Sun Paper (SZSE: 002078) announced that it plans to invest, through its wholly owned subsidiary Nanning Sun Paper Co., Ltd., in a capacity enhancement and efficiency improvement project for an integrated forestry–pulp–paper complex in Nanning, Guangxi, with a total investment of no more than RMB 5 billion.
The project will include the construction of a 500,000 tpy unbleached chemical wood pulp production line and a 600,000 tpy specialty paper production line, with an estimated construction period of 18 months.
Project Overview and Investment Plan
The project will be located in the Liujing Industrial Park of Nanning Eastern New City and will include:
- 500,000 tpy unbleached chemical wood pulp line
- 600,000 tpy specialty paper line
- Supporting facilities including a chemical recovery system, substation, and wood chip storage yard.
| Item | Scale / Data |
| Total investment | Up to RMB 5 billion |
| Unbleached chemical wood pulp | 500,000 tpy |
| Specialty paper | 600,000 tpy |
| Construction period | 18 months |
| Investment completed by end-2026 | 40% |
| Expected trial production | Q4 2027 |
Strategic Positioning and Synergies
The project will enhance self-produced pulp capacity, optimize the product portfolio, and strengthen the Guangxi base through coordinated development of the Nanning and Beihai parks. It will also capitalize on opportunities created by the Pinglu Canal and improve integration among the Shandong, Guangxi, and Laos production bases.
Risk Factors and Mitigation Measures
Potential risks include government approvals, macroeconomic uncertainty, industry overcapacity, and changes in environmental or energy policies. The company plans to mitigate these risks through its integrated supply chain, technical expertise, flexible marketing strategy, and continuous cost optimization.
About Nanning Sun Paper
Nanning Sun Paper Co., Ltd. was established in February 2022 with a registered capital of RMB 3 billion. It is a wholly owned subsidiary of Sun Paper engaged in pulp manufacturing, paper products production and sales, and import/export business. The investment is not a related-party transaction or a major asset restructuring.
