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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 26 , 1999
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Dransfield China Paper Corporation
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(Registrant's name)
8th Floor, North Wing, Kwai Shun Industrial Centre
51-63 Container Port Road, Kwai Chung
New Territories, Hong Kong, China
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(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.]
Form 20-F X Form 40-F
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[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.]
Yes No X
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[If "Yes" is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b):82- ]
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The following sets forth a press release issued on January 25, 1999, by
Dransfield China Paper Corporation.
Agreement with Jiangmen Sugarcane Chemical Factory
Announced by Dransfield China Paper Corporation
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Manufacturing of Tissue Paper and Paper Pulp
Starts to Contribute Revenues
(Hong Kong, January 25, 1999) -- Hong Kong-based Dransfield China Paper
Corporation (NASDAQ: DCPCF) ("Dransfield") today announced the signing of an
agreement with Jiangmen Sugarcane Chemical Factory (Group) Corporation Ltd.
("Jiangmen Sugarcane"), an A-share listed company in Shenzhen, PRC, to jointly
produce quality tissue paper and de-inked pulp.
According to the agreement, Dransfield will work in conjunction with
Jiangmen Sugarcane in the manufacture of tissue paper and de-inked pulp under
the operation of Jiangmen Paper Mill, a subsidiary of Jiangmen Sugarcane, in the
PRC. Dransfield will provide the raw materials and utilize its technical
know-how in the manufacturing of these products. The expected annual production
capacity of the tissue paper and de-inked pulp are up to 5,400 metric tonnes and
33,000 metric tonnes respectively.
Mr. Horace Yao, Chairman & CEO of Dransfield China Paper Corporation,
said, "We are very pleased to finalize this agreement with Jiangmen Sugarcane.
Through this close cooperation with Jiangmen Sugarcane, the Group will be able
to meet its short-term raw materials requirements without totally relying on
imported products, by utilizing the existing facilities of Jiangmen Paper Mill.
The tissue paper and de-inked pulp produced under the Dransfield brand name will
be of top quality, gaining an excellent reputation in the industry and
increasing our market share."
"This cooperation will ensure the Group's short-term supply of tissue
paper for its two converting facilities in the PRC. In addition, it will also
allow the Group to test the feasibility of recycled pulp in the market while
generating income ahead of the completion of recycled pulp facilities at its two
paper mills under construction. The cooperation is beneficial to both groups and
will contribute positively to both of us" Mr. Yao concluded.
The Group's Paper Mill No.1 in Guangdong Province, has completed the
construction of its converting facilities in Conghua, while its converting
facilities in the Paper Mill No.2 in Jiangyin Huaxi, Jiangsu Province, is
expected to complete the set-up of these facilities in March 1999.
The Jiangmen Sugarcane Chemical Factory (Group) Corporation Ltd. was
founded on December 28, 1992 and has been listed on the Shenzhen Stock Exchange
since 1994. It is the first A-share listed Sugar and Paper Company in the PRC
and has strong experience in the
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sugar and paper industry. The Group has 14 plants, mills and subsidiary
companies, manufacturing products ranging from over 20 kinds of sugar, to pulp
board, paper, yeast, alcohol, raw pharmaceuticals, steel materials, etc.
Dransfield China Paper Corporation is a Nasdaq-listed, Hong Kong-based
Company primarily engaged in the brokering and distribution of a variety of
paper products in China and Hong Kong. To become a dominant force in the PRC
paper products industry, the Company has recently embarked on a major expansion
program that includes the construction of four strategically located pulp and
paper mills in the PRC. Once completed, the Company will be a fully
vertically-integrated paper company, engaged in the production and sale of
recycled pulp, the production and sale of jumbo paper rolls, the conversion of
jumbo paper rolls into tissue paper products, and the distribution of tissue
paper products under the Company's own brand name. The Company expects its first
two mills in the Guangdong and Shanghai regions of the PRC to begin production
during 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DRANSFIELD CHINA PAPER CORPORATION
By: /s/ THOMAS J. KENAN
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Thomas J. Kenan, Director
Date: January 26, 1999
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