(Yicai Global) July 21 -- Chinese paper maker Anhui Shanying Paper Industry Co. [SHA:600567] will spend USD353 million to acquire Nordic Paper Holding AB, a paper producer in northern Europe, in a bid to enter the premium special paper market.

Shanying Paper's Swedish subsidiary, Goldcup 15172 AB, has signed an equity purchase agreement with Nordic Paper's two shareholders to acquire all the equity of the latter for USD 353 million, the parent company said.

Nordic Paper has a total of four paper mills, including three in Sweden and one in Norway, it mentioned. Nordic Paper mainly produces greaseproof and craft paper, and its products are used in the food, construction and chemicals industries. It can produce 500,000 tons of pulp annually.

Shanying Paper said the acquisition will help it enter the premium special paper market characterized by high profitability and technological barriers. Northern Europe has long been at the global forefront in paper making technology and product research and development. Greaseproof paper produced by Nordic Paper boasts the largest share in the European market, making the company the leader in this market segment.

There is a real gap in the Chinese market for premium special paper technologies and products, and the vast potential domestic demand will help create favorable conditions for Nordic Paper to achieve earnings growth in the future, Shanying Paper added.