Greenpeace China yesterday called on the Chinese government to reject paper manufacturer Gold East Paper's application for a domestic stock market listing because of what the environmental lobby group calls the firm’s "shocking" environmental record.
Gold East Paper is an affiliate of Indonesian logging giant Asia Pulp and Paper Group (APP). Environmentalists suspect APP is involved in illegal forest destruction in both Indonesia and China.
Greenpeace called on China's Ministry of Environmental Protection to consider carefully whether Gold East should be allowed a listing on the Shanghai stock market.
Greenpeace China alleges that Gold East Paper and its subsidiaries have committed eight serious environmental offences since 2005; in the past two months, according to the lobby group, Gold East subsidiaries discharged illegal black effluent in Hainan, and exceeded legal pollution limits in Suzhou.
Jiangsu-based Gold East Paper was established in 1997 by an affiliate of APP and a Chinese partner. In 2007 the company recorded sales revenue of RMB 10 billion (US$1.46 billion).
Under Chinese regulations, Gold East’s IPO application must first be approved by the environment ministry, before being considered by the securities regulator.
(China.org.cn by John Sexton August 15, 2008)