Nine Dragons paper lags behind capacity planned to clean up

China's Ministry of Industry and Information Technology has announced a list of 18 industries that have eliminated backward capacity, including paper making, which must be closed before the end of September this year.　　Nine Dragons paper (02689.HK) is listed in two subsidiaries in Sichuan and Inner Mongolia. Nine Dragons responded that the old capacity of the plant in Leshan and Inner Mongolia, which has invested new capacity in the Leshan centre and is building environmental facilities, has been planned for clean-up.　　The Inner Mongolia Factory is mainly used for pulp production, which refers to the low proportion of the backward paper production capacity and the related equipment has been deactivated.　　Nine Dragons paper reiterated that the group could gain greater market share from obsolete capacity elimination. The unit fell 1.87% to HK $11.52 yesterday.