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Chinese papermaking companies are optimistic about investment in North America

Writer:China Date:2017-4-26 14:45

  Although papermaking was invented in China earlier, it was industrialized by Western countries and commercialized paper products. At present, China has shown its hope that its paper industry will become a world center, and make unremitting efforts.

  Over the past 30 years, China's papermaking capacity has experienced less than 3 million tons from the early 1990s and more than 100 million tons by the end of 2015, making China the world's largest producer of papermaking. By 2016, the distribution of paper production in countries, no doubt, China is holding more than 25% of the global share, to lay its leadership.

  However, as China's economic growth slows, capital investment in new capacity is shrinking. Industry leaders such as Nine Dragons Paper, Liwen Paper, APP China, etc. are accelerating investment in improving efficiency, and gradually reduce the delivery of new capacity. Service providers such as Videe, Voith and Siemens, and at the same time to intensify the concept of innovative service market, such as industrial 4.0, industrial Internet, digital solutions and so on. Industry giants are exploring the best for China's paper-making enterprises operating the best program.

  With the Chinese central government's promotion of the "One belt one Road" national strategy, sovereignty and local funds and trillion dollar-level Chinese foreign exchange reserves are stepping up investment in overseas markets. As the Chinese government encourages Chinese enterprises to accelerate overseas expansion, choose the best investment direction and the subject of investment has become the most important issue in the early stages of investment. So, for the overseas expansion of papermaking enterprises, how to consider and choose the ideal subject?

  The distribution of the world's packaging paper, cultural paper, tissue paper and specialty paper and the number of factories (due to the need for adequate supply of raw fiber for paper pulp production, pulp enterprises need to be closer to the supply of raw materials in order to maintain their competitive advantage. Temporarily consider the commodity pulp). For North America, where more than 400 operating plants are less than 400 million tons of paper and paperboard production, it is not difficult to determine that the industrial scale in North America is more optimized than in the Asia-Pacific region and Europe.

  On the basis of industry maturity in North America, from a macroeconomic point of view, the dollar is strong against the global exchange rate and is expected to remain strong over the next few years. At the same time, considering the flock to the Middle East refugee crisis in Europe and the challenges of terrorist attacks, are driving the risk of investors to seek a more robust investment direction. North America, based on its geographical location and a stable political environment, taking into account its mature social and legal system, has attracted a large number of Chinese investors favor, many of them Chinese paper industry investors. In the past three years, we have seen a lot of reports on the flow of Chinese paper investment capital to the United States, such as the Spring Forest Paper Virginia Project and the Sun Paper Arkansas Project.

  Based on these obvious factors, Chinese capital has a good reason to flock to North America. The macro analysis of the North American paper market can reflect the logic behind these investments. North American paper production capacity distribution, Canada and the United States commodity pulp and paper and paperboard production a total of nearly 110 million tons. North American plant equipment assets are relatively old compared to other regions. However, from the overall operating point of view, North America's production costs lower than in Asia and Europe, mainly from low fiber costs.

TypeInfo: Industry news

Keywords for the information:paper products  tissue paper  paper pulp