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Sun Paper to set up joint venture in Vietnam

By Yu Hongyan (chinadaily.com.cn)
Updated: 2009-03-09 18:25

Shenzhen-listed Sun Paper will set up a joint venture in Vietnam with a local property firm, with Sun Paper owning 95 percent of the new company, according to its filing to the Shenzhen Stock Exchange on March 7.

The new joint venture will involve purchasing, processing, and trading of wood products, as well as the building and operating of a wharf dedicated to its wood business.

Investment in the new company is estimated to total $15 million, which will be mainly used to build a wood chip processing workshop and the wharf with an annual throughput of two million tons, according to the Shandong-based paper maker.

Sun Paper said it will set up paper pulp production bases in Laos, to ensure its increasing need of paper pulp, and plans to ship wood chips from Vietnam and Laos later.