Global paper making giant Stora Enso yesterday signed an agreement with Shandong Huatai Paper to set up a joint venture in East China's Shandong Province to produce a new kind of newsprint.

The joint venture, with a total investment of US$100 million, is expected to produce 200,000 tons of supercalendered (SC) publication paper annually when it starts production next year, according to Stora Enso, which holds 60 per cent of the joint venture.

The production SC paper, which is based on recycled fibres, will fill in a hole in the market and upgrade China's paper making industry, said Li Jianhua, president of the Shanghai-listed Huatai Group.

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