Nine Dragons Paper to hike product prices

Nine Dragons Paper (Holdings), the largest container board producer in China, said on Tuesday that higher raw material costs would force the company to increase product prices.

Due to the Chinese government's stringent efforts to reduce recovered paper imports (the raw material of container board), the price of the recovered paper has been rising, said Cheung Yan, chairwoman of Nine Dragons Paper.

To make up for raw material needs, the company will purchase more recovered paper domestically, and at the same time set up factories abroad for recycled pulp manufacture, said Cheung.