Paper Packaging producer, China Shengda Packaging Group declared that it has inked a Letter of Intent (LOI) on March 7, 2011 to acquire the land use rights for a plot spanning 166,533 m2 in Yancheng City, Jiangsu Province, China to construct a paper production facility.
Shengda Group’s subsidiary, Shengda Group Jiangsu Shuangdeng Paper Industry is the seller of the plot’s land use rights. China Shengda Packaging intends to construct the new facility in two phases. The company expects to complete Phase I by 2011 end. In the Phase I, it will construct a plant with an annual capacity of 100,000 to 150,000 tons of paper by investing approximately $34.2 million, comprising the expenditure of purchasing the land use rights.
China Shengda Packaging anticipates completing the Phase II by the end of 2012 and will extend the annual capacity to another 100,000 to 150,000 tons of paper by investing $18.2 million. The company plans to use the proceeds obtained from its internal cash generation and recently closed equity financing to fund the land use rights and development of the new facility.
Source: http://www.cnpti.com