Taipei, June 21 2012 (CENS)--Long Chen Paper Co. (LCPC), one of Taiwan's top makers of packaging paper, is rapidly increasing its share of China's containerboard market to take advantage of national construction policy there, and has mapped out a five-year project to expand its plants in Pinghu (Zhejiang Province) and Wuxi (Jiangsu Province). The company's annual production volume is projected to reach over 4,000,000 metric tons in 2017, making it the largest Taiwanese containerboard producer in China.
Long Chen's chairman, I.B Cheng, believes that Taiwan's paper companies still maintain their advantage of owning key paper-making technologies. He urges the industry to communicate with the government about providing financial support and improving related laws and regulations.
Long Chen is the second-biggest containerboard maker in Taiwan and third-biggest in China, with an annual output there of 1.2 million metric tons. Cheng notes that the Chinese government now emphasizes energy conservation and environmental protection, giving Long Chen opportunities for expansion in that country over the coming five years.
The company's annual production capacity in Pinghu is approx. 600,000~700,000 metric tons right now, but the government there can approve an increase to 3 million tons. Long Chen hopes to reach that ceiling within five years.
The company expanded production at its plant in Wuxi by 250,000 metric tons last year to meet growing market demand, and expects to boost output further to 800,000 metric tons.
Cheng is cautiously optimistic about this year's prospects, explaining that Long Chen's revenue growth could drop slightly because of falling containerboard prices. To comply with China's environment policies and boost its profits at the same time, Long Chen plans to upgrade the efficiency of its equipment and pay more attention to energy conservation.
(by Andrew Wang)