SHANGHAI, March 21, 2013 (RISI) -Lee & Man Paper Manufacturing plans to raise its total capacity to 10 million tonnes/yr in the next few years, according to its latest financial report released this week.
Currently, the giant is moving ahead with the installation and construction of three PMs with a total capacity of 950,000 tonnes/yr in China.
PM 18, a 350,000 tonne/yr recycled containerboard PM, will start up by the end of May at a greenfield mill in Jiujiang city, Jiangxi province.
That will be later than the previously announced startup date, which was this month. But the firm declined to comment on the change.
At the same site, PM 19, a 300,000 tonne/yr recycled containerboard unit, is under construction. Its startup is scheduled for the end of this year.
Bellmer has been signed up to supply two pairs of shoe presses to the two PMs.
The four shoe presses feature an operating width of 6.9 m and a design speed of 1,150 m/min.
And Vaahto Pulp & Paper Machinery has been chosen to supply five headboxes for the two PMs.
In southwestern China's Chongqing municipality, the firm is also building a 300,000 tonne/yr recycled linerboard PM.
Dubbed PM 20, the unit is scheduled to fire up by June 2014.
Lee & Man's Chongqing site currently runs two recycled containerboard PMs with a combined capacity of around 800,000 tonnes/yr, and a swing fiber line that can produce some 165,000 tonnes/yr of bamboo pulp and 140,000 tonnes/yr dissolving pulp.
When the three PMs come online, Lee & Man's total capacity will reach 7 million tonnes/yr.
And the firm is also planning more board machines to take the firm's total capacity to 10 million tonnes/yr, but the giant did not give any details.
Tissue scheme:Lee & Man has long been mulling over expanding into the tissue sector.
Sources recently reported that the recycled containerboard giant has ordered a 60,000 tonne/yr tissue PM, which is reportedly to be located at the Chongqing site.
However, it originally submitted plans to erect three tissue PMs with a combined capacity of 200,000 tonnes/yr at its Hongyong mill in Dongguan city, Guangdong province for an environmental impact assessment (EIA).
And recently, Jiangxi's local authorities published an EIA document about Lee & Man's further expansion at the new Jiujiang site.
According to the EIA file, the firm plans to build five 60,000 tonne/yr tissue machines dubbed PMs 22, 23, 24, 25 and 26.
Details about the project are unavailable for the moment.
Fiscal year-end moved:Lee & Man has changed the end date of its financial year from March 31 to December 31, the same as the calendar year.
The financial results released this week were for the period from April 1 to December 31 earlier this week.
During the nine months, it reported a net profit of HK$1.32 billion ($170.1 million), and its sales revenue reached HK$11.42 billion.