Orient Paper, Inc. Announces Temporarily Suspend All of Its Production Lines Due to Mandated Restriction/Suspension of Natural Gas Supply
January 30, 2018 at 02:45 am IST
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Orient Paper, Inc. announced that it will temporarily suspend all of its production lines due to mandated restriction/suspension of natural gas supply (the "Restriction") for all natural gas consumption industries, including the paper manufacturing industry in order to secure adequate natural gas to households uses in urban and rural areas in Hebei Province. The restriction is in accordance with the second alert over supply shock of natural gas which has been in place since November 27, 2017. Multiple cities in the province including Baoding and Xingtai where the Company's facilities located have successively issued notices about the suspension of natural gas supply to their industrial users. The suspension is expected to last into February, 2018, when the company expects the restriction to be eased. The company is going to implement equipment maintenance during the temporary suspension of production. The temporary suspension of production will impact the company's current corrugating medium paper, offset printing paper and tissue paper operations.
IT Tech Packaging, Inc., formerly Orient Paper, Inc. is a holding company for the Hebei Baoding Orient Paper Milling Company Limited (Orient Paper HB), a producer and distributor of paper products in China. The Company is engaged in production and distribution of four categories of paper products: corrugating medium paper (CMP), offset printing paper, digital photo paper and tissue paper products. The Company, through Baoding Shengde Paper Co., Ltd. (Orient Paper Shengde), is engaged in production and distribution of digital photo paper. The Company operates through two segments: Orient Paper HB, which produces printing paper and CMP, and Orient Paper Shengde, which produces digital photo paper. CMP is used in the manufacturing of cardboard. The Company has over two corrugating medium paper production lines, including PM6 and PM1. The Company also produces finished tissue paper products that are marketed and sold under the Orient Paper brand.