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Property, Plant and Equipment
3 Months Ended
Mar. 31, 2013
Property, Plant and Equipment [Abstract]  
Property, plant and equipment
(7) Property, plant and equipment
 
As of March 31, 2013 and December 31, 2012, property, plant and equipment consisted of the following:
 
   
March 31,
2013
   
December 31,
2012
 
Property, Plant, and Equipment:
           
Land use rights
 
$
9,961,400
   
$
9,895,081
 
Building and improvements
   
31,837,778
     
31,625,816
 
Machinery and equipment
   
112,609,578
     
111,857,002
 
Vehicles
   
441,949
     
439,007
 
Construction in progress
   
2,645,773
     
1,315,664
 
     
157,496,478
     
155,132,570
 
Less accumulated depreciation and amortization
   
(34,896,581
)
   
(32,741,114
)
Property, Plant and Equipment, net
 
$
122,599,897
   
$
122,391,456
 
 
Land use rights represent two parcels of state-owned land located in Xushui County of Hebei Province in China, with lease terms of 50 years expiring in 2053 and 2061, respectively.
 
Construction in progress mainly represents payments for the new 15,000 tonnes per year tissue paper manufacturing equipment PM8.
 
As of March 31, 2013 and December 31, 2012, property, plant and equipment with net values of $9,025,899 and $9,316,645 have been pledged for the long-term loan from credit union of Orient Paper HB, respectively. In addition, land use right with net values of $7,431,490 and $7,419,614 were pledged for an independent third party which cross-guarantees the Company’s credit facility from the Bank of Hebei as of March 31, 2013 and December 31, 2012, respectively. The amount of that long-term loan of the third party was $1,515,974 and will expire on February 26, 2014. Depreciation and amortization of property, plant and equipment was $1,932,853 and $1,959,302 during the quarter ended March 31, 2013 and 2012, respectively.