China is planning to open a new paper-making plant that will be operated by a Chinese company to reduce its reliance on imported paper.
The move comes after the government in Beijing ordered the closure of a plant in Zhejiang province to focus on industrial development and research.
The government plans to use the new paper manufacturing facility to make paper for its own use, rather than importing paper.
The Zhejiyuan Paper Manufacturing Co., or ZPPLC, said on Tuesday it would invest 2.7 billion yuan ($2.2 billion) in the plant.
The ZPPFC said it plans to open the new plant in 2019.
China has long struggled with high prices for its manufactured goods, particularly in terms of paper.
Last year, the country was the first to declare a paper shortage, after falling into recession in late 2015.