China's paper business opportunities

An information source from the authoritative department shows that Americans consume more than 320 kilograms of paper and Europe more than 260 kilograms. According to the statistics of 2000, China’s annual paper consumption is less than 27 kilograms per person. China has a large population. Each additional kilogram of paper consumption will create a market of nearly 10 billion yuan.

It is reported that in the past ten years, China's paper consumption has increased at a rate of 10% per year. The annual per capita consumption of economically developed regions such as East China and South China has reached 100 kilograms, which is far higher than the national average. With the economic development, the demand for paper will increase. Experts predict that in 2015 China will become the world’s largest paper consumer. By 2030, paper consumption will reach 200 million tons and the market prospect is very broad.

In the face of this vast market, the capital of Finland, Canada, and South Korea has been or is entering China through a wholly-owned or joint venture. However, the problem of raw materials has deterred paper manufacturers.

It is understood that China's paper industry has long invested in scattered funds, resulting in a generally smaller corporate scale structure. China's existing more than 5,000 papermaking companies can be rated as less than half of the scale, can be called a large-scale Haotian. The national paper industry also has the problem of obsolete equipment. Most of the equipment of Chinese paper-making companies are domestically-made and old-fashioned equipment in the 1930s and 40s. Even if some of them are used equipment that is eliminated by other countries, the technical content is low and the grades of paper produced are not enough. In addition, the irrational production structure has always restricted the development of state-owned papermaking companies. Our country is a forest-destitute country. Most types of paper use wood fibers. In developed countries, more than 90% of papermaking uses wood fibers. However, in China, less than half of wood fiber is used. The large amount of non-wood fiber used makes the quality of paper uncompetitive. According to industry sources, China's forest coverage is low. The raw materials required for papermaking are severely insufficient, and less than 10% of the required amount of domestic wood pulp is produced each year. If a large number of raw materials are imported, the cost will inevitably fall. This undoubtedly provides a broad market for planting economic forests and developing other sources of raw materials.

There is pressure to have business opportunities. Zhenjiang Jindong Paper, which has foreign shares, has built 230,000 hectares of fast-growing forest in Hainan. Jindong Paper’s production capacity of coated paper is already the first in Asia. When the new machine goes into production smoothly, the production capacity will reach 10 million tons, which is the world’s number one. They said that our raw materials are self-sufficient. The cost can be lower than foreign coated paper, and at the same time, our quality will not lose to them. When China joins the WTO, we will not be affected. It seems that Kim Dong Paper’s confidence is obviously not groundless.

In comparison, domestic enterprises can realize that the number of companies that are realizing the development of forestry paper is very small. This undoubtedly provides a very broad investment prospect for the development of economic forests. According to industry sources, the countries participating in the domestic paper industry claim that the international competition for domestic papermaking participation is less, and the stimulation of foreign investment will make them stronger and better able to cope with the impact of China's accession to the WTO on the paper industry.