SWEDEN'S Eka Chemicals AB inaugurated a paper chemicals plant in Guangzhou yesterday to tap the rapidly growing Chinese paper industry and double its presence in the country.
The 4.4 million euro (US$5.8 million) site, with an annual production capacity of 24,000 tons of paper sizing chemicals, will help serve the southern China market.
In 1999 the company established a similar plant in Suzhou in Jiangsu Province with the same capacity, mainly targeting the eastern market.
Company executives said the new plant in the Guangzhou Economic & Technological Development District was strategically located close to the Pearl River Delta port area and can also serve as an export base for other areas in Asia Pacific.
Jan Svard, Eka's president, said the global demand growth for paper was moving to emerging markets like China.
He said China's paper market was growing at an annual rate of five percent, more than doubling the world average, on strong demand.
Eka is a global leader in bleaching technology and paper chemistry with a turnover of 889 million euros last year. It is the pulp and paper chemicals unit of Dutch chemical group Akzo Nobel NV.
"The demand for paper and board in China is among the highest in the world. With the trend to continue, we need to ensure that we remain a leading supplier in the market," Svard said.
He also said the Suzhou facility would start producing paper coatings chemicals next year.
The Guangzhou plant has 15 employees and staff numbers may expand as demand grows, officials said. The Suzhou facility has 90 people as it houses Eka's administration team in China.
Eka also said they are looking to start their own research and development operations on the Chinese mainland.
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