According to the current production capacity plan, PM2 at the Vietnam base is expected to be completed and commence production by the end of June 2017. By that time, it is expected that the Group’s total design production capacity will reach 14.08 million tpa. In mainland China market, design capacity of the new paper machine at the Shenyang base will be increased to 0.6 million tpa.
Meanwhile, faced with a market environment in northern China with accelerated closure of outdated capacities, the Group has decided to expand its capacity at the Hebei Yongxin base.
After the capacity expansion, the economies of scale at both Shenyang and Hebei Yongxin bases can be substantially improved, while the synergy with Tianjin base in 3 product sales and recovered paper purchasing can be increased, thus bringing the Group’s leadership advantages in northern China to more prominent levels.
Furthermore, the Group has decided to build a new paper machine at each of the Chongqing and Quanzhou bases, in order to further satisfy the local demand in these markets. The above mentioned new paper machines have all been approved by the government. They are planned to commence production successively in the 4Q 2018. It is expected that by the end of 2018, the Group’s total design capacity will exceed 16 million tpa.