Wood pulp, reclaimed pulp, de-inked pulp and recycled white paper are the principal raw materials for the production of the Group’s products. For the year ended 31 December 2012, wood pulp accounted for the largest proportion of the raw materials the Group uses (by weight), followed by de-inked pulp, reclaimed pulp, and recycled white paper.
The Group intends to utilise the additional capacity to meet its increasing demand for de-inked pulp, with an aim to gradually replace reclaimed pulp with de-inked pulp and reduce the proportion of wood pulp used in its production, thereby further lowering its overall production and raw material costs. This move will also reduce the Group’s dependence on wood pulp in its production process.
De-inked pulp is purified and reusable pulp produced by removing ink and colour from recovered paper. The Group has started to use de-inked pulp in its production since 2007 with its first de-inking facility at the production based in Jinjiang, Fujian
Province, China. As at 31 December 2012, the Group has deinked pulp production facilities with annual production capacities aggregating 90,000 tons.
Youyuan International Holdings Ltd. is a leading wrapping tissue paper manufacturer in China principally engaged in the manufacturing and sale of special paper products. Its principal
products include wrapping tissue paper, wall paper backing paper, copy paper and other products.
