Hung Hing Printing and two partners are planning to invest up to $300 million within the next two years on a fourth production line at a joint-venture paper mill in Zhong Shan, according to managing director Matthew Yum Chak-ming. The line would double the mill's output to 30,000 tonnes a month, Mr Yum said. The partners are Rengo of Japan and a local interest. Speaking after the company's annual general meeting yesterday, Mr Yum said Hung Hing and its partners would consider spinning off the mill once it became more mature. He said a consortium of mainland banks had agreed to lend 150 million yuan (about HK$139.5 million) to finance the building of the line. The remainder of the investment would be divided among Hung Hing, which has a 35 per cent stake in the joint venture, and the partners. Hung Hing has earmarked $120 million for capital investment this year, most of which will be used on upgrading its Shenzhen corrugated-carton plant. The company has $130 million in time deposits and no long-term debt, Mr Yum said. He said orders for April to last month had been average. The rebound in paper prices would benefit its paper operations, Hung Hing said. Net profit in the year to March 31 grew 14 per cent from a year earlier to $205 million. Turnover also gained 14 per cent to $1.37 billion.