Friday, October 24, 2008

What is going on with Lee and Man and these subsidiaries? Wise Sense, Joint Creation, Top Honor and Worthy Pick?

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.


Mike Buettner said...


"A group of Vietnamese environmentalists and business organizations has raised concerns about the environmental impact of a greenfield integrated mill being built by Lee & Man Paper Manufacturing in the country's southern province of Hau Giang."

Anonymous said...

Hey Buet,why don't you hussel up over to Nam and help those poor saps. Sure a smart guy like you will be welcomed with open arms. LMAO!

Not A Native said...


I'd say Lee and Man is trying to maintain and grow a paper manufacturing business and dealing with tough economic and environmental challenges. If the products they make are a commodity, I'd look into what other producers(competitors) are doing to better understand Lee and Man's specific actions. Clearly, the corporate entities reflect the capitalization structure and the particular desires of the sources of financial capital.

All those corporations are needed to separate the various investors and fix their individual degree of ownership and liability for the different activities and facilities. The names are funny, but clearly selected to hide the identity of the principals.

Rambo said...

Rich, I sure wish you would consider editing out those snide anonymous posts and comments. it seems they don't have the balls to even use a nickname or state who they are.