SHANGHAI, Sept 25, 2014 (RISI) - Nine Dragons Paper (Holdings) has started up a new 350,000 tonne/yr recycled containerboard PM at a greenfield mill in Shenyang city, Liaoning province.
The kraft-top liner unit, dubbed PM 37, kicked off production earlier this month.
It was scheduled to be fired up by June, but the firm declined to explain the change.
Nine Dragons is planning to erect a 350,000 tonne/yr testliner PM at the same site.
The startup of the unit, PM 39, is scheduled for the end of 2016.
Elsewhere, in Vietnam, the firm is reconsidering a 500,000 tonne/yr recycled PM project at a site in Binh Duong province.
Valmet has been signed up to supply the PM, which will have a design speed of 1,300 m/min and a daily capacity of approximately 1,450 tonnes.
Startup was previously planned for June 2015. However, serious anti-China riots in Vietnam in May impacted Chinese investors there.
It was rumored soon after the riots that Nine Dragons would build the PM in China instead.
In its latest annual report, Nine Dragons stated that it will closely monitor the situation in Vietnam and make adjustments to operations based on developments in the local market.
The Vietnam mill currently has a 100,000 tonne/yr recycled containerboard PM. It is run by Cheng Yang Paper Mill, in which Nine Dragons has a 60% stake.
Berths planned: Nine Dragons is planning to build two 2,000-tonne berths at the Humen Port in Dongguan city, Guangdong province.
Its aim is to facilitate the shipments of raw materials such as recovered paper (RCP) and pulp to its Dongguan mill, which has a combined paper and board capacity of almost 5.5 million tonnes/yr.
The two berths will be able to handle 100,000 twenty-foot units and 170,000 tonnes of bulk cargo annually.
Currently, a 50,000-tonne berth at a port 12 km away from the Dongguan mill is handling its RCP and pulp shipments.
Nine Dragons has to resort to trucks to ship raw materials from the public berth to the mill, which is costly and causes heavy traffic.
Moreover, the busy public berth is presently failing to meet growing local demand.
Thus, the firm has proposed building two berths in a section of Humen Port adjacent to the Dongguan mill.
Containers received there will go directly to its warehouses for unloading.
The project is now with the Dongguan authorities for an environmental impact assessment.
The firm achieved a sales volume of RMB 28.9 billion ($4.71 billion) in the year ending June 2014, up by 0.7% year-on-year.
Nine Dragons said that the tonnage it sold increased by 5.6% in the fiscal year, but the increase was offset by lower sales prices, which declined 4.7% year-on-year.
Nonetheless, the firm's net profit increased by 12.5% to RMB 1.76 billion, thanks to its cost-saving measures.