Twelfth Five-Year Development Plan of Paper Industry

Translation to English by Finpro ry / China Pulp and Paper Modernization Project.

Twelfth Five-Year Development Plan of Paper Industry

National Development and Reform Commission

Ministry of Industry and Information Technology

State Forestry Administration

December 2011


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TWELFTH FIVE-YEAR DEVELOPMENT PLAN OF PAPER INDUSTRY .......................................... 1

I. REVIEW OF THE ELEVENTH FIVE-YEAR PLAN .............................................................................. 4

(I) MAIN ACHIEVEMENTS ............................................................................................................................. 4 (II) EXISTING PROBLEMS ................................................................................................................................ 7

II. DEVELOPMENT SITUATION ................................................................................................................ 9

(I) WORLD PAPER INDUSTRY .......................................................................................................................... 9 (II) CHINA PAPER INDUSTRY ........................................................................................................................ 11

III. GUIDING IDEOLOGY, BASIC PRINCIPLES AND DEVELOPMENT GOALS ........................... 13

(I) GUIDING IDEOLOGY ................................................................................................................................. 13 (II) BASIC PRINCIPLES .................................................................................................................................. 14 (III) DEVELOPMENT GOALS .......................................................................................................................... 15

IV. MAIN TASKS .......................................................................................................................................... 17

(I) IMPROVE RAW MATERIAL STRUCTURE, INCREASE DOMESTIC SUPPLY ...................................................... 17 (II) HEIGHTEN INNOVATION ABILITY , ENHANCE TECHNICAL LEVEL ............................................................. 19 (III) OPTIMIZE INDUSTRIAL LAYOUT, REALIZE RATIONAL RESOURCE ALLOCATION ...................................... 23 (IV) PUSH FORWARD CLEAN PRODUCTION, PROTECT ECOLOGICAL ENVIRONMENT ...................................... 26 (V) OPTIMIZE CORPORATE STRUCTURE, PROMOTE MERGER AND REORGANIZATION .................................... 29 (VI) REGULATE PRODUCT STRUCTURE, IMPROVE PRODUCT QUALITY .......................................................... 31 (VII) SET UP SAVING MODE, ADVOCATE RATIONAL CONSUMPTION .............................................................. 32

V. KEY PROJECTS ...................................................................................................................................... 33

(I) FORESTRY-PAPER INTEGRATION PROJECT ................................................................................................ 34 (II) CLEAN PRODUCTION AND RESOURCE UTILIZATION ENGINEERING .......................................................... 35 (III) UPGRADING AND UPDATING OF PRODUCTS AND INDEPENDENT INNOVATION OF EQUIPMENT ................ 37

VI. POLICIES AND MEASURES................................................................................................................ 39

(I) STRENGTHEN POLICY SUPPORT, PROMOTE FORESTRY-PAPER INTEGRATED DEVELOPMENT ..................... 39 (II) ENCOURAGE INDEPENDENT RESEARCH AND DEVELOPMENT, DEVELOP DOMESTIC EQUIPMENT .............. 39 (III) PERFECT INCENTIVE POLICY, PROMOTE ENERGY SAVING AND EMISSION REDUCTION ........................... 39 (IV) PROMOTE WASTE PAPER RECYCLING, GUIDE GREEN CONSUMPTION ..................................................... 40 (V) ESTABLISH AND REVISE RELEVANT STANDARDS, PERFECT STANDARD SYSTEM ..................................... 40 (VI) PERFECT FOREIGN CAPITAL POLICY, GUIDE INVESTMENT DIRECTION ................................................... 40 (VII) RENDER GREAT SUPPORT, PROMOTE OVERSEAS INVESTMENT ............................................................. 41 (VIII) INCREASE INVESTMENT, EXPAND FINANCING CHANNEL ..................................................................... 41 (IX)ESTABLISH PERFECT SYSTEM, COPE WITH TRADE FRICTION ................................................................... 41 (X) GIVE FULL PLAY TO MEDIATING ROLE, PUSH FORWARD THE IMPLEMENTATION OF THE PLAN ................ 42

VII. IMPLEMENTATION OF THE TWELFTH FIVE-YEAR PLAN .................................................... 42

CHINA PULP AND PAPER MODERNIZATION PROJECT SUMMARY ........................................... 43


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Paper industry is closely bound up with national economic development

and social civilization, paper and paper board consumption level is an important yardstick for a nation’s degree of modernization and civilization. Ever since the implementation of the National Special Plan of the Forest-Paper Integration Project Construction in “the Tenth Five Years” and 2010, along with the large-scale reutilization of waste paper, the paper industry uses waste paper primarily and other renewable resources auxiliarily, such as wood, bamboo, reed, stalk, etc. as raw materials, through clean production, realizes the resource-production-consumption-resource recycling benign circulation, becomes an important fundamental raw material industry and a new economic growth point with the distinguishing features of circular economy. The paper industry is capital and technology-intensive, creates considerable scale effect, has large market capacity and great development potential, features largely in high industry association, and plays an important role in driving the development of the related industries, such as forestry, agriculture, environmental protection, printing, packaging, chemical industry, mechanical manufacture, automatic control, traffic, etc.

China is placed in the first position for the production and consumption of paper and paper board. Along with the material regulation of world economic pattern and the obvious accelerated transformation of Chinese economic society, China paper industry faces the increasingly aggravating restrictions of resource, energy and environment, and it is an urgent need to accelerate structural readjustment. In order to make traditional paper industry smoothly transform to modern paper industry featuring largely in sustainable development and guide the healthy development of paper industry during the “Twelfth Five-Year Plan” period, in accordance with the Twelfth Five-Year Plan for National Economic and Social Development of the People’s Republic of China, the Twelfth Five-Year Development Plan of Paper industry is hereby established.


