The paper factory at the centre of violent protests in Jiangsu at the weekend resumed production on Tuesday, according to the Associated Press:
Authorities in the eastern Chinese city of Qidong dropped plans for a waste water pipeline linked to the factory, which is located in the nearby city of Nantong, after thousands of protesters angry about pollution took to the streets last week.
[…] The water discharge project was part of a planned expansion for the Jiangsu Oji Paper Nantong Mill, which began output in early 2011 with an annual capacity of 400,000 tons, according to the company’s website.
It is unclear if the expansion will go ahead now that the sewage pipeline planned for Qidong has been cancelled.
The Wall Street Journal’s MarketWatch reported that the the company’s long-term plans in China may indeed be affected:
“The impact (of the suspension) on its business is almost none” because the suspension will be limited to a short period, an official said.
An industry official, however, said the latest incident “shed light on a business risk in China.” Oji Paper could review its strategy in China, industry sources said.
Oji has been expanding its presence in China and other emerging economies where it is seeing demand for its paper products rise, since having seen paper demand falter in Japan.
Although the plant is a joint venture between Oji and the city of Nantong, nationality has become a prominent theme in the backlash against it. From China Real Time Report:
In China, nationalist comments were mixed with lingering calls for further protest on Sina Corp.’s Weibo microblogging service, showing yet again the anti-Japanese sentiment still to be found in China. “How can a Japanese paper factory come and damage Chinese people’s health and our environment? How can we with our 1.3-billion...
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