Singapore-based Pan Asia Paper Co. Pte. Ltd., a 50:50 joint venture between Norske Skogindustrier ASA, Oslo, Norway, and Abitibi-Consolidated Inc., Montreal, Canada has formed a 65:35 joint venture with Hebei Longteng Paper Corp. of China to build and operate a newsprint mill in Hebei Province, 280 km southwest of Beijing.

Hebei Longteng Paper Corporation Ltd. is an investment company partly owned by each of Hebei Province, Shijiazhuang City and Zhaoxian County.

The joint venture is called Hebei Pan Asia Long-Teng Paper Co. Ltd. Construction begins during the fourth quarter of 2003 with production expected to start during the third quarter of 2005; rated capacity is 330,000 tonnes per year of 100% recycled fiber-content newsprint.

The project will cost about $US300 million or “less than $US1000 per tonne” said Pan Asia Paper’s president and CEO, Andre Van Hattum, in an announcement. He said Pan Asia Paper will fund the project “on its own, including its share of equity of around $US70 million, without any cash from its shareholders.”

Alain Croisetiere, formerly senior vice-president, Special Projects for Pan Asia Paper, is project/managing director for the new company.

Norske Skog’s president and CEO, Jan Reinas said, “Pan Asia Paper has today a 25% market share in non-Japan Asia … (and) has already a strong position in China through Shanghai Pan Asia Potential Paper … .”

The Pulp and Paper Products Council says China’s demand for newsprint has risen from 1.15 million tonnes in 1998 to nearly 1.8 million tonnes in 2002. Market outlook estimates annual growth at close to 8% until 2010.

Hebei mill is expected to sell 70% of its production within a 500-km radius.

www.abitibiconsolidated.com;
www.norske-skog.com;
www.panasia.com.sg. PI

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