Chempolis Ltd and Henan Yinge Industrial Investment Co., Ltd signed a frame agreement on 21 January 2011 on establishing a joint venture in Luohe, Henan province. The proposed JV company will build a biorefinery based on Chempolis formicofib™ technology using wheat straw as raw material. Biorefinery will produce annually 160 000 tons of non-wood papermaking fibres and biochemicals. Registered capital of the joint venture is planned to be 30 million Euros, of which Yinge invests 22.5 million Euros and Chempolis invests 7.5 million Euros.

”For Chempolis co-operation with a top non-wood papermaking company in China is a desired foundation for the biorefining joint venture” states Pasi Rousu, President of Chempolis Asia Pacific.

Henan Yinge Industrial Investment Co., Ltd is a leading edge company producing top quality non-wood papers in China. It belongs to a conglomerate Yinge Group which is a publicly listed company. Henan Yinge Industrial Investment Co., Ltd produces fine papers, packaging papers and tissue with an annual papermaking capacity of 500 000 tons.

Chempolis Ltd. is a technology leader delivering innovative 3G formico^® biorefining technologies that provide profitable, sustainable and cost-effective solutions for the biomass, paper, biofuel, and chemical industries to refine biomass into high-quality products while minimizing environmental impact and maximizing social benefits. Chempolis’ formicofib™ converts non-wood raw materials into papermaking fibre for paper and board, packaging, and hygiene products; while formicobio™ processes non-food raw materials into cellulosic ethanol.