Jinan, Shandong, China, 13 May 2010 -- /PRNewswire/ -- Asia Pacific Resources International Holdings Ltd (APRIL) today signed a definitive agreement to acquire a 90% share interest in Shandong Rizhao SSYMB Pulp and Paper Co. Ltd. (SSYMB) from existing shareholders, Rizhao First Light Industry Company and Shandong International Trust and Investment Company. The existing shareholders will continue to retain a 5% share interest each in SSYMB after the sale. SSYMB will be converted from a state-owned enterprise into a Sino-foreign joint venture company, and renamed as Asia Pacific SSYMB (Shandong) Pulp and Paper Co. Ltd.
SSYMB is located in Rizhao, a fast-developing port city on the southeastern coast of Shandong Province. Its modern, two-year old, state-of- the-art mill has a pulp line and paperboard machine with designed annual production capacity of 220,000 metric tons and 170,000 tons, respectively.
The acquisition of SSYMB signifies another major strategic move for APRIL's pulp and paper businesses in China.
"We see tremendous potential in SSYMB," said A.J. Devanesan, president of APRIL. "We plan to expand its pulp and paperboard capacity. Last year, China imported 6.03 million [metric] tons of pulp. SSYMB is well positioned to serve both the markets in China and East Asia, including South Korea and Japan. These investments in capacity expansion represent our major commitment to Shandong and China. We look forward to working closely with SSYMB's management and staff in realizing these exciting challenges."
APRIL, with offices in Singapore and operations in Indonesia and China, is one of the world's leading producers of pulp and fine paper. APRIL operates one of the world's largest pulp mills with an annual production capacity of 2 million metric tons in Indonesia and has plans to expand in China. The company also intends to increase its paper and stationery capacity from 350,000 metric tons to more than 1.2 million metric tons/year.