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Pacrim International Capital Inc. reports Dynapac now a strategic partner in Wah Sang Paper Products in China

^{Published on 2009-09-03 05:14:06 - Market Wire}
 

 HONG KONG, Sept. 3 /CNW/ - PACRIM INTERNATIONAL CAPITAL INC. (PCN: TSX) ("Pacrim") previously announced it had acquired 46% of the outstanding common shares of Pacrim International Capital Holdings Inc. ("PICH"), a holding company with business interests in the People's Republic of China consisting of an indirect controlling interest in Wah Sang Paper Products (Shenzhen) Co. Ltd. ("Wah Sang"), a corrugated packaging company. Pacrim now reports that pursuant to conversion of an existing loan of Hong Kong $40,000,000, the Japanese company Dynapac Co., Ltd. ("Dynapac") has acquired 23,000,000 shares or 14% of Wah Sang. PICH continues to be the controlling shareholder of Wah Sang, holding indirectly 75.07% of the shares of Wah Sang after the loan conversion by Dynapac and a small acquisition of shares. Dynapac is a major customer of Wah Sang, having been a customer for over ten years. Dynapac, which is now a strategic partner for the future expansion of Wah Sang, is also in the corrugated packaging business, manufacturing and selling packaging materials. Dynapac is a public company listed on the Tokyo Stock Exchange with operations across Asia Pacific including Japan, Hong Kong, Thailand, Philippines and Mainland China. As a strategic partner and customer, it is anticipated Dynapac will assist Wah Sang with technical know-how and introductions to its business contacts in Japan, including Japanese banks active in China. The corrugated packaging operations of Wah Sang are located in Shenzhen, in the Pearl River Delta of southern China which houses one of the world's largest concentrations of manufacturing of consumer electronics, office and telecommunication equipment. Wah Sang sells its high-end packaging products almost exclusively to multinational corporations which export from China. Wah Sang has annual production capacity of 63,000 tonnes of containerboard, 50,000 tonnes of flexo containers and 18,000 tonnes of off-set colour containers. The bulk of the containerboard produced is used internally for further processing into flexo containers or off-set colour containers. A detailed description of Wah Sang is contained in Schedule "A" to Pacrim's Business Acquisition Report of January 28, 2009. Caution concerning forward-looking statements Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking and subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend" or "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: risks associated with China including state ownership, government sector intervention, foreign investment, repatriation of profit and currency conversion, tax, the developing legal system, protection of intellectual property rights, shareholder rights and enforcement of judgments, permits and business licenses, appropriation, political stability considerations, the central planned economy, fluctuations in foreign exchange rates and Chinese accounting and auditing standards; risks in business and operations including risks associated with expansion, future capital requirements, dependence on key personnel, environmental regulation, competition, risk in purchasing abroad, risk of change in the price of raw materials, product price volatility, insurance and operating plant risk; customer risk including risk of a single market and risk depending on major customers; technical risk including risk in the advance of technology and risk of relying on technology abroad; financial risk including foreign exchange risk, credit risk, liquidity risk, cash flow and fair value interest rate risk; investment strategy risk; and short term management transition risk. We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of Pacrim's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis, the "Risk Factors" section of Schedule "A" to our Business Acquisition Report of January 28, 2009 and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time-to-time by us or on our behalf; such statements speak only as of the date made. %SEDAR: 00003175E 

For further information: Guy Lam, Chief Executive Officer, Pacrim International Capital Inc., Tel. 852.2526.1554