Paper Mills Under Construction in China in 2016 Paper Industry Overcapacity Intensified

2019-07-19

In the first half of 2016, due to the frequent increase in paper prices, raw material prices are still in a downward channel, energy costs have been reduced, and the elimination of backward production capacity has led to an increase in the concentration of paper industry production capacity. Coupled with the benefits of value-added tax rebates, Chinese paper companies have generally increased their profits.

The rapid improvement of the paper market has stimulated the investment sentiment of the market. Some paper projects have been introduced intensively, and some paper projects under construction have also accelerated the process. The following are some of the new capacity in the paper industry that has occurred in the past two months:

Zhanjiang Chenming 1.2 million Tons White Cardboard Project Planned to Put into Production in August

A few months ago, Chen Hongguo, chairman of Shandong Chenming Group, said in a meeting with Wang Zhongbing, deputy secretary of the Zhanjiang Municipal Party Committee and Mayor of Guangdong that the Zhanjiang Chenming 1.2 million-ton white cardboard project is under construction and is expected to be put into production in August this year. At present, the project production time seems to have been delayed, but I believe it will not be delayed for too long.

Dongsheng Paper No.2 Machine Successfully Put into Production

On August 18, the second machine of Dongsheng Paper, the largest packaging paper manufacturer in Yunnan, was successfully started and put into normal production. The newly put into production No.2 machine has a width of 4800mm and a design speed of 550 m/min. The machine mainly produces 80-100g/m2 low-weight high-strength corrugated base paper. Yunnan Dongsheng Paper is the branch of Xinmi Dongsheng Paper in Yiliang County, Yunnan Province. The construction site is located in the cardboard packaging area of Yiliang County Industrial Park. It covers an area of 200 acres. The project has planned 3 production lines. The design capacity is 300000 tons. On February 17, 2016, the project was discontinued due to environmental failure. The production of No. 2 investment shows that the company has stepped out of the shadow of production suspension and is entering the fast lane of rapid development.

East and West Lulin Paper 700000 Tons of High-grade Packaging Paper Project Put into Production within the Year

The 700000-ton high-grade industrial packaging paper expansion project of Lulin Paper, which has an investment of 1.64 billion yuan and covers an area of 540 acres, has been delayed for a year, but as the paper price is completed, the project will be re-upgraded and accelerated, and it is expected to be within the year. Put into production. At present, the region's Yufeng Paper, Shuangding Paper and other recycled paper manufacturing enterprises are also increasing capacity. It is estimated that by 2020, the paper packaging industry in this area will have an annual production capacity of 1.5 million tons of high-strength corrugated paper, high-grade cardboard paper and high-grade industrial packaging paper, which will surpass Jiangxi Liwen to become the largest recycled paper manufacturing base in the province.

Sichuan annual output of 200000 tons of bamboo pulp and paper project set sail again

On September 6, the signing ceremony of the Supplementary Agreement for the 200000 tons of annual bleaching bamboo pulp and paper integration project in Jiangmen, Xuyong County, Sichuan Province was held. It is understood that Jiangmen 200000 tons of annual bleached bamboo pulp and paper integration project is a key project in Sichuan Province. The project is located in Guangzhao Village, Jiangmen Town, xuyong county and is invested and constructed by Sichuan Yongfeng Pulp and Paper Co., Ltd. The project includes a 200000-ton bamboo pulp plant project and a 450000-mu raw material forest base, with a total investment of 1.11249 billion billion yuan, which will be completed and put into operation by the end of 2018.

Chongqing Yongchuan Gangqiao Industrial Park Jiayi Paper into Operation

A few days ago, the Jiayi Paper Project, one of the six paper post-processing enterprises newly introduced by Chongqing Yongchuan Gangqiao Industrial Park this year, was put into operation. It is understood that this year, in order to promote the accelerated development of the paper industry cluster, Gangqiao Industrial Park has newly introduced six paper post-processing enterprises, including Peter Fu, covering an area of 300 mu, all of which started construction on January 12 this year. At present, the project is advancing rapidly, and the plant construction will be completed in half a year. Among them, Peter Fu and Guangcheng Paper have been put into production, Jiayi Paper will be put into production on August 25, and the rest of Yucheng, Dongshi and Weibang Paper projects will all be completed by the end of this month. Equipment installation will be completed before September. After all the above six paper post-processing projects are put into operation, the annual production capacity is 150000 tons, the output value is 1.5 billion yuan, and the output value can be 0.3 billion yuan this year.

Shangshan Paper 300000 Tons High Strength Tile Paper Project Put into Production in October

Shangshan Paper plans to invest 1.474 billion yuan in Shuyang Economic and Technological Development Zone, Suqian City, Jiangsu Province, to build a high-grade packaging paper project with an annual output of 650000 tons in three phases, of which the first phase will build a high-strength corrugated paper production line with an annual output of 200000 tons, the second phase will build a high-strength corrugated paper production line with an annual output of 300000 tons, and the third phase will build a low-quantity high-strength corrugated paper production line with an annual output of 150000 tons. The first phase of the project, the 200000-ton high-tile paper project, is scheduled to be put into production in October 2016.

Xinjiang Dongshengxiang Paper 200000 Tons Corrugated Paper Project to Start Soon

Xinjiang Dongshengxiang Paper Co., Ltd. has an annual output of 200000 tons of corrugated base paper project and built two 100000 tons/year corrugated base paper production lines. At present, the construction site of the project has been determined, and the secondary publicity of environmental assessment is being carried out.

In the past year, there has been a lot of new production capacity in domestic packaging paper projects. The relatively large projects include Shanying Paper's 800000-ton Noodle Carton Paper Project, Jingxing Paper's 300000-ton High-strength Corrugated Paper Project, Sun Paper's 300000-ton Packaging Paper Project, Yunnan Dongsheng Paper's 300000-ton Packaging Paper Project, Jiangsu Yukai Industrial's 300000-ton Packaging Paper Project, Chenming Paper's 350000-ton High-ton Packaging Paper Project, etc. Looking forward to the next year or two, 1.5 million tons of Rongcheng, 2 million tons of Shanying, 1 million tons of Xiangfa and 1 million tons of Chenming will be completed and put into operation in Hubei alone.

Obviously, although the paper industry is full of emotions, the crisis of overcapacity in China's paper industry has not eased. The bigger problem is that China's exports and domestic demand are both showing weakness. For these situations, are still desperately spreading money. Have Chinese paper companies really considered it?