Sappi is to acquire a 34% stake in Jiangxi Chenming Paper Company, in a joint venture with: Shandong Chenming Paper Holdings; Jiangxi Paper Industry Company; Shinmoorim Paper Manufacturing Company; and the International Finance Corporation.
Sappi's equity contribution will be 33m ($60m). The total cost of the project, which involves construction of a 350,000 tonnes per year lightweight coated paper machine, will be 266m.
Stora Enso is starting a joint venture with Shandong Huatai Paper in China to conduct a pre-feasibility study concerning publication paper production. It is expected to be completed by March 2005. Stora will be the majority shareholder.
