Apr 15, 2005. /Lesprom Network/. Stora Enso, Finnish paper giant, has recently signed a memorandum of understanding (MOU) with the authorities of south China's Guangxi Zhuang Autonomous Region on construction of tree plantations in Beihai City, Guangxi. According to the MOU, Stora Enso will launch a timber pulp project and build a fast-growing tree base covering an area of 20,000 hectares in the region. Stora Enso will build the timber pulp project jointly with Guangxi Gaofeng Pulp Group. The first phase of the project will has an annual production of 0.5 to 0.6 million tons of liquid packaging paper, including an auxiliary project for annual production of 0.2 to 0.3 million tons of pulp. The long-term target of the Finnish company is to annually produce 1 million tons of paper and 1 million tons of pulp with its tree plantations covering an area of 167,000 hectares. At present, Stora Enso is building the fast-growing tree plantations on an area of 20,000 hectares, and its tree plantations in the region will expand to 120,000 hectares in 2010. Last year, Asia Pulp & Paper Group (APP) from Indonesia also invested in a pulp project to be built in Qinzhou City in Guangxi. The Indonesian company will build a fast-growing tree base with an area of 36,700 hectares. In cooperation with the Qinzhou Forestry Development Co. Ltd, APP will build Qinzhou Jingui Pulp Factory. The first phase project involving an investment of 8.15 billion yuan is now underway. Upon the completion, it will annually produce 0.6 million tons of paper and 0.3 million of pulp, including 0.3 million tons of food paper and 0.3 million tons of at printing paper. According to the development plan, Qinzhou Jingui Pulp Factory will finally have an annual production of 3.1 million tons of paper and board, and 1.8 million tons of pulp. APP will has tree plantations covering an area of 0.6 million hectares. The tree plantations will scatter in 23 counties and districts in Qinzhou, Nanning, Chongzuo and Guigang cities. An official from the regional reform and development commission introduced that APP has a total assets of US$20 billion and produces 6.5 million tons of paper and board annually. So far APP has invested some US$5 billion in China. Stora Enso is an integrated group of forest products, papers and packaging boards and mainly produces high-grade cultural paper, packaging boards and timber products. It registered its Guangxi Stora Enso Company in Nanning in October 2002.