Year-end inventory: Top ten key words for China's paper industry in 2011

In 2011, as the beginning of the Twelfth Five-Year Plan period, the Chinese economy is faced with many tasks such as maintaining growth, resisting currency, adjusting the structure, and promoting transformation. At the same time, the world economy is still on the long track of recovery, with quantitative easing policies and the European debt crisis. The ups and downs bring about many uncertainties. The famous economist Lang Xianping used two words to summarize China's economic situation in 2011: the crisis. Feelings of helplessness throughout the year 2011. As the paper industry, this year also experienced a lot of resistance: the increase in raw material costs, credit crisis, profit decline, more than 8 million tons of elimination tasks, the weight of energy-saving emission reduction, the impact of inflation, the difficulties of overcapacity, coal With the pressure of rising electricity prices and threats from the international trade market, even in the face of so many difficulties, China’s paper industry still stands out in 2011 and is heading in the opposite direction to produce a satisfactory answer.

The year of the Twelfth Five-Year Plan 2011 as the year of the Twelfth Five-Year Plan is an important year for the Chinese economy and the Chinese paper industry. In 2009 and 2010, China’s paper and paperboard consumption volume ranked first in the world. In the first 10 months of 2011, China’s paper and board production was 9271.7377 million tons, an increase of 12.9% year-on-year. During the “Twelfth Five-Year Plan” period, China's paper industry entered a period of comprehensive industrial restructuring. It is necessary to focus on solving three prominent problems of resources, environment, and structure in order to promote industrial upgrading. The "12th Five-Year Plan for the Development of the Paper Industry" has also been reviewed by experts and is about to be introduced. During the 12th Five-Year Plan period, China's paper industry will vigorously promote energy-saving and emission reduction, and strive to achieve clean production of green paper in the industry.

II. Energy Saving and Emission Reduction As a traditional industrial sector, the achievements of the domestic paper industry in environmental protection in the past 10 years cannot be questioned. However, it must be admitted that the papermaking industry is still the number one member of the “COD Emissions Club” and bears great pressure for reducing emissions. On July 11, the Ministry of Industry and Information Technology issued an announcement on the elimination of the list of backward production capacity companies, backward production lines (equipment), and production capacity in the 18 industrial sectors in the country in 2011. Among them, the outdated production capacity of pulp and paper production was 8.196 million tons, involving 599 enterprises. During the 12th Five-Year Plan period, the pulp and paper industry is a key industry for national emission reduction. Twelfth Five-year Paper Environmental Protection Expected Indicators - Comprehensive energy consumption decreased by 16.7%, with an average annual reduction of 3.6%, from 1.2 tons of standard coal consumed in 2010 to one ton in 2015; COD emissions decreased by 10.4%, annual average reduction 2.2%, from 1.06 million tons in 2010 to 950,000 tons in 2015.

III. Dissolving Pulp The profitability bottleneck of the papermaking industry has caused the listed companies in the industry to urgently seek other ways to improve their profitability. The dissolving pulp currently in the profiteering industry has attracted companies such as Chenming Paper and Sun Paper to invest in five paper industry listed companies. In 2010, the test of water from Fujian Nanyang Paper led the industry to switch production, Chenming Paper had a dissolving pulp capacity of 80,000 tons, and Qingshan Paper's 98,000 tons of dissolving pulp project was also put into operation recently. Hunan Juntai Pulp and Paper was also 300,000 tons. Recently converted dissolving pulp. In addition, Sun Paper has invested RMB 1.5 billion in its Guangxi Branch and Fujian Nan Paper's RMB 600 million in dissolving pulp projects are under construction. Although the companies currently dissolving pulp projects are still profitable, but in the long run each competing to chase high-profit, attracting generous investments, will not make the dissolving wood pulp profit more difficult or even surplus?

