Chenming LWC

completed

The project is a $487 million investment in Jiangxi Chenming a greenfield paper facility in the Changbei economic development zone, Nanchang city, China. The facility will produce 350,000 tpy of light weight coated (LWC) paper and will be built and operated by Shandong Chenming Paper Holdings (Chenming or the sponsor), the largest Chinese-owned paper company, and Shinmoorim Paper MFG Company (Shinmoorim), South Korea’s second largest coated paper producer and IFC client. The project will be implemented over an 18 month period and consist of: - installation and operation of an LWC paper machine with an annual capacity of 350,000 metric tons per annum (tpy); - a Bleached Thermo Mechanical Pulp (BTMP) plant with an annual capacity of 187,000 tpy; - a De-Inked Pulp (DIP) plant with an annual capacity of 136,000 tpy; - a co-generation power plant with a total capacity of 100 megawatts; and - ancillary infrastructure, including wastewater treatment and port installations.This purpose of this project is to support Chenming’s strategy of becoming a major international paper company within the next five years and it will also facilitate Shinmoorim’s expansion in China. In so doing, it will bridge a market gap in the availability of LWC paper in the Asia-Pacific region, which is a limited producer and net importer of coated paper. Given that market trends indicate an increasing demand for LWC paper, local Chinese production of this “light-weight” paper will reduce costs for end-users, especially those in advertising and print media.