SHANGHAI, Aug. 22, 2013 (RISI) - Nanning Sugar Industry plans to establish a subsidiary to build and run new tissue paper production capacity at an existing site in Nanning city, Guangxi autonomous region, China.
Although the firm said that details about the project, such as its supplier and timeline, have not been worked out, it announced that the new capacity could be around 20,000 tonnes/yr.
The new capacity will be located at the firm's Pumiao mill, which can currently produce 130,000 tonne/yr of bagasse pulp. The output from the fiber line will be used to produce tissue on site.
According to Nanning Sugar, it will form a joint venture (jv) called Yuewei Paper with two partners to manage the new tissue capacity.
Nanning Sugar will have a 53% stake in the jv, and two other partners - Dongguan Hengwei and Gaozhou Sugar and Paper - will each hold a 23.5% stake.
Nanning Sugar is a major pulp and paper producer in the Guangxi region, but it has closed a good deal of old, small equipment over the past two years due to pollution issues and poor performance.
In 2013, the firm announced it would shut down a 50,000 tonne/yr cupstock mill and a 50,000 tonne/yr UFP facility in Nanning (No. 26, p.8).
Last year, it closed another 35,000 tonne/yr printing and writing paper plant in the same city.
Besides the Pumiao site, the firm currently has a capacity of 50,000 tonnes/yr of paper at several other mills.