International Paper Co. signed an agreement to set up a joint venture firm in China to produce coated paperboard.
According to published reports both partners signed the agreement on Aug. 31 and will invest $480 million in the venture.
The U.S. firm is also in talks to buy 50 percent of Sun Paper's coated paperboard production assets, he said, though he declined to provide further details.
State media have said Sun Paper, based in the eastern coastal province of Shandong, has two coated paperboard production lines capable of churning out 420,000 metric tons a year.
Both firms were also conducting a feasibility study to invest a further $160 million for a third production line with annual capacity of 300,000 metric tons.
Shandong Sun Paper is the fourth-biggest paper making company in China, state media have said.
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