The two companies plan to set up a venture in August, Yoshio Noda, a spokesman for Tokyo-based Mitsubishi Paper said by phone today. The project is estimated to cost as much as 38 billion yen ($370 million).
The plant will be built at a Mitsubishi Paper factory site in Aomori prefecture and will use black liquor generated in the making of pulp as a fuel, according to Noda.
The plant is scheduled to start running in 2017, he said.
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