Apr 26, 2005. /Lesprom Network/. Nippon Paper Industries Co. said it will abandon a plan to produce paper in Hebei Province, northeastern China, in a joint venture with a local concern, because of the venture partner's fund shortages. Nippon Paper Industries, part of Nippon Paper Group Inc., is expected to lose part of its investment of some 3.5 billion yen ($33 million) in the venture, which it set up in May jointly with Chengde Dixian Textile Co. The new company already began constructing a plant in the city of Chengde that would have an annual production capacity of 150,000 tons of paper, but the construction was far behind schedule because the Chinese partner had difficulties raising funds and was forced to temporarily halt its own production, Nippon Paper officials said. Nippon Paper tried to continue the joint production plan through talks with Chengde Dixian, but the two companies failed to rebuild mutual confidence, with the Chinese company rejecting Nippon Paper's request for the submission of a business rehabilitation plan, according to the officials.