UPM Kymmene, one of the world's biggest paper manufacturers, plans to boost its presence in China, making it the company's production and sales launch pad for the Asia Pacific.
The Fortune 500 company, which has an annual turnover of 107.9 billion yuan (US$13 billion), has invested more than 8.3 billion yuan (US$1 billion) in paper manufacturing and paper converting facilities domestically.
"UPM will further strengthen its business in China as a market of global strategic importance," said Jussi Pesonen, president and CEO.
As the largest global investor in the national paper industry, UPM has three production facilities in the country, with a fourth under construction.
UPM's largest ongoing investment worldwide is its plant in Changshu, Jiangsu Province. With a first phase investment totaling 5.2 billion yuan (US$623 million), the plant can churn out 350,000 tons of uncoated fine paper annually.
The Finland-based company plans to pour 3.9 billion yuan (US$470 million) into further expanding its second phase construction, which is due to come online later this month.
"We are continuously considering new investment opportunities in China, in line with the strong market growth," said Pesonen.
Strong demand is the underlying force luring foreign investors, according to Cao Zhenlei, dean of the China National Pulp and Paper Research Institute.
Official statistics show China has become the world's second-largest paper consuming country after the United States.
Consumption nationwide in 2005 is expected to top 50 million tons. But domestic output falls short of 40 million tons, leaving a huge shortfall of about 10 million tons, which is boosting international paper-making giants forging ahead in China.
Despite rapid domestic expansion, Pesonen stresses his company's business model focuses on ecological, social and economic sustainability.
Aside from customized training of employees at plants in China, UPM has been active in transferring skills and technology, helping to protect the environment and contributing to corporate social responsibility in general. The UPM Changshu Mill has been nominated for the "Environmentally Friendly Enterprises" award - China's top accolade issued by the State Environment Protection Administration.
(China Daily June 14, 2005)
