Finnish paper company making more investments in China

When China's 22 listed paper mills reported sharp declines in first-half profit, Finnish forest-based bio-industry company UPM Group made two investments of more than 40 million euros ($44.3 million) in its paper plant in Changshu, Jiangsu province, mainly because of rising demand due to the boom in e-commerce and burgeoning economic activity, industry officials and sources said.

The investment will increase the production of label paper and copy paper, a company official said.

"The label paper finishing machine (specialty papers line) investment exceeds 30 million euros, and the copy paper machine (cutting line) was more than 10 million euros. They are the latest two," said Jaakko Nikkila, executive vice-president of UPM Specialty Papers.