(Yicai Global) July 18 -- Eastern China's Sun Paper Industry Joint Stock will invest more in its Laos unit to overcome Chinese restrictions on waste paper imports.

Sun Paper Industry Joint Stock will invest additional USD637 million into its Savannakhet unit to make more pulp and wrapping paper out of recycled resources, the Shandong province-based firm said in a statement. Laos' Ministry of Planning and Investment already gave the project, which uses imported American and European waste paper, the green light.

The Chinese government has tightened its limit on waste paper imports to protect its environment, resulting in companies such as Sun Paper to move production overseas.

With the expansion of the Laos factory, the firm's annual capacity will be lifted to 1.2 million tons of paper products. A pulp line will make up one-third of the total production, while two wrapping paper lines will cover the rest. The project is expected to generate sales revenue of USD642 million per year and a net profit of USD84.2 million. 

Editor: Emmi Laine