PanAsia Paper inks contract

PanAsia Paper inks contract

Singapore (Dow Jones): Singapore's PanAsia Paper Co., a major
newsprint producer in Asia, said on Monday it has inked a three-
year contract to supply up to 42,000 metric tons of newsprint a
year to Singapore Press Holdings Ltd.

"This is a significant agreement given that the newsprint
situation worldwide is very volatile," according to a PanAsia
Paper press release quoting Andre M.J. van Hattum, its president
and chief operating officer. "It shows both PanAsia Paper and SPH
are bullish about the future of the newspaper industry."

PanAsia Paper said that it has a "well-established"
relationship with SPH and that the deal is the "largest contract
the two parties have signed."

Noting that long-term supply agreements are "relatively rare"
in the newsprint industry in Asia, the contract "signals the
confidence of SPH in our product quality and delivery
commitment," said van Hattum.

PanAsia Paper said the newsprint involved in the deal will be
source from its mills in South Korea.