Pan Asia Paper Company Ltd, a 50-50% joint venture between Abitibi-Consolidated Inc. and Norske Skogindustrier ASA, has announced the creation of a joint venture with Hebei Longteng Paper Corp., China, to build and operate a newsprint mill in China. Pan Asia Paper’s and Longteng’s ownership stakes will be 65% and 35%, respectively. The mill is to be built in the industrially developed Hebei Province of China, 280km SW of Beijing. Construction of the mill will begin during the fourth quarter of 2003. The mill is expected to reach full production during the third quarter of 2005 with a rated capacity of 330,000 tonnes per year. The newsprint produced at the mill will contain 100% recycled fibre. Investments amount to about USD 300 million, corresponding to less than USD 1000 per tonnes. Pan Asia Paper’s share of the equity amounts to around USD 70 million.
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