September 2014, and trial runs on the unit are scheduled to start the following month.
PM 6 will also start up in the second half of 2014.
Anhui Shanying currently has a total capacity of around 800,000 tonnes/yr of recycled containerboard and 180,000 tonnes/yr of newsprint and uncoated printing and writing paper at its mill in Maanshan.
Merger with Jian Paper:The firm is also in the process merging with Jian Paper, which has a total capacity of around 1.65 million tonnes/yr of recycled containerboard at a mill in Haiyan city, Zhejiang province.
According to Anhui Shanying, its major shareholder, the Anhui Shanying Group, plans to sell the 7.5% share it holds in the firm to Fujian Taison, Jian Paper's major shareholder, at a price of more than RMB 261.76 million ($41.71 million).
Meanwhile, Anhui Shanying will buy 100% stake in Jian Paper via a private placement. And Anhui Shanying will issue some 1,593,048,128 shares to all Jian Paper's shareholders, including Fujian Taison, which holds a 72.50% stake in Jian Paper.
Also, Anhui Shanying will issue shares to no more than ten specified investors via another private placement, to raise about RMB 993 million to replenish its working capital.
After all the deals, Fujian Taison will become Anhui Shanying's major shareholder, having about 34.05% of the firm's total shares.