Baoding, Hebei, China 08 December 2009 / PRNewswire-Asia-FirstCall/ -- Orient Paper, Inc. (OTC Bulletin Board: ORPN), which controls and operates Hebei Baoding Orient Paper Milling Co., Ltd., a leading manufacturer and distributor of diversified paper products in Hebei, China, today announced the acquisition of digital photo paper plant assets.
The company entered into an asset purchase agreement on 25 November 2009, to gain ownership of all assets owned by Hebei Shuangxing Paper Co., Ltd., including two coating production lines of digital photo paper. The purchase price for the production lines is RMB 93 million (approximately USD 13.6 million). The company plans to commence operations using the newly acquired equipment in the first quarter of 2010, following completion of maintenance and integration. Orient Paper expects the digital photo paper segment to generate high gross profit margin and substantial net income for fiscal year 2010. The company intends to fund the acquisition with the proceeds of its recent financing and cash from operations.
"We are pleased to announce our entry into the digital photo paper market. The digital photo paper segment is a high end and profitable market that presents attractive growth potential," said Zhenyong Liu, chairman and CEO of Orient Paper. "We believe the digital photo paper segment will significantly contribute to our revenue and net income growth in fiscal 2010. We maintain a positive growth outlook as we expand our operations and product offering with continued focus on quality and efficiency."
Orient Paper, Inc., through its wholly owned subsidiaries, Shengde Holdings, Inc. and Baoding Shengde Paper Co., Ltd., controls and operates Hebei Baoding Orient Paper Milling Co., Ltd. Founded in 1996, Hebei Baoding Orient is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, writing paper, and other paper and packaging-related products in China. The company uses recycled paper as its primary raw material. As one of the largest paper producers in Hebei Province, China, the company is strategically located in Baoding, a city near to Beijing, where the majority of publishing houses are based. Orient Paper is led by an experienced management team committed to diversifying the company's product offering and delivering tailored services to its customers. For more information, visit http://www.orientalpapercorporation.com.