New Oriental Energy buys paper recycling company Xingyang

New Oriental Energy buys paper recycling company Xingyang

Greentech Lead
: New Oriental Energy & Chemical has acquired Xingyang, a waste
paper recycler and manufacturer of corrugated board in China.

In 2011, Xingyang recycled and sold 33,000 tons of waste
paper which generated revenue of $8.41 million.

In the same period, Xingyang manufactured and sold 45
million square meters of corrugated paperboard, and 20,000 tons of corrugated
papers and carbon board, generating revenues of $30.63 million.

“We experienced significant progress in 2011 with
record revenues, and rapid growth in particular in our recycling business.
During the year, our recycled paper sector accounted for over 21.5 percent of
our revenues for the first time, a percentage we anticipate will be higher in
the current year as rapid growth in this sector continues,” said Zhang
Tongde, chairman of Xingyang.

Since 2009, China has surpassed the US and become the
biggest manufacturer and consumer of paper and paperboard, accounting for over
24 percent of world consumption.

Though average paper and paperboard consumption achieved 148
percent growth in China over the past 10 years, Chinese paper and paperboard
consumption volume to date has been only 25 percent of consumption in the US.

Over the past five years, corrugated paperboard achieved an
18-20 percent annual growth rate and, in 2013, it is expected China will
surpass the US and become the biggest market for corrugated paperboard.

Currently, the paper recycling rate in China is only 38
percent. This is considerably lower than the worldwide average of 47 percent,
reaching to more than 70 percent in the developed countries.

“We are extremely pleased to be able to bring to US
investors our growth story. We will continue to grow our traditional corrugated
paper and paperboard manufacturing and sales business, which we believe will be
driven by continuing increasing demand in China. At the same time, we expect to
also greatly expand our paper recycling business, which will be driven by
growth in both tonnage and revenue in 2012 and beyond,” Zhang added.

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