Sao Paulo, Brazil, 18 Oct – Brazil is expected to become the largest exporter of paper pulp to China within the next three years overtaking Indonesia, the chairman of Nine Dragons Paper, Ming Ching Liu said in Sao Paulo Tuesday.
“China uses an increasing amount of eucalyptus pulp and so the expansion of production taking place in Brazil and Uruguay will easily be absorbed by China,” said the chairman of one of China’s largest paper manufacturers.
Nine Dragons, which was set up at the beginning of the 1990s is not a big purchaser of eucalyptus pulp from Brazil.
In fact its main source of raw material is recycled paper, as it provides cardboard boxes to large companies such as Nike and Sony.
However, the chairman left a positive message for Brazilian producers. “Nine Dragons will buy more pulp from Brazil.”
He said that demand in China remained strong, due to the need for the country to consumer 2.5 million extra tons of pulp per year.
In 2006, consumption of pulp rose 17 percent year on year, “and this year the rise should be the same.”
Nine Dragons is currently worth some US$14 billion. The company expects to increase its production from 5.3 million tons to approximately 10 million tons by 2009. (macauhub)