NEW YORK — Guilin Paper, Inc., a manufacturer of paper products and wood pulp in Guangdong and Guangxi provinces in China, announced Monday its subsidiary, Guangxi Forestry Lipu Paper Co. Ltd., formed an agreement with Dongguan Dabu Paper Manufacturing, Inc. to increase its supply of wood pulp to Dabu Paper.
Dabu Paper is a manufacturer of paper packaging in southern China, with an annual production capacity of more than 300,000 tons. Under the agreement, Lipu Paper would supply up to 20 percent of the 60,000 tons of pure wood pulp Dabu Paper requires to maintain its current production levels.
'Wwe are very pleased to have entered into this strategic agreement with Dabu Paper. Part of our overall strategy is to continue to expand sales of higher profit margin products, improve paper quality and expand our geographic reach. We believe this strategy will enable us to acquire a larger customer base and increase market share. This agreement is a positive first step in this direction and one which we believe will have a significant impact on our future wood pulp revenues which in turn will have a positive effect on our financial results as a whole,'' said Fangde Zhang, chief executive officer of the company.