Yanzhou City, Shandong, China 11 March 2013 -- Shandong Sun Paper (Sun Paper) has announced its entry into the tissue market. Together with an investor, the company plans to invest around RMB30m (almost €3.7m) in the installation of its first two facilities at a site in Yanzhou City in Shandong province which will have a combined capacity of 120,000 t of tissue.

Sun Paper says it will own 80% of the stakes in the joint venture and its partner Yanzhou Xudong will own 20%. The project is to be realised in two phases but the exact time frame has not yet been determined. The project is still subject to Chinese regulatory approval.

Sun Paper mainly produces printing and writing paper as well as board, and is ranked among the five biggest paper manufacturers in China with a production capacity of 2.4 million t in 2011. Business with paper and board, however, recently experienced a serious slow-down. According to information from Sun Paper, net profits in 2012 decreased by around 66% to RMB170m.