Tissue360 - Spring/Summer 2016 - (Page 27)

feature Bamboo Tissue Mill Nears Startup in China Can a new mill using bamboo pulp be competitive and impact the China market? NEO WU, FISHER INTERNATIONAL Figure 1. New tissue capacity in China, 2000-2014. Source: FisherSolvetm © 2016 Fisher International. A new 300,000 metric ton tissue project in the northwest part of Guizhou province by Shanghai Taisheng Group's newly-acquired asset, Guizhou ChiTianHua Paper, will start up soon. This project will utilize bamboo pulp, which Guizhou ChiTianHua Paper currently produces. As bamboo is still an uncommon fiber for use in tissue, the question is whether this project will be competitive and how it will impact the market. Moreover, since Chinese investors have been building and announcing many new projects, is it reasonable to add more tissue capacity in China? Figure 2. China's Tissue Capacity grew faster than GDP. Source: FisherSolvetm © 2016 Fisher International. Figure 1 shows how much new tissue production has been added to the market in China since 2000. Compared with other grades, tissue is widely recognized as a fastgrowing product in China since it is closely related to the growth of wealth. In 2013, following the 2008 recession, the installation of new tissue capacity peaked in China. There are still many companies planning additional capacity for the market. Consequently, it is safe to say that tissue capacity in China has yet to reach its maximum. FisherSolve™ Capacity Trends show that from 2015 to 2018 there will be an additional 1.5 million tons of tissue capacity in China. If domestic GDP growth meets the Chinese central government's target, it will be no lower than 7 percent. If demand grows with GDP, 1.5 million tons of new tissue capacity might not be enough to keep up with demand during the next 3-4 years. However, comparing per-capita tissue production with per-capita GDP tells a different story. Per-capita tissue capacity grew faster than GDP per-capita (Figure 2). It seems that capacity has been catching up with the Tissue360º spring/ summEr 2016 27

Table of Contents for the Digital Edition of Tissue360 - Spring/Summer 2016

Setpoint
Tissue Industry News
Focus on Global Tissue Key Move for Buckman
Bamboo Tissue Mill Nears Startup in China
2016 Edition of TAPPI Tissue360o
Bright New Star in the Global Tissue Industry

Tissue360 - Spring/Summer 2016

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