The crumpled paper business

China Paper is the largest papermaking state-owned company in China. The company is listed on the Singapore Stock Exchange, with a stock market value of over € 10 billion.

China Paper entered Romanian market by taking over the Someș SA company in Dej. The history of the Pulp and Paper Factory in Dej is similar to other factories in Romania, except that here the Chinese gave a ”death blow”.

Someș SA was privatized by the State Property Fund in 2000 and was taken over by Hovis GmbH Vienna following a competitive tendering. Bankrupt, the Austrian company was absorbed by MFC Commodities GmbH in 2002. A year later, because they did not reach an agreement with Romania authorities, the Austrians abandoned the business and withdrew.

In 2004, the Romanian Commercial Services Group, sponsored by Ștefan Vuza, took over the Plant through A1 Impex SRL, which it took even further down. In 2010, a Memorandum of Understanding was signed between Someș SA Dej and Avic International Holding Corporation of China on about € 500 million investments, both in the refurbishment of the plant and in increasing its production capacity.

A 204 meters high tower was taken down in order for the Chinese to come to Dej. In vain. Source: adevarul.ro

But in 2011 the Chinese Ministry of Foreign Affairs appointed a new company to continue the partnership with SC Someș SA Dej, i.e. China Paper. It has pledged to invest € 350 million in the plant. However, the takeover was never made and SC Someş SA went bankrupt in 2013.

 

Read more about the Chinese companies in:

Ukraine

Moldova

Bulgaria