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P&G buys China paper firm
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May 21, 1999: 10:08 a.m. ET
Consumer products firm bolsters Asia presence with towel and tissue lines
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NEW YORK (CNNfn) - Procter & Gamble Co. said Friday it will buy two paper mills and two paper towel and tissue lines from China-based Long Chen Paper Co. Ltd. for about $113 million, a move it hopes will boost its presence in the Far East.
The world's biggest consumer products company said it has signed a letter of intent to purchase Long Chen's Ching-sui paper mill in Taiwan and its Souzhou paper mill in the People's Republic of China. It also agreed to buy the rights to Long Chen's Tender and Delight tissue and paper towel brands, which are popular in the region. The agreement is subject to approval by Long Chen shareholders.
The agreement is part of Procter & Gamble (PG) moves to bolster its presence in the Far East, particularly with its consumer paper products lines. Procter & Gamble entered the Asian market in 1997 after it acquired Ssangyong Paper Co. Ltd. in Korea.
"This acquisition presents a great opportunity to expand our tissue-towel business into two important Asian economies," said Gary Martin, president of Procter & Gamble Global Tissue and Towel.
Procter & Gamble shares fell 9/16 to 96-1/8 in early morning New York trading. 
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Procter & Gamble
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