Finnish pulp and paper manufacturer Stora Enso has received approval from the Chinese National Development and Reform Commission (NDRC) to launch its integrated mill project in Guangxi, China.
Set to be launched in two phases, the latest move will enable the company to accelerate access to the growing Chinese market.
Initially, the company will build a consumer board machine, which is set to be operational in the beginning of 2016.
Stora Enso Renewable Packaging Division head Mats Nordlander said the investment will produce sustainable and hygienic food packaging solutions for Chinese consumers.
"The revised investment schedule will cut the mid-term three-year capital expenditure requirements by half, as capital will be committed for the pulp mill only when the board machine is already generating cash flow," Nordlander added.
The capital expenditure for the first phase of the project is estimated to be about €760m, comprising €590m for industry and €170m for plantation operations.