Global Processing

China Shengda Packaging Group Inc. Announces Plan to Build Paper Manufacturing Plant

March 7, 2011
PRNewswire reports, China Shengda Packaging Group Inc., a leading Chinese paper packaging manufacturer, announced the company has signed a Letter of Intent to purchase the land use rights for a 166,533 square meter plot of land in Yancheng City, Jiangsu Province, China for $11.4 million to build a paper manufacturing plant. China Shengda Packaging plans to build the new plant in two phases. Phase I, which is expected to be completed by the end of 2011, will entail the construction of 100,000 to 150,000 tons per annum of paper capacity and is expected to require capital expenditures of $34.2 million, including the cost of acquiring the land use rights. Phase II, which is expected to be completed by the end of 2012, will entail the construction of 100,000 to 150,000 tons per annum of paper capacity and is expected to require $18.2 million. The Company plans to fund the purchase of the land use rights and construction of the new plant through the proceeds received from its recently closed equity financing and internal cash generation.