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China calling for more outdated pulp and paper machines to close by year's end

14 Nov 2013 − 

China will remove more outdated pulp and paper capacity from the Chinese market in order to advance economic restructuring. Around 300 companies are requested to close down obsolete machines.

China's pulp and paper industry should remove more than 7.4 million t of outdated capacity from the market by the year's end. To reach this goal, the Chinese Ministry of Industry and Information Technology (MIIT), which is in charge of developing the industry sector in the People's Republic, published a list of companies that were asked to idle obsolete production machines by the end of September and close them permanently by the end of 2013. This list is the second of its kind released this year after capacity closures were announced for 19 different sectors in July.

Some 300 pulp and paper companies are affected. Their machines are too small and thus ineffective and cost-intensive, cause too much pollution, infringe land usage rights or do not make products of adequate quality.

The People's Republic hopes that the production curtailments will not only advance the country's economic restructuring, but also reduce surplus supply. The MIIT's Minister Miao Wei noted that the situation remained challenging, as new capacity has long since surpassed the amount taken out of service.

Notwithstanding this situation, the paper and board industry had seen its growth weaken in 2012 amid record closures of almost 10 million t of pulp and paper capacity. This growth rate had slowed to 3.1 % compared with an average of 10 % to 13 % in years past.

Find the entire article and any associated background information in EUWID Pulp and Paper no. 47.

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