23 November 2004 – Helsinki (FIN): UPM Kymmene is withdrawing from its planned joint venture in Zhanjiang in the Chinese province of Guangdong, the company has announced.
The Finish paper manufacturer had planned to investigate and make preparations for wood supplies for a possible future pulp mill as part of a joint venture with China Fuxing Pulp and Paper (who like UPM would own a 45 per cent share) and Guangdong Finance Investment Holding.
But the company allegedly pulled out of the project as a result of studies of local conditions and the availability and cost of wood for a modern large-scale pulp mill.
The move will not affect UPM’s Changsu mill investment programme in China, which the company is still reviewing closely before announcing financial or time commitments.
