Guangxi Zhihu Yuanchuang Plans 1 million Metric tpy of Tissue Capacity in China

According to Fastmarkets RISI, Guangxi Zhihu Yuanchuang Paper plans to build 1 million tonnes per year of tissue and 860,000 tpy of virgin pulp capacity at a greenfield mill in Guigang city, Guangxi autonomous region. The environment impact assessment (EIA) report for the project was published on August 30 for approval.

The company, which was established in 2023, plans to develop the project in three phases: The first two phases will each have 300,000 metric tpy of tissue and 330,000 metric tpy of bleached kraft pulp capacity, and the third phase will have 400,000 metric tpy of tissue and 200,000 metric tpy of mechanical pulp capacity, according to the EIA document. A timeline for the project has not been revealed.

The firm is a sister company of Guangxi Zhihu Yunshang, which currently runs a 210,000 metric tpy tissue mill in the city of Laibin in Guangxi. Zhihu development: The two companies are currently owned by Fujian Yuanchuang Enterprise Management, an affiliate of Fujian Zhihu Internet Technology. Fujian Zhihu used to focus on converting and online retailing tissue and hygiene products, and it has quickly built the presence of the Zhihu brand in the Chinese tissue segment amid the e-commerce boom.

In 2019, the retailer decided to diversify into tissue production. Zhihu Yunshang was then established and has commissioned a total of eight tissue machines since 2020 at the Laibin mill.

In the meantime, Fujian Zhihu continued to expand by acquiring or leasing tissue capacity.

The company bought Hebei Mancheng Chenggong Paper, a 72,000 metric tpy tissue producer based in Baoding city, Hebei province in 2020.

In 2021, it acquired Fujian Juhui Paper, which runs a 38,000 metric tpy tissue mill in Fuqing city, Fujian province. In the following year, the company leased Baoding Tiantian Paper’s tissue mill, through which it controls another 74,000 metric tpy of tissue capacity in the city of Baoding.

With tissue capacity growing, Zhihu’s owners further invested into forestry and pulp production in 2022.

The pulp production entity, currently a joint venture between Fujian Zhihu and Zhihu Yunshang, leased a 50,000 metric tpy kraft wood pulp line from Laibin Donta Paper, which currently runs another 100,000 metric tpy kraft pulp line.

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