4. Green Commitment On September 21, 2009, the first China Green Industry Development Forum for Paper Industry was held in Beijing. The 32 papermaking enterprises in the country solemnly promised that they will start production in accordance with the "Pollution and Paper Industry Pollutant Discharge Standards" six months ahead of schedule. Two years later, on December 3, 2011, Beijing, at the “Second China Paper Industry Green Development Forum”, the China Paper Association has organized nearly 100 pulp and paper companies to issue “self-consciously fulfilling social responsibilities and promoting papermaking. The Industrial Green Development Proposal shows the determination of green development. From the 32 companies that participated in the "Green Development Commitment" for the first time to the nearly 100 paper companies today, the Chinese paper industry recognizes the importance of adjusting the structural transformation. Paper companies will strictly implement the requirements set forth in the “12th Five-Year Comprehensive Energy Conservation and Emission Reduction Work Plan” and during the 12th Five-Year Plan period, they will achieve a green commitment of “average overall energy consumption per unit product is 18% lower than at the end of November 15th”.

V. Pollution incidents With increasingly stringent environmental protection policies, paper-making companies still suffer from pollution. These include not only those small paper mills that are about to be phased out, but also some large local tax and profit holders, and even listed companies of well-known paper companies in China. For example, the vertical discharge of sewage from Murray Paper was locally protested. Zhuhai Renheng Hongta Paper polluted the mother river in Zhuhai, the Henan Silver Pigeon Group's black mud stole farmer fields, and even Huatai Group was exposed to waste paper waste from waste paper factories and poisoned local villagers in Dongying, Nanning. The long-term discharge of pungent odor gas from Phoenix Paper Factory has caused frequent exposure and repeated prohibitions. When can we really and the whole industry step into the ranks of green paper and cleaner production? This depends not only on the supervision of the national policy, but also on the implementation of energy conservation and emission reduction measures by the company on environmental protection policies, and on the corporate social responsibility.

6. The merger and reorganization of the paper industry is an industry with relatively concentrated capital and scale. Therefore, if paper companies want to develop rapidly, they must take the path of scale and internationalization, and the stronger ones are stronger, otherwise they will be eliminated. Since the beginning of this year, a number of listed companies in the paper industry have announced major changes: Jincheng Paper's suspension of listing due to three consecutive years of losses; Yibin Paper has ceased to restructure and retired; Fujian Nan Paper Controlling Shareholders are prepared to invest with their shareholdings to introduce a strategic investor joint venture. The new project; the second reorganization of the Meili Paper Industry failed; the Silver Dove invested three years and three years of financing; the controlling shareholder changed for two years; China Chengtong successively controlled Guanhao Hi-tech and Yueyang Forest Paper; and the China Metallurgical Paper Industry was not far behind. Although several failures have failed, there is still an overall market focus... Grouping, large-scale, and industrial concentration are the major trends in the development of the paper industry, along with the restructuring of the paper industry and the pursuit of emerging regional markets in the supply chain. Under the guidance of further integration and the development trend of the new economy across industries, the wave of mergers and acquisitions in the papermaking industry will inevitably continue to linger for at least the next ten years.

VII. Living Paper In 2010, the per capita consumption of Chinese household paper was only 3.48 kg, which has not reached the world average of 4.1 kg/year. In addition, due to the large population, economic development and other factors determine the huge potential of the Chinese market. The huge market attracts a large amount of investment from many companies. In 2011, except for the production capacity expansion of tissue paper companies such as Hongyeye Paper, Hengan, Vinda, Zhongshen Jierou, Dongguan Huajie, and Dongshun Group. , papermaking companies or foreign industry enterprises producing other types of paper Chenming, Yinge Group, Asia Pacific Resources, Jingxing Paper, Gefen, Fujian Nanzhi, Yunjinglin Paper and Fuming Group’s amber paper, etc. Scale construction of household paper projects. Statistics show that in recent years, the industry's new production capacity has been increasing year by year. In 2010, the new production capacity was about 438,500 tons, about 927,000 tons in 2011, and about 1 million tons in 2012. According to the known new construction and expansion projects and the current import and export of household paper, it is estimated that the domestic production of domestic paper will be about 7 million tons in 2011, an increase of about 12%; the import volume will be about 90,000 tons, and the export volume will be about 650,000. Ton, consumption is expected to be about 6.45 million tons.

