Chinese paper mill group Lee & Man Paper has revealed that it intends to increase its recycled pulp capacity in South East Asia.
On revealing an annual net profit increase of 10.7% in its 2020 full year results, the company said that it intends to increase production capacity of pulp in Vietnam, Malaysia and Indonesia.
In its results statement, the company said: “In order to cope with the domestic ban on the import of waste paper from 2021, the Group will actively expand its recycled pulp business in South East Asia to replace this imported waste paper, enhance the allocation of raw materials and ensure production cost advantages.”
Lee & Man Paper chairman Wenjun Lee added: “Looking forward, the Group will continue to actively optimise the industrial chain to achieve paper and pulp diversification of the business.
“At the same time, based on the original production scale, the group responded to the [Chinese Government’s] ‘One Belt One Road’ strategy, targeting the South East Asian market and expanding the international industrial layout, and increased new production capacity in Vietnam, Malaysia and Indonesia.”
Although net profits increased to Hong Kong Dollar 3.65 billion (£340 million) from HKD 3.3 billion (£307 million) in 2019, Lee & Man said it had been a challenging year due to Covid and an uncertain international business climate due to friction between China and United States.
The company also reported rising papermaking costs.