In the first week of September, Odisha government organized a roadshow which was attended by Chinese industries captains and executives at Guangzhou to promote the state’s investment climate and to invite Chinese investors to Odisha.
During the roadshow, the industries minister highlighted some of the recent reforms implemented by the state government to ensure ease of doing business in the state.
Nine Dragons Paper Ltd, a public listed paper manufacturing company in Mainland China intends to set up a unit near Paradip, its first facility in India.
"Nine Dragons Paper has asked for 200 acres of land. They are keen to establish a facility near Paradip as it will be convenient to import the raw material needed to run the plant. The company does not need any virgin pulp," said Nitin Bhanudas Jawale, managing director of Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol) reported by Business Standard.
“Currently, the Group is also actively exploring opportunities in other Asian countries to strengthen its channels for raw materials procurement and processing and expand those markets with potential. The Group possesses the experience of successfully managing and operating its existing production based at Ho Chi Minh City, Vietnam, which will help to plan and smoothly implement the various overseas development mentioned above,” Ms. Cheung Yan, Chairlady of Nine Dragons Paper said in an interim report.
Previously, Nina Dragon has also signed a memorandum of understanding (MOU) with Maharashtra Government to invest some $630 million to establish a paper- and board-making presence in the state.
As per the Memorandum of Understanding, Nine Dragons will set up a unit in the state and invest Rs 4500 crore over five years to create 10,000 job opportunities, a statement from the chief minister's office (CMO) said. Nine Dragons Paper will invest 12 billion rupees (£1.28 billion) to construct the mill, which is expected to open its first phase in 2022.
Nine Dragons Paper is engaged in the production of liner board, high performance corrugating medium, coated duplex board, printing and writing the paper. Its Dongguan base in China boasts of an annual capacity of 5.25 million tonnes (MT) in design production.
In its financial report for 2018-19, Nine Dragons admitted that 2018-19 was very challenging for China's packaging paperboard industry as well as for the company. Demand was tepid and prices remained depressed owing to Sino-US trade tensions.
Source: the pulp and paper times
