HK-listed Nine Dragons to buy 60 pct of Vietnam paper mill for 22.8mln usd
Monday, May 05, 2008; Posted: 10:58 PM

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HONG KONG, May 06, 2008 (XFN-ASIA via COMTEX) -- -- China's Nine Dragons Paper (Holdings) said it will buy 60 pct of Vietnam's Cheng Yang Paper Mill Co for 22.8 mln usd.

Cheng Yang makes industrial papers, including kraft paper, testliner and medium paper.

Nine Dragons said it plans to increase the production capacity of Cheng Yang to achieve economies of scale and lower production costs.

The Chinese company plans to transfer a paper manufacturing machine to Cheng Yang, which would enable the Vietnamese firm to raise its annual output to 500,000 tons from 100,000 by the end of 2009.

Cheng Yang may also invest 200 mln usd to expand its operations in Vietnam.

At 10.42 am, Nine Dragons was up 0.26 hkd or 2.97 pct at 9.37.

(1 usd = 7.8 hkd)

roby.lau@xfn.com

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