The hottest paper industry in Zhejiang Province 20

Zhejiang paper industry 2019 annual operation report and 2020 outlook

release date: Source: Zhonghua paper author: Lu Wenrong

in 2019, under the dual pressure of supply-side expansion and demand-side contraction, Zhejiang paper industry faced difficulties in business operation, industry profits significantly shrunk, and the output of machine-made paper and paperboard significantly decreased. The output of machine-made paper and paperboard was 17.684 million tons, a year-on-year decrease of 7.9%; The total profit was 3.978 billion, a year-on-year decrease of 10.6%

looking forward to 2020 and the future, the paper industry in Zhejiang Province has a solid foundation, which is bound to accelerate the creative transformation and upgrading of the industry and create development in the future

in 2019, facing the complex situation of significantly rising risks and challenges at home and abroad, the majority of enterprises adhere to the general tone of seeking progress in stability, adhere to the supply side reform as the main line, adhere to highlight the stability of kinetic energy, production and safety, focus on high-quality and high-efficiency development, and enhance their competitiveness. The modernization of traditional papermaking industry in Zhejiang Province has reached a new level, and the high-level construction has achieved new development

this year, the paper industry in Zhejiang Province was affected by the macroeconomic slowdown and the intensification of Sino US trade frictions. Under the dual pressure of the expansion of the supply side and the contraction of the demand side, enterprises had difficulties in operation and the profits of the industry decreased significantly. This year, the negative list policy of papermaking in Fuyang, Haiyan and other regions of Zhejiang Province was stepped up, and the increasing shortage of papermaking fiber raw materials led to a significant decline in the output of machine-made paper and paperboard

in this year, we fully implemented the spirit of the 19th CPC National Congress and the central economic work conference, adhered to seeking progress and good in stability, and actively promoted the green development, innovative development and high-quality development of the industry. We have achieved overall stable operation of the industry, significantly improved scientific and technological innovation and industrial competitiveness, and made gratifying achievements in the construction of a strong papermaking province

overview

according to the statistics of Zhejiang Provincial Bureau of statistics, there were 266 paper-making enterprises above Designated Size in the province in 2019. The average employment of papermaking enterprises in the province was 49368, a year-on-year decrease of 10.7%. The output of machine-made paper and paperboard was 17.684 million tons, a year-on-year decrease of 7.9%; The total industrial output value (current year price) was 84.306 billion, a year-on-year decrease of 11.6%; The main business income reached 83.277 billion, a year-on-year decrease of 11.5%; The tax paid was 5.108 billion, a year-on-year decrease of 27.8%; The total profit was 3.978 billion, a year-on-year decrease of 10.6%. The accounts receivable of the whole industry were 20.6 billion, a year-on-year decrease of 7.3%, of which the inventory of finished products was 3.713 billion, a year-on-year decrease of 24.8%. The R & D expenditure was 1.843 billion, an increase of 10.7% year-on-year; This year, the depreciation of the whole industry was 2.640 billion, an increase of 5.4% year-on-year; A total of 3.51 billion employees' salaries were paid, an increase of 7.9% year-on-year; By the end of December 2019, the bank loan balance was 26.064 billion, an increase of 2.4% year-on-year. The total loss of loss making enterprises was 775million, an increase of 2.9% year-on-year

(1) quarterly operation at the beginning

the operation of Zhejiang paper industry in the first, second, third and fourth quarters of 2019 is shown in Table 1

(2) brief review of initial operation

generally speaking, the paper industry in Zhejiang Province entered a cold winter in 2019 due to the impact of the domestic economic slowdown and Sino US trade friction

from the perspective of the trend of the whole year, it is generally high from the front to the bottom (especially packaging paper). In the first half of the year, the market was relatively sluggish and the demand shrank. In order to reduce the inventory, the enterprises that produce packaging paper shut down from time to time for maintenance, and the paper price is running at a low position

moreover, affected by the national solid waste policy, the import of waste paper is further restricted, and the shortage of papermaking fiber raw materials is aggravated, which seriously restricts the development of the papermaking industry, and the existing production capacity cannot be brought into full play

by the second half of the year, especially at the end of the third quarter and the fourth quarter, the situation of packaging paper had improved, and the price was at a high level. For example, the price of high-strength corrugated base paper has been raised since late August. By the end of December, the continuous competition with chain drive is quite fierce, and the price has been raised as many as 10 times. The business condition of packaging paper enterprises has improved, and the profits have rebounded

for the special paper and household paper enterprises in Zhejiang Province, which use commercial wood pulp as raw material, most of them are in good operation condition because the commercial wood pulp is running at a low level throughout the year and the enterprises are in a low-cost state

