The Chinese government ordered several companies from different sectors to stop production during two weeks in order to reduce air pollution when the Asia Pacific Economic Forum (APEC) in Beijing took place. Orient Paper is among these companies.
Orient Paper suspended production at its Baoding mill, from 30 October to 12 November.
More than 2,300 companies from the pulp and paper, cement, glass, steel, and chemicals sectors have had to shut or scale down operations for the period on government orders, according to Euwid Pulp & Paper.
Orient Paper produces and distributes three categories of paper products: packaging paper (corrugating medium paper-based), offset printing paper, and other paper products, including digital photo paper and household/tissue paper that the company is currently expanding into.
With production operations based in Baoding in North China's Hebei Province, Orient Paper is located strategically close to the Beijing and Tianjin region. The company cautions that this unplanned suspension may potentially reduce fourth quarter revenue by $6 million to $8 million when compared to previously issued guidance.
