Papermaking Industry

Zhanjiang is in the process of building a 20-sq-km papermaking industrial base in Mazhang district led by the papermaking behemoth Zhanjiang Chenming Pulp & Paper. The base will focus on developing the industries of pulping, papermaking, packaging, manufacturing pulp-paper equipment and logistics.

The first phase of papermaking project has come in at a cost of 15 billion yuan ($2.26 billion), and has achieved an annual output of 1 million tons of pulp and 650,000 tons of paper per year so far. Last year, its output of high-end printing & writing paper and paperboards reached 520,000 tons and 490,000 tons, respectively, generating 5.7-billion-yuan output value.

The second phase project will cost 2.7 billion yuan and is expected to produce 180,000 tons of cup paper and 190,000 tons of printing and writing paper.

Chenming Group has chosen Caotan town in Suixi county as the base for the second phase project and integrated production of pulp and paper, costing a total of 40 billion yuan. Upon completion, the base is expected to generate 39 billion yuan in industrial output value, 15 billion yuan in industrial value added and 7.9 billion yuan of profit and tax.

In the meantime, Zhanjiang's Donghai Island is focused on its own high-end papermaking projects. The special paper project of Zhanjiang Guanhao Paper Co involves 7.6 billion yuan investment and its second-phase construction is in full swing. The project's output is estimated at 750,000 tons to create 8 billion yuan in industrial output value, 700 million yuan in profit and over 400 million yuan in tax revenue.

Another high-end papermaking project is a partnership with China Paper Corp with planned investment of 15 billion yuan. Involving funds of 7 billion yuan, its first phase project is slated to begin construction in the second half of this year. When completed, its annual output is predicted to top 2 million tons of high-grade white cardboard.