Paper

Lee & Man reports positive results

Hong Kong-based Lee & Man Paper Manufacturing Ltd. has reported a profitable first half of 2016 and says it is ramping up new production capacity in the tissue sector.

Lee & Man says it sold some 2.67 million tons of paper products in the first half of 2016, earning revenue of $1.08 billion. The company says its first half 2016 net profit of $184 million marked a 30.5 percent improvement in its earnings per share compared with the same period in 2015.

Company Chairman Dr. Raymond Lee says room for growth in papermaking in China and East Asia remains. “The demand for packaging paper in China is expected to grow steadily in the long run,” he stated in early August comments accompanying Lee & Man’s earnings. “Although paper consumption per capita in China has been increasing year after year, it is still way behind that of developed countries. Hence, it is obvious that the market still has plenty of room to develop in the future.”

Lee also expressed optimism that efforts to rein in excess paper and board capacity in China are beginning to take hold. “To address the overcapacity problem and environmental issues of the paper industry, the PRC (People’s Republic of China) government has stepped up ousting obsolete production capacities to gradually correct the excessive supply situation, and that has boosted the bargaining power of industry players,” he said, adding that the company “is confident about the outlook of the paper industry.”

While Lee & Man traditionally has been associated with producing packaging grades, the company continues to expand its presence in the tissue industry. Currently, Lee & Man has four tissue paper production lines in operation in Chongqing, China, that can produce 135,000 tons, with more tissue lines slated to begin production soon.

When all of its tissue production lines are operating, Lee & Man says its annual tissue paper production capacity will reach 575,000 tons. Once that occurs, the company says it “will be able to claim its place among the top five tissue paper manufacturers in mainland China.”