Containerboard maker looks to reduce debt as profit soars
Nine Dragons Paper (Holdings) will spend 3.8 billion yuan to boost its containerboard production by 40 per cent over the next two years.
Fresh from its debut on the stock market earlier this month, the firm yesterday announced triple-digit growth in profit and turnover in its results for the six months to December last year.
Nine Dragons would raise capacity to 4.6 million tonnes next year from 3.3 million tonnes this year, said co-founder and chief executive Liu Ming-chung said.
Mr Liu's wife, founding chairman Cheung Yan, added: 'We aim to become one of the world's leading manufacturers of packaging paperboard products.'
Nine Dragons is the biggest producer of containerboard on the mainland and one of the world's 10 biggest. Its containerboard is sold mostly to package goods factories in the Pearl River Delta and Yangtze River Delta.
Chief financial officer Waltery Law Wang-chak said much of the company's capital expenditure of 1.6 billion yuan this year and 2.2 billion yuan next year would go towards expanding its two plants in Dongguan and on the outskirts of Shanghai.
