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New Chinese Paper Mill in Operation

Hangzhou City, China 20 June 2013 -- China Shengda Packaging Group Inc announces that its wholly operating subsidiary, Jiangsu Shuangsheng Paper Technology Development Co., Ltd, has completed the construction of a paper mill and officially gone into production. The paper mill is located in Sheyang County, Jiangsu Province, China, with annual raw paper production capacity of 150,000 metric tons.

"The completion of the paper mill is an important milestone for the Company," said Daliang Teng, Chief Executive Officer of China Shengda Packaging Group. "As raw paper constitutes a significant portion of our cost of goods sold, we expect the addition of the paper mill to enable us to more effectively manage our production costs and control the supply and quality of our raw materials.

"Once fully ramped, we believe the paper mill will drive meaningful growth for our business and further sharpen our competitive edge as a leading player in the paper packaging market," Teng added.

China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety paper of sizes and strengths.


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