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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 March 16 , 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 March 16, 1999, by
Dransfield China Paper Corporation.
For more information
Strategic Financial Relations Limited
Richard Tsang /Anita Cheung/Joyce Lam
Tel: 852 2527 0490 Fax: 852 2804 2789
DRANSFIELD CHINA PAPER CORPORATION ANNOUNCES
COMMENCEMENT OF COOPERATION WITH
JIANGMEN SUGARCANE CHEMICAL FACTORY
(Hong Kong, March 16, 1999) -- Hong Kong-based Dransfield China Paper
Corporation (NASDAQ: DCPCF) ("Dransfield") today announced that its venture with
Jiangmen Sugarcane Chemical Factory (Group) Corporation Ltd. ("Jiangmen
Sugarcane"), started operations.
Dransfield is working with Jiangmen Sugarcane, an A-share listed
company in Shenzhen, PRC, to manufacture quality tissue paper and de-inked pulp
at Jiangmen Sugarcane's paper mill in the PRC. Dransfield is providing the raw
materials and its technical know-how in the manufacture of these products.
Production capacity has already reached 5 tonnes per day.
Commenting on the announcement, Horace Yao, Chairman & CEO of
Dransfield, said, "Our cooperation with Jiangmen Sugarcane has started smoothly.
Because of this cooperation with Jiangmen Sugarcane and the use of its
facilities, we are able to meet our short-term raw materials requirements
without having to rely totally on imported products. At the same time, the
import duties have been reduced with the importing of waste paper instead of
jumbo paper rolls. The resulting tissue paper and de-inked pulp produced under
the Dransfield brandname will be of top quality, reinforcing our excellent
reputation in the industry while increasing our market share. This venture with
the Jiangmen Paper Mill demonstrates Dransfield's ability and expertise in the
paper mill industry."
"By speeding up the production of tissue paper, using jumbo rolls
produced by Jiangmen Paper Mill, we have eliminated the need for fund raising to
ensure the completion and construction of our new plants. This cooperation also
ensures our short-term supply of tissue paper for our two converting facilities
in the PRC. Finally, this joint venture enables us to test the feasibility of
recycled pulp in the market while generating income ahead of the completion of
recycled pulp facilities at our two paper mills under construction." Mr. Yao
continued.
Dransfield's Paper Mill No. 1 in Guangdong Province has completed the
construction of its converting facilities in Conghua. Its converting facility in
Paper Mill No. 2 in Jiangyin Huaxi, Jiangsu Province, is expected to complete
its facility set-up in March 1999.
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"The consumption of tissue paper products in China has grown rapidly in
the last few years," Mr. Yao said "We believe the cooperation with Jiangmen
Sugarcane will allow us to be more competitive and cost-effective while fully
exploring the potential of the PRC market."
The Jiangmen Sugarcane Chemical Factory (Group) Corporation Ltd. was
founded in 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 sugar and paper industry. It has 14 plants, mills and
subsidiary companies, manufacturing products ranging from over 20 different
kinds of sugar to pulp board, paper, yeast, alcohol, raw pharmaceuticals and
steel materials among others.
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. Expanding into a major force
in the PRC paper products industry, the Company has recently embarked on a
significant growth program that includes the construction of four strategically
located pulp and paper mills in the PRC. Upon completion, the Company will be a
full 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.
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: March 16, 1999
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