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Nine Dragons slows pace
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PPI
- Article date:
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July 1, 2008
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Copyright informationCopyright Paperloop, Inc. Jul 2008. Provided by ProQuest LLC. (Hide copyright information)
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ASIA
Asia's largest packaging producer. Nine Dragons Paper (Holdings), may slow the pace of its capacity expansion in China, particularly of recycled containerboard, after a decade of rapid growth.
Beyond 2009, the group has no more containerboard expansions in the pipeline. A spokesman said it is evaluating whether it would be profitable to continue investing in further containerboard capacity in China.
The source reported that soaring costs of raw materials and energy are eroding profitability, and the problem will not go away soon. Meanwhile, the US recession is likely to continue, which will have a negative impact on the group's packaging business.
Nine Dragons is looking at ...
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