July 3, 2012
Oji Paper Co., Ltd. (Oji Paper) has announced that it has entered an agreement with Shandong Century Sunshine Paper Group Co., Ltd (Century Sunshine Paper) in China and Dragon Chariot Limited in Hong Kong concerning the implementation of specialty paper business in China by establishing a joint venture. Oji Paper Group is driving the emergence and expansion in the specialty paper sector in China expected to be growth field in the future. After completing the incorporation formalities of such joint venture, Oji Paper Group will hold a new specialty paper manufacturing base in China.
The new joint venture company will be named Sunshine Oji (Shouguang) Specialty Paper Ltd., located at Shouguang, Shandong, China, the company will be incorporated in August, 2012 (planned) with a registered capital of RMB 203 Million (USD 32.5million). Century Sunshine Paper will have 51% share in the company while Oji Paper will have 29% and Dragon Chariot will have 20% share. The new JV will produce 35,000 TPA decorative paper.
In recent years, Chinese economy has sustained high growth, which raised housing starts especially in urban region with an increase in the demand of decorative paper for architectural material and furniture. Having sought the cooperation in the field of the decorative paper business in China Oji Paper, Century Sunshine Paper and Dragon Chariot finally reached an agreement to launch a joint venture, expecting that it will steadily meet the potential decorative paper market in china by utilizing each engineering skill and sales force. Oji Paper is aiming at the proactive business evolution in the Asian region as one of the mid-and long-term challenges of Oji Group’s management. Oji Paper will also bolster its efforts for further expansion and competitiveness of functional material business including specialty paper in a manner that would provide the community-based and customer-oriented service effectively and quickly through this newly built up operation base in China.