Early last year TWM revealed the core issues facing the Chinese tissue industry during 2023, as reported by its national trade body, China’s National Household Paper Industry Association (CNHPIA). The new annual report for 2024 is now in, and is carried below.
Given the dramatic advances made in 2023 in technology, in market competition and innovation, and in production levels across the whole supply chains through ‘collaborative growth,’ CNHPIA urged companies to meet the major problem of overcapacity by investing “rationally.”
Have they done that? They have certainly invested and stepped-up production, with new mills and new machines. Previous paper companies have continued their transition to tissue. With the home market saturated, exports have risen.
Here, TWM highlights the main points – and weighs its projections against wider industry trends.
2024 saw 30 companies from 11 provinces, cities, and autonomous regions launch new capacity with 70 tissue machines put into operation. ‘Modern production’ capacity increased by around 1.648m tons per year.
The integration of pulp and paper companies continued supply chain improvements, adding significantly to output. (China’s tissue and hygiene paper market is projected to reach $70.49bn in revenue by 2024: CAGR of 7.19% projected through to 2028.)
Technology improved manufacturing, product quality, and allowed category segmentation … all under the banner Wider, Faster, Greener.
With local consumers well catered for, exports dominated the market. January to November saw a growth of 23.49%, reaching 1.234m tons, valued at $2.19bn year-on-year. Imports stood at 33,600 tons, down slightly on 2023.
‘Social welfare responsibilities’ were met. These included provisions for the elderly, supplying products to victims in natural disaster areas, promoting women’s health, supporting medical advances, youth development and environmental protection efforts.
New paradigm’ quickly developed parent issue roll production across the supply chain
After 30 years of rapid development, China’s tissue paper industry has made significant progress in production technologies, product quality, and equipment manufacturing. In 2024, the industry has witnessed increased modern production capacity, advanced intelligent manufacturing, enhanced product quality, and segmented product categories.
Meanwhile, a new development paradigm has quickly emerged within the industry, with increasing production concentration of parent tissue roll. Upstream and downstream enterprises in the industry chain utilise respective strengths for win-win cooperation. The development and changes in the industry over the past year form four main aspects.
PART ONE: CAPACITY GROWTH IN THE INDUSTRY
Projects launched in 2024: Modern production capacity increased by around 1.618m tons per year. A total of 30 companies from 11 provinces, cities, and autonomous regions launched new capacity. Some 70 tissue machines were put into operation in total. Among them, 65 tissue machines made in China dominated in the new capacity and were mainly placed in Shanxi, Guangxi, Hubei, and Hebei.
Secondly, the industry saw an accelerated formation of a new industrial paradigm and improved industry chain.
Integrated pulp and paper enterprises are expanding their capacity to drive collaborative growth of the industry chain. Companies such as Lee & Man, Taison, Shaoneng, Sun Paper, Asia Symbol, and Liansheng which joined the paper industry in recent years have further expanded their production capacity in 2024. Compared to 2023, an additional 485,000tpy was added, bringing their combined total capacity to 4.405m tons per year. These companies leverage their advantages of pulp and paper integration, primarily producing and selling parent tissue roll. This fosters complementary strengths and win-win cooperation between brand manufacturers and pulp and paper manufacturers. Specifically:
1: Lee & Man
2023 Designed capacity/(10,000tpy): 132.5
2024 Designed capacity/(10,000tpy): 147.5
2: Taison Technology (Group) Co.
2023 Designed capacity/(10,000tpy): 125.5
2024 Designed capacity/(10,000tpy): 141.5
3: Shandong Sun Paper Co.
2023 Designed capacity/(10,000tpy): 37
2024 Designed capacity/(10,000tpy): 49.5
4: Shaoneng Group
2023 Designed capacity/(10,000tpy): 38
2024 Designed capacity/(10,000tpy): 38
5: Asia Symbol
2023 Designed capacity/(10,000tpy): 35
2024 Designed capacity/(10,000tpy): 35
6: Liansheng Pulp & Paper (Zhangzhou) Co.
2023 Designed capacity/(10,000tpy): 24
2024 Designed capacity/(10,000tpy): 29
Additionally, Liansheng Pulp & Paper (Zhangzhou) Co. further expanded its pulp production capacity in July 2024 by launching a 1.66m tons per year bleached sulphate pulp project.
