Tissue360 - Spring/Summer 2016 - (Page 27)
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
Table of Contents for the Digital Edition of Tissue360 - Spring/Summer 2016
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