Double A Enters The Dissolving Pulp Market

BANGKOK, Thailand — July 12, 2013 — Double A enters the dissolving pulp market in response to
significant growth in the market and the global demand in many enterprises. Double A has invested
USD 6.1 million to upgrade its pulp production line in Thailand to supply the world’s textile
industry with high quality and sustainable raw material from KHAN-NA.

The demand for dissolving pulp has substantially increased during the last few years. The
growing demand of dissolving pulp in the market is attributed to the consistent growth of
regenerated cellulose fiber production, largely initiated by an increasing demand in China and
other Asian countries. In 2012, global demand for dissolving pulp, a viable alternative for cotton,
has reached 6 million tons. The favourable trend is expected to continue in the next two years with
an annual growth rate of 9%.  Global demand is projected at 6.9 million tons in 2014 and thus
dissolving pulp will prevail during the next decade.

Dissolving pulp, a bleached wood pulp with a high cellulose content of more than 90%, is a
key material used to manufacture viscose staple fiber (VSF) or rayon.  More than 80% of the
world’s dissolving pulp is converted to viscose rayon fiber, which is used in dresses, jackets,
suits, socks, neckties and other garments.Asia, specifically China, will continue to be the world’s
biggest market for dissolving pulp as a viable substitute for cotton with special applications in
rayon fiber for textile industry. This is due to the limited domestic supply of fiber, increased
production of garments and the short supply of cotton.

China is the world’s largest production base of viscose fiber.  In 2012, 60% of world’s
total viscose fiber output was produced by China. Production is expected to grow by 10% therefore
demand for dissolving pulp will also rise, making China a key market to Double A.

Double A has invested USD 6.1 million to upgrade its pulp production line in Thailand using
modern technology from Finland. The machine will commence commercial production at the beginning of
2014 with 175,000 tons annual capacity. The first 100,000 tons output will be exported to China.

Double A’s dissolving pulp is sourced from sustainable Paper Tree from KHAN-NA, its
proprietary sustainable fiber sourcing program.  Paper from KHAN-NA reduces carbon dioxide
emissions and improves rice farmer’s income.

Posted July 16, 2013

Source: Double A