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.