Royal Golden Eagle, controlled by Indonesian billionaire Sukanto Tanoto, is increasing its investments in China with plans to build an 11 billion yuan facility to manufacture lyocell fiber in the province of Shandong. The agreement was signed with the Shandong provincial government and the facility is expected to produce 600,000 tonnes of lyocell fiber annually once it begins commercial production. This follows RGE’s acquisition of Chinese tissue paper giant Vinda International Holdings in March.
RGE has been expanding its presence in China, with its unit Asia Symbol operating manufacturing facilities in Shandong and Guangdong provinces. These plants produce a variety of paper products including pulp, fine paper, paperboard, and tissue paper. In addition to its investments in China, RGE has also been expanding in Brazil, acquiring OL Papeis and announcing a $500 million investment to build tissue paper and pulp facilities in the country.
Sukanto Tanoto, with a net worth of $3.1 billion, owns RGE, a conglomerate with over $35 billion in assets across pulp and paper, palm oil, and energy industries. The company employs 70,000 people globally. Tanoto has also expanded his real estate portfolio through Pacific Eagle Real Estate, with properties in China, Singapore, and Europe. He is currently in talks with Singaporean billionaire Kwek Leng Beng to explore real estate opportunities in the U.K.
The investment in the lyocell fiber facility in Shandong is part of RGE’s continued strategy to grow its operations in key markets like China and Brazil. The company’s expansion plans are part of its efforts to diversify its business interests and strengthen its position in the global market. By investing in new manufacturing facilities and acquiring existing companies, RGE aims to capitalize on the growing demand for raw materials like lyocell fiber and increase its market share in the paper and textile industries.
With the completion of the Vinda International Holdings acquisition and the construction of the new lyocell fiber facility in Shandong, RGE is well-positioned to further solidify its presence in the Chinese market. The company’s commitment to investing in new technologies and expanding its production capacity highlights its long-term growth strategy and commitment to innovation. The collaboration with the Shandong provincial government also demonstrates RGE’s dedication to working closely with local partners to drive economic development and create job opportunities in the region.
Overall, RGE’s investments in China and Brazil, as well as its real estate ventures, showcase the company’s ambition to continue expanding its global footprint and diversify its business interests. With Sukanto Tanoto at the helm, RGE is well-equipped to navigate the challenges of the global market and capitalize on emerging opportunities in key industries. As the company continues to grow and evolve, its commitment to sustainability and innovation will be key drivers of its success in the years to come.
