Packaging

China Shengda Packaging Group Completes Paper Mill Construction

Tuesday 18. June 2013 - Mill to Extend the Company's Scope of Operations via Vertical Integration

China Shengda Packaging Group Inc. (NASDAQ: CPGI) (the “Company”), a leading Chinese paper packaging manufacturer, today announced that its wholly operating subsidiary, Jiangsu Shuangsheng Paper Technology Development Co., Ltd, has completed the construction of a paper mill and officially gone into production. The paper mill is located in Sheyang County, Jiangsu Province with annual raw paper production capacity of 150,000 metric tons.
Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging Group commented, “The completion of the paper mill is an important milestone for the Company. As raw paper constitutes a significant portion of our cost of goods sold, we expect the addition of the paper mill to enable us to more effectively manage our production costs and control the supply and quality of our raw materials. Once fully ramped, we believe the paper mill will drive meaningful growth for our business and further sharpen our competitive edge as a leading player in the paper packaging market.”