megamenu-bg

Producers use Fisher's business intelligence to understand their operating and competitive environment.

Mill suppliers use Fisher’s business intelligence to get the most out of product development, sales, and marketing investments.

Corrugate/box producers, suppliers and purchasers use Fisher’s intelligence to understand packaging markets.

Investors use Fisher’s business intelligence resources to identify opportunities and evaluate risks and potential returns.

x
 
FI Insights

Can Semi-Chemical Pulp Give Chinese Containerboard Producers a Boost in Flexibility?

June 09, 2021
Author: Amy Chu

Lee & Man Paper recently placed an order with Andritz for a semi-chemical pulp production line for its mills in Dongguan, Guangdong Province and Jiujiang, Jiangxi Province, respectively — which are both scheduled to start up by the end of 2022. The two production lines will use eucalyptus as a raw material to produce semi-chemical pulp, which is a product between sulfate chemical pulp and mechanical pulp, that provides high-quality fiber for the production of industrial packaging paper, such as corrugating medium and other grades.

Mr. Li Wenbin, President of Lee & Man Paper, stated, “We have decided to focus on our own production of virgin pulp to replace import virgin pulp and recycled pulp. These two new production lines will make us more self-sufficient in pulp demand and less vulnerable to market fluctuations.”

Since China issued a restriction on imported RCP in 2017 that has resulted in zero RCP imports in 2021, domestic containerboard manufacturers have been confronted with the shortage of RCF raw materials to varying degrees. Many enterprises have been seeking to import RCP substitutes, including conventional products like dry ground pulp, wet lap pulp, reel pulp and sheet pulp. However, different types of pulp products also carry additional challenges related to quality, tariffs, freight, etc. which are difficult to overcome in the near term (see China Insight April 2021 for details).

By employing a semi-chemical pulp production line utilizing raw materials in China, Lee & Man can better address market trends and provide high-quality end products. Currently, the company operates five paper mills in China. Except for the integrated bamboo pulp production line at its Chongqing mill, the other paper mills are RCF based (Figure 1). With these pulp lines, plus the semi-chemical pulp lines, Lee & Man basically covers all the main pulp grades, which allows the company to better handle market fluctuations.

Capacity Distribution of Lee & Man’s Pulp Lines in China

June CI image

Figure 1

Source: FisherSolve™ Next

 

China Insights request a sample

Back to Blog

You May Also be Interested In

August 09, 2021
Maine’s New EPR Fee Could Set Precedent for Packagers
On July 13, Maine Gov. Janet Mills signed the Extended Producer Responsibility (EPR) legislation into law making the...
Continue Reading
August 02, 2021
Stora Enso's Mill Closures Raise Questions for Uncoated Woodfree Producers
The ground continues to shift across Europe as demand patterns in the uncoated woodfree segment have driven...
Continue Reading
June 10, 2021
After Investor Purchase, Whakātane Mill Will Remain in Operation
In March of this year, Bay Plenty’s Whakātane mill announced that it was expecting to shut down after nearly 80 years...
Continue Reading