Schweitzer-Mauduit International announced in July the formation of a joint venture with CNTC to establish a facility for tobacco-related papers in Guangdong Province.

The joint venture would produce cigarette paper and porous plug wrap in partnership with the China National Tobacco Corporation (CNTC), the principal operating company under China's State Tobacco Monopoly Administration (STMA). CNTC and a wholly-owned subsidiary of Schweitzer-Mauduit would each own 50 per cent of the joint venture facility.
The joint venture would build a new state-of-the-art paper mill, with two paper machines and a total annual production capacity of approximately 18,000 tonnes. The new mill would focus on high quality cigarette paper and porous plug wrap, which would support STMA's move to lower tar delivery levels in cigarettes for the Chinese market.
The facility would be located near Jiangmen, Guangdong province, with construction expected to take approximately two years following receipt of governmental approvals. Project spending, including capital expenditures and working capital requirements, is expected to total approximately USD 100 million. Papeteries de Mauduit (PDM), a French subsidiary of Schweitzer- Mauduit, would provide technical support and project management.