China’s Hubei Zhencheng Eyeing Vast Tissue Projects after Taison Group Takeover

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China’s Hubei Zhencheng Paper, now part of the Taison Group, is planning massive tissue capacity expansions at its existing mill in Qingji industrial park, Jingzhou city, Hubei province. 

According to an environmental impact assessment (EIA) report it submitted to local environmental authorities last week, the company aims to boost its total tissue capacity at the site to 500,000 mtpy in two phases over a period of 36 months.

All the tissue will be furnished with market bamboo or wood pulp.

For the first phase of the project, the company is mulling over ordering 10 new TMs, each with a capacity of approximately 20,000 mtpy, from a domestic machinery supplier.

The Taison Group acquired Hubei Zhencheng in February. The Shanghai-headquartered pulp and paper giant set up a wholly owned subsidiary, Taison (Hubei) Household Products, to run the asset.

In the future, the expanded tissue mill will source heat and power from a new cogeneration plant in the industrial park.

The plant is being built by Shanying Huazhong Paper, a wholly owned subsidiary of Shanying International Holdings, the third largest recycled containerboard manufacturer in China after Nine Dragons Paper (Holdings) and Lee & Man Paper Manufacturing.

The Taison Group is the largest shareholder of Shanying International, holding a 29.27 percent stake in the Shanghai-listed board producer.

In the same Qingji industrial park, Shanying Huazhong is constructing three new recycled containerboard machines with a combined capacity of 1.45 million mtpy at a greenfield mill, next to Hubei Zhencheng.

The Taison Group itself has been carrying out ambitious tissue expansion plans in different parts of China. Last year it commissioned four 60,000-mtpy TMs at its Jiujiang mill in Jiangxi province.

It is also building two new 60,000-mtpy TMs at a new facility in Suzhou city, Anhui province, with startups scheduled for the end of this year.

According to Fastmarkets RISI, the group is considering further expansions at its existing production site in Chongqing municipality.

The Chongqing mill, operated through subsidiary Chongqing Well Mind Paper, boasts 54,000 mtpy of tissue capacity at present.

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