The government of Rizhao city in Shandong province signed an investment cooperation agreement with Singapore's Royal Golden Eagle (RGE) Group on July 30.

According to the agreement, Asia Symbol, a world leading producer of pulp and paper under RGE, will invest 15 billion yuan ($2.07 billion) into the Rizhao Economic-Technological Development Area to build an integrated production base. The base will have an annual production of 6 million metric tons of pulp and paper and an output value of 40 billion yuan.

The Rizhao municipal government signs a cooperation agreement with the RGE Group on July 30 in Jinan, Shandong province. [Photo/Dazhong Daily]

"We will build production lines for cultural paper, household paper, white card paper and liquid packaging paper. Once completed, the majority of the 2.2-million-ton wood pulp produced by the company per year will be turned into finished products in Rizhao," said Li Runming, Party secretary of Asia Symbol.

This investment is RGE's 27th capital increase in Rizhao since it restructured Asia Symbol in 2005. Over the past 18 years, RGE has constructed China's largest wood pulp production base in Rizhao. It has an accumulative investment of 30 billion yuan. 

"The current global pulp market prices are low, while the downstream paper market is relatively stable. Extending the downstream end of industrial chain helps companies flexibly arrange production based on market conditions and enhance their ability to withstand risks. We value Rizhao's geographical advantages and business environment," Li said. 

Asia Symbol is the largest import port for wood chips in China. It has three unloading berths with a total capacity of 180,000 tons at Rizhao.

A production line at the Asia Symbol (Shandong) Pulp and Paper Co in Rizhao, Shandong province. [Photo/Dazhong Daily]

The wood chips that arrive at the port are directly transported to the company's wood chip yard via conveyor belts. Then, automatic feeding equipment transports the wood chips to the pulp production line and the produced wet pulp can be directly transferred to the newly built household or cultural paper production line for further processing, reducing the intermediate steps of pulp drying, transportation and disintegration. This results in reduced consumption and costs, as well as improved quality control.

The Rizhao Economic-Technological Development Area has provided door-to-door services for the company. Li added that it took only 10 months from the start of construction on the high-end household paper project, to the installation and commissioning of equipment, and then the operation of the first production line.   

Since taking root in Rizhao, Asia Symbol has invested more than 5 billion yuan into environmental protection. It conducted in-depth treatment of flue gas and recycling of waste heat, providing 6 million square meters of winter heating for surrounding residents each year.