Slowdown Prompts China's Pulp and Paper Producers to Consolidate, Invest Overseas

As China's economic boom has slowed in recent years, its pulp and paper sector has responded with significant shifts in strategy. Mergers, overseas expansion, deleveraging, and new product development have become priorities for China's pulp and paper producers. Providing much-needed detail about this vital sector is the China Pulp and Paper Factbook, a new publication from RISI, Boston, Mass., USA. 

 

"The slowdown is bringing big changes for China's pulp and paper companies," said Levi Li, RISI managing director for China. "We're seeing Tier 1 paper companies invest overseas, as Sun Paper expands into the U.S., and HXPP has acquired International Paper's packaging business in Asia.

 

"Industry consolidations in China are also changing the competitive landscape," said Li. In Fuyang, Zhejiang province, which previously hosted more than 200 small paper mills, there are now three dominant groups. And in Dongguan, millions of tons of paper capacity were shut down last year. The impact of such changes is only beginning to be felt, in China and worldwide."

As a top producer and consumer of pulp and paper products, China is of central importance to the entire global industry. Despite this, understanding of Chinese market conditions has historically been limited.

"While producers such as Nine Dragon and APP are known outside of China, many others play an important role in the market, without much attention from the rest of the world." Li explained. "The pulp and paper sector in China is still quite fragmented, with the top 30 companies representing around 52% of the total output—but this is rapidly changing. We compiled the Factbook to help make sense of these changes."

Originally developed for Chinese-language customers by RISI and its China-based UM Paper division, the Factbook has now been updated and translated for a global audience. Drawing from more than a decade of in-country research and analysis, it provides detailed monthly regional price data; statistics on output, demand, import/export, investment, and industry financial performance; a review of economic and industry policies; and a cost structure comparison between China and the rest of world for all major grades. It offers unprecedented detail about China's pulp and paper companies, both individually and market-wide.

 

 

More information is available online.