Find the news of new paper mill, Paper Mill: Nine Dragon Group, China, investment: Rs.4500 Cr., Plant Location: Maharastra.
After APP, Nine Dragons Knocks Indian Door | Rs. 4,500 Cr. Investment for Paper Making | 10,000 Jobs Creation
After APP, Nine Dragons Knocks Indian Door | Rs. 4,500 Cr. Investment for Paper Making in Maharastra | 10,000 Jobs Creation14 March 2019 | The Pulp and Paper Times
China’s largest paper manufacture giant Nine Dragons has planned to invest massively in India for paper manufacturing, approving China’s decision to completely ban the import of waste paper by 2020. Nina Dragon has signed a memorandum of understanding (MOU) with Maharashtra Government to invest some $630 million to establish a paper- and board-making presence in the state.
As per the Memorandum of Understanding, Nine Dragons will set up a unit in the state and invest Rs 4500 crore over five years to create 10,000 job opportunities, a statement from the chief minister's office (CMO) said. Nine Dragons Paper will invest 12 billion rupees (£1.28 billion) to construct the mill, which is expected to open its first phase in 2022.
An MOU was signed on 2nd March between the Maharashtra Industrial Development Corporation and Chinese paper manufacturing firm Nine Dragons in the presence of chief minister Devendra Fadnavis and state industries minister Subhash Desai.
After being funded $3.5 billion, Asia Pulp & Paper to set up India Largest paper mill in Andhra Pradesh, Nine Dragons’ investment will be second largest FDI in paper segment. Nine Dragons intends to build a mill in the state, which is located in western and central India and includes Mumbai.
A spokesperson for Nine Dragons referred to the MOU as “the first step towards a market entry,” and said little additional detail about the MOU is currently available.
“We feel very positive about building our presence in India,” says the company’s Benjamin Ng. He said the MOU “is at a very early stage; it only reflects the serious intention of the parties to work together to further explore the feasibility and start a process of studying and pinning down more details about business targets, optimal investment scales, terms and structure, etc.”
The plan to construct a new mill in India was not disclosed in the recently published expansion plans by the company while announcing the consolidated results for the half-yearly period ended December 31, 2018. During that time, the company’s focus was mainly on the completion of four new paper machines in China in 2019, which in turn will add 2.05 million tons per annum to its production capacity. It had also declared equipment upgrade and expansion works at its four pulp and paper mills in the U.S.
Founded in 1995, Nine Dragons Paper Group is the world's largest in environmentally friendly recovered paper-based paper manufacturing in terms of production capacity.
“The Chinese government's strict control on the quota and quality of the imported recovered paper has boosted a higher demand for domestic recovered paper, resulting in extreme volatility in prices. Driven by cost transfer, the price of packaging paperboard also experienced significant volatility. Under such changing market environment and leveraging on a diverse range of products, a strong global purchase network, a well-established market data system, flexible pricing and inventory strategies and an experienced sales team, the Group promptly adjusted its product pricing to offset the volatility of raw material prices and thus maintaining profit growth.” Said by Ms. Cheung Yan, Chairlady, Nine Dragons in its report.
Ms. Cheung Yan also informs about Nine Dragons’ capacity enhancement plans in the report which says that ‘The construction of three new paper machines located at our Shenyang base, Hebei base and Quanzhou base (Phase II) are underway, aiming to commence production successively in the second quarter of 2019 with a total design production capacity of 1.45 million tpa. In addition, the construction of one new paper machine located at our Dongguan base is also underway, aiming to commence production in the third quarter of 2019 with a design production capacity of 0.6 million tpa’.