Shanying to build new recycled pulp mill in the US

20 Aug 2019 − 

After Nine Dragons, Shanying has now also announced it wants to build a recycled pulp plant in the US. The company is strongly investing in its Wickliffe pulp and paper mill which it acquired from Verso only last year.

Chinese paper group Shanying International Holdings is continuing to invest in the USA - a market that the company only recently entered. According to a news release from the state of Kentucky, Shanying's US subsidiary Phoenix Paper wants to install a new recycled pulp mill with a capacity of 700,000 tpy in Wickliffe.

The company put the investment sum at $220m. The Kentucky state government, which will likely provide Phoenix Paper with financial support in the form of tax incentives, said that the project will create 150 new jobs and construction work is slated to begin before the year's end. The project is reportedly set for completion within 14-18 months.

Shanying bought the Wickliffe site from Verso Corporation last autumn and renamed it Phoenix Paper. Verso used to make coated woodfree paper, uncoated paper, speciality paper and pulp in Wickliffe, but closed the site in mid-2016. In addition to recycled pulp, Shanying wants to produce pulp and recycled corrugated case material at the site. Hardwood pulp production already started towards the end of May this year, with output being ramped up gradually to a maximum capacity of 300,000 tpy.

Chinese paper producers responding to
restrictions on RCP imports

Major Chinese paper manufacturers that urgently need fibre for their packaging paper mills, some of them massive in scale, are looking for ways to circumvent the hurdles put in their way since the Chinese Government hindered recovered paper imports into the People's Republic by imposing restrictions. Opening recycled pulp plants abroad is one of the ways for them to circumvent the difficulties in recovered paper procurement.

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