Fuyang, which was affected by the negative list policy implemented by the paper industry, began to start the retirement of industrial parks in three towns in Jiangnan in November 2017 after six rounds of renovation. By March 2019, 66 paper-making enterprises had been shut down and dismantled successively, and the paper-making capacity was 4.9 million tons, accounting for 62.8% of Fuyang's paper-making capacity. By October 2, 2019, Fuyang district government plans to dismantle 29 paper-making enterprises in Jiangnan and vacate the paper-making capacity of 2.149 million tons. So far, there are only less than 10 paper-making enterprises in Lingqiao Industrial Zone in Fuyang Jiangnan, which is not within the scope of previous rounds of closures, but all paper-making enterprises in Jiangnan will be cleared by the end of 2020

Haiyan County also implemented a negative list policy for small and medium-sized paper enterprises in its territory. In 2019, following the closure of Haili paper industry, the county government arranged the closure and retirement of Zhejiang Hualian paper industry and Jiaxing Dayang paper industry in July and October 2019, respectively

in the face of difficulties in manufacturing operations, the State Council and the provincial government have successively issued some policy dividends in order to stabilize enterprises, ensure safety and promote development. On March 5, 2019, the government work report of the State Council proposed that the value-added tax rate of 16% implemented from May 2018 should be adjusted to 13%; Later, a series of tax reduction and fee reduction policies were introduced. The state has also investigated the implementation of enterprise tax reduction and fee reduction policies. This reduces the tax burden of enterprises to a certain extent and eases the pressure on enterprises. According to the statistics of the Provincial Bureau of statistics, the value-added tax payable by the paper industry in Zhejiang Province in 2019 decreased by 30.7% over the same period in 2018. The visible effect is obvious

influenced by the national solid waste policy, in order to deal with the contradiction of the shortage of paper fiber raw materials, some leading domestic packaging paper enterprises have deployed overseas to find a way out. Zhejiang Jingxing paper industry and Xinshengda group started to invest in the construction of papermaking and recycled pulp projects in Malaysia

in order to deal with the contradiction of raw materials and improve the structure of papermaking raw materials, Ningbo Asia Pulp and Paper Co., Ltd. started the construction of 300000 tons of chemical mechanical wood pulp project

the concentration of production capacity was further improved, and the benefits were significantly concentrated to large enterprises. In this year, the output value of 9 small and medium-sized enterprises in Deqing County decreased by 22.3%, and the profit decreased by 70.6%. The output, output value and sales revenue of six small and medium-sized paper-making enterprises in Shengzhou decreased significantly. In Longyou County, where special paper enterprises are concentrated, the output, output value, operating income, profits and taxes have increased to varying degrees

situation of backbone enterprises

(1) regional distribution of machine-made paper and paperboard output and the number of papermaking enterprises

see Table 2 for the regional distribution of machine-made paper and paperboard output and the number of papermaking enterprises completed in the province in 2019

(2) list of enterprises with an output of more than 300000 tons of machine-made paper and paperboard

see Table 3 for the list of enterprises with an output of more than 300000 tons of machine-made paper and paperboard in Zhejiang Province in 2019. The 11 enterprises in Table 3 achieved a total output of 9.2989 million tons, accounting for 52.58% of the province's output

(3) list of tissue enterprises with an annual output of more than 100000 tons

the list of tissue enterprises with an annual output of more than 100000 tons in Zhejiang Province in 2019 is shown in Table 4

(4) list of the top 10 enterprises that have completed the industrial output value

the list of the top 10 papermaking enterprises that have completed the industrial output value in 2019 is shown in Table 5. The total industrial output value of these 10 papermaking enterprises is 41045 billion, accounting for 48.65% of the total industrial output value of the province

(5) list of the top 10 enterprises paying tax payments

the list of the top 10 papermaking enterprises paying tax payments in 2019 is shown in Table 6. These 10 enterprises paid a total of 1.708 billion taxes, accounting for 33.43% of the total taxes paid in the province

