Jul 03, 2014. /Lesprom Network/. Orient Paper, Inc. has ramped up its renovated PM1. Orient Paper has recently commenced commercial production of the newly renovated PM1, producing corrugating medium paper ("CMP")-based packaging paper with specification of 40 to 80 gram per square meter ("g/s/m"). PM1 has successfully ramped up production in the month of June, achieving more than 3,500 tonnes of paper with specification of mostly 60g/s/m, instead of the originally budgeted 1,000 tonnes, as the company said in the press release received by Lesprom Network.

PM1's 40-80g/s/m CMP-based packaging paper products have a wide range of commercial applications. For example, they can be used to sandwich certain insulation materials as a construction material for wall and floor insulation and to manufacture moisture-proof packaging materials for transportation of books and magazines by the publishing industry in China.

The40-80g/s/m light weight CMP is considered a niche product in the packaging paper market and enjoys a higher margin than the conventional CMP and steady demand from end-users while the supply of this special specification CMP is relatively limited. Essentially all of the Company's PM1 products are 60g/s/m CMP used as packaging paper at current stage. However, the Company has begun selling 60g/s/m CMP as insulation liner and may switch to other product specifications based on customer demand or changes in market condition.

While the Average Selling Price ("ASP") for the 60g/s/m packaging paper is lower than that of the 40-50g/s/m insulation liner, which was originally planned for the renovated PM1, the annual production capacity of PM1 is expected to increase from approximately 50,000 tonnes to at least 60,000 tonnes if we continue to ramp up PM1 for producing the 60g/s/m CMP-based packaging paper. With the shift of products and the ramp up, the new PM1 is now expected to contribute approximately $9 million to $11 million to the Company's annual revenue for 2014, instead of the previous estimated range of $7 million to $9 million.

Orient Paper, Inc. is a leading paper manufacturer in North China. Orient Paper produces and distributes three types of paper products namely, packaging paper (corrugating medium paper-based), offset printing paper, and other paper products, including digital photo paper and household/tissue paper.