Nordic Business Report-April 25, 2006-Stora Enso Oyj signs joint venture agreement in China
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Finnish paper products company Stora Enso Oyj said on Tuesday (25 April) that it had signed an agreement with Shandong Huatai Paper to form a publication paper company in China.
The agreement establishing the joint venture, in which Stora Enso will hold 60% of the share capital, is subject to approval by the Chinese authorities.
The joint venture's paper machine at Dongying in Shandong province in China is planned to have an annual production capacity up to 200,000 tonnes of super-calendered (SC) magazine paper and other publication paper grades based on recovered fibre.
The total investment of the joint venture is estimated to be some USD100m, of which Stora Enso's share is 60%.
The production of the paper machine is expected to start up in late 2007.
One US dollar (USD) is worth approximately 0.57 British pounds (GBP).
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