Lot's of movement with Lee and Man lately. I can't figure out what they are doing.
China's Lee & Man Paper Manufacturing has sold its two indirectly wholly-owned Colorado-based subsidiaries, which own the US pulp producer Evergreen Pulp, for HK$200 million ($26 million).
The two subsidiaries, HKLM and USLM, have been snapped up by the British Virgin Islands-based firm Worthy Pick Group. Lee & Man said the deal was completed immediately after signing the agreement on October 15. The company estimated the gain from the sale of the assets at HK$1 million.
Evergreen Pulp has a market pulp mill in Samoa, California, with a capacity of over 200,000 tonnes/yr of softwood kraft pulp.
In a press conference in Hong Kong on October 16, Lee & Man's CEO Raymond Lee said the sale was a strategic move, allowing the company to focus on its operations in China and Vietnam.
Vietnam PM start postponed
But the startup of its greenfield mill in Hau Giang province in Vietnam will be pushed back one year from 2009 to the second half of 2010, he added. The CEO had earlier confirmed the delay while speaking at the European Paper Recycling Conference in Amsterdam, the Netherlands, on October 6.
The plant will house a 420,000 tonne/yr recycled containerboard machine, PM 15, and a 150,000 tonne/yr bleached hardwood kraft (BHK) pulp line.
The $630 million Hau Giang scheme is a joint venture of Lee & Man and another Chinese firm, Wise Sense Investments, and will be managed by a holding company called Joint Creation.
The Hong Kong-listed Lee & Man has a 75% stake in Joint Creation via its indirectly wholly-owned subsidiary Top Honor Industries, while Wise Sense holds the rest.
Pulp line online at Chinese site
Meanwhile, however, Lee & Man has started commercial production on a 150,000 tonne/yr BHK and bamboo pulp line at its mill in China's southwestern municipality of Chongqing, following successful trial runs that began in late July.
The facility already housed a 300,000 tonne/yr recycled containerboard machine, PM 13, which came online in early July.