China Shengda Packaging Group Inc. Launches New Production Line

HANGZHOU, China, July 25, 2011 /PRNewswire-Asia-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("China Shengda Packaging" or the "Company"), a leading Chinese paper packaging manufacturer, today announced that the Company's wholly-owned subsidiary Zhejiang Great Shengda Packaging Co., Ltd. ("Great Shengda") has launched a new fully-automated production line for five-color flexo printing, slotting and die-cutting.

The new line will increase annual production capacity by 30 million square meters for flexo printing, slotting and die-cutting. The new production line features modern equipment that meets international quality and safety standards and is expected to improve efficiency and reduce waste. The new line commenced production in July and is expected to reach its targeted utilization rate of 75% within two months. The new production line currently shares the existing customer base and will assist to fill up the healthy order pipeline in the first few months of operation.

"Our new line upgrades the technology at Great Shengda and allows us to provide higher quality products, improve efficiency and fill our orders more quickly," said Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging.

About China Shengda Packaging Group Inc.

China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards, which are used for the production of its flexo-printed and color-printed cartons. The company provides paper packaging solutions to a wide variety of industries, including food, beverage, cigarette, household appliance, consumer electronics, pharmaceuticals, chemicals, machinery and other consumer and industrial sectors in China. For more information, visit http://www.cnpti.com.

Safe Harbor Statements

This press release may contain forward-looking statements. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion and continued investment in R&D, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in profit margins of principal product and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.