Sun Paper plans USD 601m (RMB 4bn) pulp and packaging paper lines as Q3 profit rises 35%
Sun Paper's board has approved two projects at its Yandian site in Shandong worth a combined USD 601m (RMB 4bn): a 500,000 t/yr chemical wood pulp line with alkali recovery and a 600,000 t/yr packaging materials line using recycled fibre and market pulp, both subject to shareholder approval and due to start trial production in the fourth quarter of 2027. The group also plans a USD 150m (RMB 1bn) capital injection into its Nanning subsidiary. Nine-month revenue rose 10.46% to USD 4.80bn (RMB 31.96bn) and net profit 16.88% to USD 439m (RMB 2.92bn), as Chinese containerboard prices rose.
Why this mattersA leading Chinese containerboard producer is expanding integrated pulp and packaging-paper capacity just as containerboard prices rise, adding to regional supply.
- Yandian projects total USD 601m (RMB 4bn): 500,000 t/yr chemical wood pulp and alkali recovery line, USD 376m (RMB 2.5bn); 600,000 t/yr paper-based packaging materials line, USD 225m (RMB 1.5bn)
- Projects need shareholder approval as 12-month new investments exceed 20% of latest audited net assets; 18-month build, 20% of investment by end-2026, trial production Q4 2027
- USD 150m (RMB 1bn) injection lifts Nanning Sun Paper's registered capital to USD 601m (RMB 4bn) from USD 451m (RMB 3bn)
- Nine-month revenue USD 4.80bn (RMB 31.96bn), up 10.46%; net profit USD 439m (RMB 2.92bn), up 16.88%
- Q3 revenue USD 1.67bn (RMB 11.10bn), up 12.03%; Q3 net profit USD 146m (RMB 970m), up 34.89%
- Q3 Chinese average containerboard price USD 574 (CNY 3,822) a tonne, up 4.68% quarter on quarter and 9.14% year on year