In the second week of January, owners of the last 12 paper companies in Fuyang – known as the countr's "recycled paper and board production hub" two decades ago – signed commitment papers with the local authorities to stop production, evacuate all installations and return the land used by their mills in 2021. This not only marks the end of complete clear-out of paper industry in the area, which has affected more than 100 mills and over 8 million/mtpy of combined capacity, but also heralds the entry into the final stage of nation's current-round efforts to eliminate obsolete and environmentally unfriendly capacity in the paper industry!

Upgrades of China's paper industry began in 2010 and 40 million/mtpy of capacity were either phased out or replaced by large and better equipped capacity by 2015. Thereafter, however, the industry focus was driven by enhanced social calls and government requirements to "stay green in a circular economy". Available information showed that between 2015 and 2020, about 20 million/mtpy of capacity that failed to comply with the new rules and regulations were terminated. In Eastern China's Zhejiang Province alone, for example, more than 10 million/mtpy of obsolete and environmentally unfriendly capacity were eliminated!

In getting-rid of the unfit capacity, the industry is rejuvenated by fresh and aggressive investment headed by industry leaders in integrated pulp and paper projects with jumbo machines and most advanced technology in central, southwestern and southern China where there are rich fiber and water resources! More important, the country's paper industry is getting consolidated and directed by the top-10 companies, whose contribution to the whole industry production grew from 37% in 2015 to 46% by 2019. Had there been no COVID-19, which significantly slowed down start-up and gear-up runs of green-field projects, contribution by the top-10 to the overall industry production would have easily exceeded 50% in 2020! With more multi-million/mtpy pulp-paper integration projects planned, fully launched or scheduled to start-up by the top-10 companies, it is expected that their contribution to the country's paper industry, either by capacity or in annual output, will become overwhelming after 5 years.