Nine Dragons investments and expansions

I don’t have anything sensible to say about this news in itself, but look at these paragraphs:

Nine Dragons Paper has several expansion projects on the agenda until 2015. PM 35 with a capacity of 350,000 tpy of kraftliner and PM 36 with a capacity of 300,000 tpy of testliner will be commissioned in June this year at the Quanzhou mill. PM 37 is slated to be started in Shenyang in June 2014. This machine will mainly produce kraftliner with a capacity of 350,000 tpy.

PM 39 at the company’s Leshan mill is a new project. The machine will produce high-performance recycled corrugating medium for the local market. It is currently being built and is slated to be commissioned in December 2013. Recovered paper for PM 39 will be fully procured in China.

The last expansion project the company has announced to date is PM 38 in Shenyang, which is to start operation by the end of December 2015 with a capacity of 350,000 tpy of testliner. It is to take the total production capacity of Nine Dragons Paper to over 14 million t annually.

That is a rather swift pace of expansion. The expansion is apparently primarily in diverse species of containerboard production, and not in paper. This could indicate expectations of further growth in China, as all those chinese products need packaging. Nine Dragons also produces printing and writing paper, but this seems a relatively small activity. I was astonished by the specs of the Dongguang -plant, which has 15 (fifteen!!) paper machines (both board and paper). A total annual production capacity of 5.25 million tonnes. And on top of that, a ‘total land reserve’ of 2,4 million square meters. I don’t know whether it means that this is land which is not taken into use, but that is a rather big piece of land in any case. I mean, that is about 2/3 the size of the Uusimaa region in Finland, where Helsinki is located.

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