Nippon Paper Industries Withdraws from Paper Joint Venture in Northern China
Nippon Paper Industries Co., Ltd.Nippon Paper Industries Co., Ltd. (President: Takahiko Miyoshi)
signed a paper manufacture and sales joint venture agreement with
Chengde Dixian Textile Co., Ltd. in May 2004, to commence construction
of a mill with an annual production capacity of 150,000 metric tons
in the city of Chengde in the Hebei Province of China.
Subsequently, China tightened its monetary policy, and the joint
venture partner Chengde Dixian Textile began to experience financial
difficulties, temporarily suspending production in January 2005.
Later, administrative support helped the company to gradually resume
production and today its performance is rallying.
In the meantime, the two companies consulted seriously with each
other concerning the promotion of the joint venture, but for several
reasons failed to rebuild a relationship of trust. Nippon Paper
Industries reached the conclusion that it would be difficult to
continue this project and decided to withdraw from the joint venture.
The details of the withdrawal are now being discussed with Chengde
Dixian Textile.