Indonesian billionaire Sukanto Tanoto, through his flagship company Royal Golden Eagle (RGE), is set to invest 11 billion yuan (US$1.5 billion) in a lyocell fibre plant in eastern Shandong province, China. This investment follows RGE’s recent acquisition of Vinda International, a tissue-paper manufacturer, for US$3.3 billion.
The lyocell fibre plant, to be located in Jining city, will have an annual production capacity of 600,000 tonnes. Lyocell is a non-toxic, biodegradable semi-synthetic fibre used in paper and textile manufacturing.
RGE is optimistic about Shandong’s growth prospects, citing the province’s strategic location and supportive business environment. The company sees this investment as an opportunity to expand its presence in China, particularly in the paper industry.
RGE has been operating in China since 2005, with a paper manufacturing plant in Rizhao city. In 2020, the company began producing lyocell with an annual capacity of 20,000 tonnes.
Earlier this month, RGE completed the privatization of Vinda International, taking the company off the Hong Kong stock exchange in August. Tanoto paid HK$26.1 billion (US$3.3 billion) to acquire 92.3% of Vinda from other shareholders.
Vinda’s net profit plunged 64% to HK$253 million in 2023 compared to the previous year due to cost inflation and increased competition.
