Jun 07, 2005. /Lesprom Network/. Hebei PanAsia Long-Teng Paper Co., Ltd (HPLC) has begun trial runs on the new 330,000 tonnes/yr newsprint machine at its Hebei mill in Zhaoxian County in the Hebei province, some 280 km southwest of Beijing. The first reels of the new paper machine were produced more than 4 weeks ahead of schedule on May 31, 2005. The machine is fully commissioned and commercial quality output on the machine is expected by the end of June. HPLC is an 80%-20% joint-venture between Pan Asia Paper Co. Pte Ltd of Singapore and Hebei Longteng Paper Corporation. PanAsia Paper is in turn a 50%-50% joint venture between Abitibi-Consolidated Inc. of Canada and Norske Skog of Norway. "We are very pleased with our accomplishments to-date," said Pan Asia Paper President and CEO, Andre Van Hattum. "The project has been completed within the original budget of $300 million, which is less than $1,000 per tonne of production capacity," added Van Hattum. The Metso Paper machine, which is the largest in Asia and third largest in the world, is 8 meters wide with a design speed of 2,000 meters per minute. The machine will produce high-quality standard newsprint from 100% recovered paper. The target markets are Beijing, Tianjin and the Hebei province with about 70% of the capacity expected to be delivered to customers within the Greater Beijing area. "The Hebei mill solidifies PanAsia's presence in China as the most profitable and largest producer of newsprint", said Jan Oksum, President and CEO of Norske Skog. "With the completion of this project, PanAsia Paper also becomes the largest newsprint supplier in the Far East with a total capacity of almost 1.8 million tonnes per year. Combined with our already strong position in China through SPP (Shanghai PanAsia Potential Paper), we will be able to support and profit from the growth in the world's fastest developing region for newsprint consumption," Oksum added. "China promises the strongest demand growth for newsprint in the world over the next ten years and the overall strategy of PanAsia Paper in China is to become the leading local supplier. Being a local supplier means we are able to service our customers efficiently and cost-effectively with the best possible quality," said John W. Weaver, President and CEO of Abitibi-Consolidated.