Royal Golden Eagle acquired Vinda, and the company continues to leverage its upstream supply chain advantages in energy, pulp, and parent tissue roll, along with global industry resources connectivity. This will improve Vinda’s management efficiency, profitability, and strategic synergies.
Golden Hongye further increased capacity to elevate market competitiveness among top brands. Golden Hongye (Nantong) Co. launched the phase one tissue paper project with capacity of 780,000tpy in 2022. In 2024, phase two tissue paper project, with capacity of 1.26m tons per year, finished all approval procedures and is ready for construction.
PART TWO: NEW TECHNOLOGIES AND PRODUCTS
In 2024, tissue machine manufacturing continues to improve, product quality continues to upgrade, and product categories further segmented.
Tissue machines – wider, faster, and greener
China’s tissue machines achieved technological breakthroughs, reducing long-fibre proportion, and lowering electricity consumption while improving product quality. For example, crescent tissue machines reached a maximum width of 4,200mm with a top speed of 1,850m/min. Hand towel machines reached a maximum width of 5,600mm and speed of 800m/min.
China’s soft boot press technology was firstly used in production. Headbox design was also optimised, and permanent magnet motors and maglev turbine vacuum pumps were applied.
Post-processing and packaging equipment – more flexible, intelligent, and eco-friendly
Post-processing and packaging equipment saw enhanced flexibility. Examples include dual-function folding machines for both bottom-draw and regular tissue production; bottom-draw production lines with large width of 3.6m using non-rewound parent tissue roll to improve efficiency. Fully automated packaging machines support brown paper or plastic films as packaging materials.
Further enhanced applications of digital online control and remote IoT systems in post-processing production lines. Additionally, two new equipment including “ultra large width” hand towel production lines using hollow constant-pressure adsorption and tissue folding machines equipped with new vacuum pumps for vacuum adsorption achieved energy savings and noise reduction.
Related equipment and accessories – more energy-efficient
High-consistency refiners help retain fibre length, lowering long-fibre ratio and improving bulkiness, tensile strength, and burst resistance of the finished products. Dual disc refiners provide refining by section to avoid uneven abrasion of discs.
Felts for crescent tissue machines show further improvement in saving steam and electricity used in producing each ton of paper.
Advanced water treatment devices, such as resource recovery towers and integrated decolorisation-sterilisation units, optimise white water treatment regarding energy savings and resource recycling.
New products – more comfortable and segmented
With TAD and TAD-like technologies or upgraded embossing techniques, companies launched softer and more skin-friendly facial tissues and kitchen towels with improved bulkiness, water absorbency, and oil absorbency.
New lotion tissues contain natural moisturising ingredients to cater to mothers, babies, and individuals with sensitive skin.
A wider range of bottom-draw products now includes not only bottom-draw toilet tissue and facial tissues but also bottom-draw kitchen towels, expanding usage scenarios.
PART THREE: IMPORT AND EXPORT
China’s tissue paper market currently meets local demand in terms of production output and variety. Exports dominate the import/export market. Customs data shows that from January to November 2024, tissue paper exports grew by 23.49%, reaching 1.234m tons with an export value of $2.19bn, a year-on-year increase of 2.76%. Exports have become an integral part of the tissue paper consumption market.
In the same period, imports remain at a lower-level totalling approximately 33,600 tons, slightly higher than the same period last year. Annual imports of tissue paper generally range from 28,000 to 50,000 tons, having minimal impact on the Chinese market.
Equipment exports
China’s tissue machine manufacturers such as Baotuo, Qingliang, Xinhe, Bingzhi, and Changda, as well as post-processing and packaging machine manufactures including Baosuo, Dechangyu, OK, Soontrue, and One-paper achieved robust export performance in 2024. Several tissue machines and hundreds of processing equipment were exported globally.
NEW MODERN CAPACITY IN DIFFERENT REGIONS FROM JAN – DEC 2024:
PART FOUR: FULFILLING SOCIAL RESPONSIBILITY
In 2024, tissue paper companies actively fulfilled their social responsibilities by launching various social welfare activities, including:
1. Organising elderly programmes and donating supplies to disaster areas.
2. Promoting women’s health and supporting medical development.
3. Focusing on youth development and contributing to environmental protection efforts.
In summary, 2024 saw further growth in modern production capacity within the tissue paper industry. With continued R&D and innovations, enterprises enhance product quality and intelligent manufacturing levels while fulfilling their social responsibilities. With collaborative efforts across the supply chain, the industry has taken significant steps toward high-quality development.
