A Finland-based company has made the largest single investment in China by any Finnish firm to date.
UPM-Kymmene Corporation, one of the world's largest wood production companies, marked its take-over of a US$600 million paper mill in Jiangsu Province by officially changing its name to UPM-Kymmene Paper.
The US$600 million is the largest single investment made by any Finnish company in China to date.
The company, UPM-Kymmene (Suzhou) Paper Industry Ltd Co, is registered and has its headquarters in Suzhou Industrial Park, and its production plant is by the Yangtze River in Changshu, Jiangsu Province.
UPM-Kymmene acquired 49 percent of the shares of the paper mill in Changshu in 1998, and on August 30, 2000, the Finnish paper giant became the mill's sole owner by acquiring the remaining 51 percent.
"The move shows our commitment to the Chinese market and strategy change," said Juha Niemela, UPM-Kymmene's president and chief executive officer.
He said the acquisition was a strategic decision on UPM-Kymmene's part, designed to position this paper mill as a major platform for the development of the company's business in China and other areas within the Asia Pacific region.
Located in the suburbs of Changshu City, 100 kilometers from Shanghai in China's eastern Jiangsu Province, the paper mill sits on a 188-hectare site.
The mill produces 350,000 tons of uncoated and slightly coated fine paper annually, which is mainly used in printing and offices.
The mill site is completely self-contained, with a 100 megawatt power plant, a waste water treatment plant and its own pier along the Yangtze River to allow raw materials and finished paper products to be transported more easily.
"The paper mill and its supporting infrastructure will bring more trade and employment opportunities for Changshu City and Jiangsu Province," said Ji Yunshi, governor of Jiangsu Province.
(China Daily 10/31/2000)
