China is renewing its pulp and paper manufacturing and will increase production by 30% over the next five years. Finpro is cooperating with the Federation of Finnish Technology Industries on a project to bring Finnish pulp and paper expertise together and take it to the Chinese market.
“The Chinese Paper Association has proposed that we bring Finnish pulp and paper technology expertise together into a single entity. Investments of up to EUR 40 billion will be made to acquire an estimated 30-50 new paper machines and modernise dozens more,” says Hannu Kivelä, Finpro’s Head of Industry, Forest Industry and Bioenergy.
China will be renewing its paper manufacturing over the next five years and will increase paper production capacity by approximately 20-30 million tons. Total paper production in China was about 93 million tons in 2011 compared to Finland’s annual production of 12–15 tons.
Changes due to increasing demand and environmental requirements
“Investments have been accelerated by stricter requirements concerning energy efficiency, emissions reduction, and water consumption combined with quality and efficiency targets. Rather than building new factories, China is modernising old production lines and building new ones in conjunction with existing factories,” explains Kivelä.
Finnish pulp and paper technology is at the forefront of international development and very desirable in China. The Chinese Paper Association offers large Chinese pulp and paper companies the opportunity to learn more about Finnish expertise as a whole.
“Large Finnish forest industry companies already have a presence in China, but now we’re opening the door for small and medium-sized companies to enter the Chinese market. Although paper and pulp production is growing primarily in Asia and South America, technology export is a chance for Finnish companies to turn the market change to their advantage,” states Kivelä.