8. The transformation data shows that China has been ranked first in the world for paper and board production and consumption for two consecutive years. Although China's paper industry is far from the world level, especially the developed countries, in terms of per capita consumption, the paper industry in China still has a lot of room for development. However, we also have to face the danger of excess capacity in certain paper products. For example, the coated paper market, Chenming Paper's 800,000 tons and Huatai Group's 700,000 tons of coated paper come into operation; at the same time, the international market has successively made “fortune” for China’s coated paper, making the coated paper market in China withstand the dual pressures of export obstruction and overcapacity at the same time. . In addition, the newsprint market has suffered from the impact of electronic media. In the past two years, the production capacity of containerboard has been greatly expanded. At present, there is no excess crisis. However, in the long run, there will be this worry. The transformation of papermaking companies is imperative. The papermaking company's Pulp and Paper Production Line converted to dissolving wood pulp, Chenming Jingxing Silver Pigeon and other projects for the construction of household paper, and the papermaking business of Murray Paper did not make money to transform coal mining. At the same time, faced with the status quo of China's paper industry, papermaking equipment manufacturers Voith, Metso, etc. are gradually transforming their business, from the gradual transformation of suppliers to equipment services, adjust the strategic direction, and snatch new markets.

IX. Capacity Expansion In recent years, China has become one of the countries with the fastest growing capacity in the world paper industry. Due to the large room for growth in consumption, the paper and paperboard capacity in China will continue to expand further in the next few years. At the same time, as the country vigorously promotes energy-saving and emission reduction, a number of outdated production capacity will be replaced. The new project will significantly reflect the characteristics of large-scale production. The major paper-making companies have never stopped the expansion: Huatai 700,000 tons copper plate Paper 400,000 tons newsprint, Chenming Zhanjiang 650,000 tons cultural paper 1 million tons wood pulp, Sun Paper million tons 1 billion yuan Guangxi project, Asia-Pacific resources 30 billion yuan extension sunshine project, Asia-Pacific Jiangmen project and Chongqing project have started, The Dragon Paper Liaoning Quanzhou Liaoning Project, Jinhai Pulp's 900,000-ton cultural paper production, and Thailand's billion-younger brother Jiangsu Dafeng Million-ton project started. Throughout these projects that have already been put into production or under construction, packaging paper and cultural paper are still the top priorities.

X. Increased costs The severe economic situation in 2011 also brought certain influence to the papermaking industry. The March earthquake in Japan once again triggered a rise in pulp prices. In July, international pulp prices rose to the highest, North American NBSK quotation reached US$1,020/ton, and domestic market NBSK quotation was US$920/ton, creating a record high for Tongxin. Although the impact of the economic downturn in Europe and the United States and the increase in domestic pulp production and declining demand have affected the appreciation of the renminbi, pulp prices have continued to fall in the second half of the year. However, the inventory of high-priced pulp has also brought a certain degree of cost pressure; domestic financial credit The tightening and rising labor costs have affected the profitability of paper companies in various degrees; besides, the rising cost of coal and other energy resources and the increase in environmental protection costs under the high pressure of energy conservation and emission reduction have caused a sudden increase in the production costs of papermaking companies. . Even with so many difficulties, China's paper industry still stands out in the downturn of the global paper industry. According to statistics, in the first 11 months of 2011, China produced 2020.89 million tons of pulp, an increase of 9.92% year-on-year. 2011 has been far away from us, leaving behind not only those brilliant data and impressive performance, but also more pressure on the Chinese paper industry to reflect on how to transform, how to complete the green promise and how to remain in the economic inflation Under the existing conditions, it maintains a good momentum of growth, how to deal with the crisis of overcapacity, how to survive in the capital market and how to open up new markets... China's paper industry in 2011 is still advancing in the crisis. !