Sep 12, 2005. /Lesprom Network/. Nippon Paper Group Inc. said Monday it has completed its withdrawal from its joint venture with China's Chengde Dixian Textile Co. In April, Nippon Paper said it had decided to pull out of the joint venture following Chengde Dixian Textile's financial problems resulting from China's fiscal policy tightening. Nippon Paper Group will incur a loss of about JPY1 billion ($9.1 million) from the withdrawal, a company spokesman said. However, "our first-half earnings forecast has already factored that in," he added. In May 2004, Nippon Paper and Chengde Dixian Textile signed an agreement to manufacture and sell paper together. The companies began construction of a paper manufacturing plant in Hebei Province, northern China, with an annual output capacity of 150,000 metric tonnes. In the withdrawal, Nippon Paper sold its stake in the joint venture to Chengde Dixian Textile's Japanese subsidiary, New Century Trading Co., the Japanese papermaker said in a statement Monday.