Nine Dragons Paper Profits Soared on Historic High Sales

SEATTLE (Scrap Monster): Nine Dragons Paper (Holdings) Limited announced consolidated annual results for the company and its subsidiaries for the fiscal year ended June 30, 2019.

The press release issued by the company states that it faced several challenges, including complicated economic environment and tightened restrictions by the Chinese authorities with respect to the import quota of recovered paper. Despite these challenges, the company posted record high sales and sales volume during the year. The total sales volume surged by 8.5% to reach 14.1 million tonnes. The total sales were up by almost 3.5% over the previous year. Also, the net debt gearing ratio hit 59.7%- the lowest level over the past decade.

ALSO READ: ND Paper Biron Plant Expansion Receives Major Tax Break From WEDC

Amidst challenges, the company focused on diversifying its raw material sources and expanding its business downstream. Along with making investments in boosting production capacity for recycled pulp, the company has also engaged in acquisition of major packaging business to expand its footprints. This has contributed to revenue growth, the company press release noted.

The aggressive expansions that are in progress in Malaysia, China and the U.S. are expected to raise the Group’s total design capacity for paper and pulp production to 18 million tpa and 1.61 million tpa respectively by the end of 2021. The company had recently carried out a series of major upgrades at its Old Town, Maine mill.