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Booming Specialty Paper Industry In China
2020-06-30 10:05chinapaperonline.com
Contrary to bumpy performance of some grades of paper and board, China’s specialty paper has performed generally positive since 2000 as output surging 533% while consumption up 286% in the two-decade period! Most significant was from 2009 when growth of production began to outpace consumption and extended the annual lead to 1 million metric tons after 2015, according to data from China Paper Association (CPA).

During the two-decade growth, the industry phased out a number of products that were no longer or least consumed, cone paper for woofers for instance, and added instead an increasing variety of new items developed in line with the progress of electronic, insulation, auto and other industries. Though categorized into several large groups such as home decoration, industrial insulation, electronic and auto application by tradition, and predominantly produced by small companies in the coastal provinces of China, the industry has seen more investment and participation of large companies who are capable of completing the whole process from base paper production to end-product conversion since 2015! Today, there are 22 publicly traded specialty paper companies in China at combined annual sales over RMB20 billion!

Still, China’s specialty paper production accounts for less than 5% in the world total and much of the products are relatively low-value-added for home decoration, cigarette filter and electrolytic capacitor business. Each year, China exports 1 million metric tons of specialty paper to neighboring Asian countries and at the same time imported much-needed and high-tech grades, including automotive filter, battery separator and aramid fiber paper, from USA, Germany, Japan and other developed countries.

Market analysts believe the industry will continue its growth in the next decade, with greater focus on development of new grades, such as fresh and moisture-proof packaging paper, sterile packaging paper, anti-counterfeiting packaging paper, ultra-strength packaging paper, along with on-going improvement in existing grades. No doubt, specialty paper will join industrial packaging paperboard and tissue paper in forming the future of China’s paper industry.

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