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MEP clears decks for APP arm float

By Fu Jing (China Daily)
Updated: 2009-06-19 09:53

The Ministry of Environment Protection will take tough measures to phase out small-scale and polluting papermaking companies.[CFP]

China's environmental watchdog has finally cleared the way for paper giant APP's subsidiary, Gold East Paper, to list on the stock market. The move comes just months after several environmental organizations criticized the company for lax pollution standards.

Wu Sengfong, president of Gold East Paper (Jiangsu), revealed yesterday that the company had obtained the go-ahead from the Ministry of Environment Protection after a final assessment of its pollution record during the previous months.

The ministry has, however, so far not confirmed whether it had cleared the company for an eventual listing or not. All companies have been required since 2008 to get the environment ministry's consent before listing on the stock market.

"We obtained the approval yesterday (Wednesday)," Wu confirmed to China Daily in an interview on the sidelines of the Paper Industry Sustainability Forum held in Suzhou. However, the worsening financial crisis and sluggish stock market have delayed the listing plan, Wu said. "Perhaps we will list it early next year."

Wu admitted that one or two paper factories under APP-China had emitted more pollutants and wastewater compared with national standards in the past. "But we have corrected our mistakes," he said. "Just because we once made a mistake doesn't mean we are going to do it forever."

In August last year, several environmental organizations such as the Global Village and Greenpeace submitted a report to the ministry expressing their concern over pollution by Gold East Paper.

After months of investigation, the ministry reported in March that the company had largely complied with prevailing environmental standards.

China's papermaking sector has been generally labeled as a "polluting" industry that contributed to nearly 10 percent of the country's water pollutants.

"However, companies of such scale should not be blamed too much," said Zhao Wei, secretary-general of the China Paper Association at a panel discussion yesterday. "They have upgraded technologies and facilities."

Wu agreed, saying his company had upgraded its recycling plant and production facilities during recent years.

Zhao said China has about 400 large-scale paper factories which yield about 80 percent of the industry output, but which release just one-third of the total pollutants.

However, the country has about 3,000 small paper factories, the main sources of wastewater pollution and emissions. "They just contribute 20 percent of the total paper production in China, but cause lots of environmental headaches," he said.

Feng Bo, a division director at the Ministry of Environment Protection, vowed the government would take even tougher measures to merge or phase out such small-scale and polluting papermaking industries.

"Even against the backdrop of the financial crisis, we are determined to do so," said Feng. "Tougher environmental regulation can guarantee our long-term environmental welfare."

(For more biz stories, please visit Industries)

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