Korea's Donghae Pulp breaks ground for first paper machine

SEOUL, South Korea, Nov. 4, 2009 (Press Release) - Donghae Pulp, the subsidiary of Moorim group and the only market pulp producer in South Korea, held a groundbreaking ceremony for the installation of a 450,000 tonne/yr coated fine paper machine at its mill in Ulsan city on November 2. The new paper machine scheme will cost approximately Won 500 billion ($421 million) and make the facility fully integrated when the machine comes on stream in 2011.

Donghae Pulp will be renamed Moorim Pulp and Paper (Moorim P&P) on January 1, 2010.

Dong Wook Lee, the chairman of Moorim group said at the ceremony, "We are not just installing a new paper machine. We are going to build the first and a unique pulp and paper integrated mill in Korea. This is very monumental moment in the history of Korean paper industry."

By June 2011, when integration is completed, Moorim group will be able to produce about 1.2 million tonnes of printing/writing paper per annum, which include capacity of Moorim Paper, Moorim SP and Moorim P&P. Also, this integration will maximize synergy effect at Moorim's paper manufacturing facilities through optimizing product mix that will meet various needs of customers.

In Jung Kim, the CEO of Moorim group said, "To have a global competitive advantage, having the pulp and paper integrated mill is essential." He added, "The integrated facility will propel Moorim group to become one of the top global pulp and paper companies."