(6) list of top 10 enterprises that have achieved profits

the list of top 10 enterprises that have achieved profits in 2019 is shown in Table 7. These 10 enterprises have achieved a total profit of 3.539 billion, accounting for 88.96% of the total profits of the province

major new construction and technological transformation projects

(1) the 400000 ton packaging paper project of Zhejiang Huachuan Industrial Group Co., Ltd.

the project was successfully put into operation on November 28, 2019. With a total investment of 700 million yuan, covering an area of 67 mu, it adopts a 6600mm wide paper machine imported from Finland, and the speed reaches 1400m/min to produce 60-140g/m2 high-strength corrugated base paper. The designed daily output is 1200 tons. After the project is put into operation, the new output value will be more than 1 billion, and the profit and tax will be 150 million

(2) 300000 ton chemical mechanical pulp project of Ningbo Asia Pulp and Paper Co., Ltd.

the project was officially started on July 17, 2019. With a total investment of 890million yuan, a chemical mechanical pulp workshop with an annual output of 300000 tons and related supporting chip conveying systems will be built. This project is a new measure of Asia Pulp and Paper Co., Ltd. on the road of high-quality development with the goal of building a resource-saving and environment-friendly modern paper industry. The completion of the project will provide high-quality papermaking fiber materials, make up for the shortage of waste paper, adjust the structure of papermaking fiber raw materials, and improve product quality. The project is expected to be completed and put into operation in October 2020

(3) Crane Co., Ltd. has four projects, two of which have been completed

first, the annual output of 35000 tons of high-end food packaging base paper, digital inkjet transfer paper project, with a total investment of 142.13 million, has been completed and put into operation in November 2019

second, Zhejiang Tangfeng Special Paper Co., Ltd., a subsidiary of crane, has an annual output of 12000 tons of cigarette packaging paper project, with a total investment of 79.76 million, which was completed and put into operation in September 2019

third, in the annual output of 220000 tons of high-grade paper-based new materials project of Zhejiang Zhefeng new materials Co., Ltd. under Xianhe, 4400mm/1000m/min long multi cylinder paper machine and 4800mm/500m/min long cylinder paper machine have been ordered and are being installed. In addition, the planning and design of two long multi cylinder paper machines, 3250mm/500m/min and 3650mm/600m/min, have begun, and the civil engineering is in progress

fourth, the technological transformation project of paper-based new materials with an annual output of 100000 tons in the headquarters of Xianhe has four production lines with a total investment of 51.42 million. One of the production lines with an annual output of 20000 tons has been completed in October 2019; A production line with an annual output of 30000 tons has completed equipment procurement, and the paper machine is under installation; Other production lines are in progress, and the construction period is from December 2019 to September 2022

(4) Zhejiang Jinli Environmental Protection Paper Co., Ltd. has an annual output of 1million tons of environmental friendly recycled high-grade packaging paper project

the total investment of the project is 2.556 billion, which is constructed in two phases. In the first phase, the PM1 production line with an annual output of 300000 tons of high-strength single-sided gray paperboard and the PM2 production line with an annual output of 200000 tons of low gram weight corrugated base paper will be constructed. Now PM1 paper machine and auxiliary production line equipment have been ordered, and the equipment is being installed and debugged; Another production line, civil engineering, is in progress

(5) household paper project of Zhejiang jiajiafa Paper Industry Co., Ltd.

Zhejiang jiajiafa Paper Industry Co., Ltd. plans to invest 300million in early 2019 to produce household paper by using the company's existing plant and open space and the previously approved 60000 ton capacity, while adding 70000 tons of technological transformation capacity. It is constructed in two phases, with four lines in each phase. The first production line of the current phase I has been successfully put into operation on March 11, 2020, producing 14-15g/m2 various household paper. The crescent high-speed paper machine is adopted, and the designed annual capacity of a single machine is 18000 tons; The remaining three paper machines in phase I will start production in succession soon

scientific research and technological progress

(1) Zhejiang paper industry invested 1.843 billion in R & D in 2019 (according to the statistics of the Provincial Bureau of Statistics), an increase of 10.7% over the same period last year. This shows that all paper-making enterprises attach great importance to scientific and technological progress. In order to become stronger, enterprises must increase investment in R & D costs

for example, Zhejiang Rongsheng Environmental Protection Paper Co., Ltd. invested 73.0371 million R & D expenses in 2019, accounting for 4.36% of the company's operating revenue. The annual R & D expenses invested by Crane Co., Ltd. reached 105.9677 million, up from 2018