South Korea's Daeyang Paper Approves KRW 190.4 Billion Papermaking Equipment Investment

en.Wedoany.com Reported - On October 15, the board of directors of South Korea's Daeyang Paper Mfg. approved an investment plan of KRW 190.4 billion in papermaking machinery and equipment, involving the procurement of a new PM-9 paper machine and related machinery facilities for resuming production at its plant. Equipment suppliers include Finland's Valmet, with machinery installation scheduled for completion by March 31, 2029. The company announced the investment decision on October 16 through South Korea's Financial Supervisory Service electronic disclosure system. The amount involved is equivalent to 20.63% of the consolidated total assets of its parent company, Shindaeyang Paper, as of the end of 2025.

Daeyang Paper Mfg. mainly produces corrugated base paper and corrugated boxes. Its Ansan plant suspended production after a fire on October 12, 2020. Shindaeyang Paper's annual operating reports show that before the suspension, the plant had a daily production capacity of approximately 1,200 tons of corrugated base paper. Operating materials for the first quarter of 2026 continue to list the plant as a suspended facility. The PM-9 equipment procurement is directly related to the plant's production resumption plan.

According to the asset acquisition report disclosed by the company, the KRW 190.4 billion represents the estimated acquisition amount for newly added papermaking machinery and other equipment, excluding approximately KRW 39.55 billion in investment for buildings and related original assets. The machinery and equipment purchase price is to be paid in cash, with funding sources including the company's own funds and external financing; specific payment timing and terms will be executed in accordance with supply contracts. The total equipment procurement amount may be adjusted depending on the implementation of the investment.

The disclosed counterparties include Valmet and other equipment suppliers, with subsequent supply contracts to separately determine the counterparties and implementation arrangements. The announced date of March 31, 2029 is the scheduled completion date for equipment installation, and the equipment will subsequently be used to restore operation of the papermaking production system.