Asia Pulp & Paper (APP)'s expansion projects in the Qinzhou Port area of China (Guangxi) Pilot Free Trade Zone start construction on May 30. [Photo by Zhai Liqiang/China News Service]

Construction on Asia Pulp & Paper (APP)'s expansion projects in the Qinzhou Port area of China (Guangxi) Pilot Free Trade Zone started on May 30.

Upon operation, APP will have 1.8 million metric tons of additional production capacity of high-end paperboards and 750,000 tons of chemi-thermomechanical pulping.

The projects were included in Guangxi's major industrial projects, with a total investment of 11.88 billion yuan ($1.77 billion). The one for adding 1.8 million tons of high-end paperboard production capacity cost 8.78 billion yuan and its first paper machine has already started operation in January. 

APP entered the Chinese market in 1992 and Southwest China's Guangxi Zhuang autonomous region has long been APP's major base for strategic development due to its abundant forestry resources. 

Wang Lexiang of APP China noted that the year 2022 marked the 30th anniversary of APP's launch in the Chinese market, adding that the group has been making full use of port resources and geographic advantages in Qinzhou for Guangxi Jingui Pulp & Paper's development, a subsidiary of APP.

The second-phase construction of Guangxi Jingui Pulp & Paper started in 2019 and the company is expected to have a total pulp paper production capacity of over 4.3 million tons upon completion.

The new phase will aim at deepening core competitiveness, such as production innovation, upgrading industrial support and innovative service capacity, as well as deepening commercial trade exchanges and cooperation between Qinzhou and countries alongside the Maritime Silk Road, added Wang.

Of note, APP is planning a 28.3-billion-yuan third phase of the company to firmly grasp opportunities brought by the Regional Comprehensive Economic Partnership (RCEP).