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I. Review of the Eleventh Five-Year Plan

(I) Main achievements

1. Production maintains steady growth, operating quality is obviously heightened. In 2010, the output of paper and paper board is 92,700,000t, increased by 65.5% than 2005, with annual average growth rate of 10.6%; the consumption is 91,730,000t, increased by 54.7% than 2005, with annual average growth rate of 9.1%. Paper industry develops rapidly, the above-scale enterprises’ gross industrial output value of paper and paper board increases from RMB 262.2 billion yuan to RMB 585.0 billion yuan, increased by 123.1%, with annual average growth rate of 17.4%; the total tax and profit payment increases from RMB 22.5 billion to RMB 50.0 billion yuan, increased by 122.2%. The overall labor productivity rises from 73.4t/person/year to 125.7t/person/year, increased by 71.3%. Presently, China’s per capita paper and paper board consumption is 68kg, which is higher than the world average.

2. Forestry-paper integration is fruitful, raw material structure is somewhat improved. Ever since the National Special Plan of the Forest-Paper Integration Project Construction in “the Tenth Five Years” and 2010 was implemented in 2000, the whole society has reached a common recognition that forestry-paper integration is a successful practice of China paper industry for the development of circular economy and the implementation of scientific development view. By fully utilizing domestic and foreign resources, we have energetically pushed forward the forestry-paper integration project construction, strengthened the domestic reutilization of waste paper and shut down the outdated straw pulp production line, heightened domestic wood pulp and waste paper supply capability, and improved the raw material structure. The consumption of wood pulp increases from 11,300,000t in 2005 to 18,590,000t in 2010, accounting for 22.0% of the total pulp consumption, specifically, the consumption of homemade wood pulp increases from 3,710,000t to 7,080,000t, the proportion rises from 7.1% to 8.4%; the consumption of waste pulp increases from 28,100,000t to 53,050,000t, the proportion rises from 54.0% to 62.7%, among which the proportion of domestic waste pulp rises from 27.8% to 38.0%; the


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non-wood pulp consumption basically maintains stable, the proportion drops from 24.3% to 15.3%.

3. Introduction and innovation are perfectly combined, technical equipment level is heightened. China paper industry combines the imported technical equipment with independent innovation and contributes to some large-scale projects with high technical starting point and advanced equipment. Over 140 sets of 100,000t/a and above diversified high and medium grade paper machines and paper board machines are increased, 34,000,000t advanced capacity is newly formed, lots of excellent enterprises take the lead in completing the transformation from traditional paper industry to modern paper industry, China has edged into the advanced ranks in the world.

Domestic pulp and paper equipment manufacturing enterprises, through independent innovation and the introduction, digestion and absorption of advanced technology, have successfully developed some high and new technologies and equipment with independent intellectual property, for example, 100,000t/a~150,000t/a bleached kraft wood (bamboo) pulp and alkali recovery plant; 150,000t/a~200,000t/awaste paper pulp complete equipment; 100,000t/a and below diversified fine paper machines, 200,000t/a~300,000t/a paper and paper board machines, etc. Meanwhile, some state-level key paper laboratories, engineering research centers and enterprise technology centers are established, which can guide, support and drive the structural readjustment, upgrading and updating of China paper industry.

4. Product structure is somewhat optimized, market supply and demand is basically balanced. By strengthening technical research and development and improving process technique and equipment, the paper and paper board product structure adapts to the consumption demand in a better way and changes from quantity type to quality type, from few variety to great variety. The supply capability of high grade paper and paper board is boosted; in particular, the newsprint paper, coated printing paper, white carton board, tissue paper, etc. can meet domestic market demand, it provides the sufficient supply of high grade paper and paper board and offers a satisfactory solution for the contradiction between supply and demand. The net import of paper and paper board is 3,300,000t in 2005, but the net export of paper and paper board is 970,000t in 2010. The productive ratio of high grade products changes


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from 20% to 37%, the product quality of individual variety like newsprint paper, copper printing paper, etc. reaches the world advanced level.

5. Industry layout tends to be reasonable, general pattern is basically formed. Along with the regulation of the national and regional policies on the raw materials for paper industry, the paper industry gradually develops from north to south as a whole. In the north of the Yangtze River, the proportion of paper and paper board output in the national total drops from 43.3% in 2005 to 37.4% in 2010; in the south of the Yangtze River, the proportion rises from 56.7% to 62.6%. In the eastern, central and western regions, the layout pattern is relatively stable, the eastern region’s output accounts for over 70% of the national total; the central region’s output accounts for approximately 20% of the national total; the western region’s output accounts for less than 10% of the national total. The number of key provinces (regions, ci t ies) whose annual output exceeds 1,000,000t increases from 11 in 2005 to 14 in 2010, the output of these provinces (regions, ci t ies) accounts for 91.*% of the nat ional total .

6. Corporate reorganization is accelerated, industrial concentration is heightened. The nationwide cross-regional merger and integration of many powerful enterprises promotes the evolvement of paper enterprises in the direction of group and scale development. A lot of modern paper enterprises with advanced production equipment, good credit and strong competitive power stand out. The paper industry organization structure is continually optimized. During the “Eleventh Five-Year Plan” period, the total output of the paper enterprises whose annual output of paper and paper board exceeds 1,000,000t increases from 7,910,000t to 26,740,000t, the proportion rises from 14.1% to 28.8% in the national total; the proportion of the output of 30 leading enterprises rises from 32.9% to 42.3%.

7. Pollution control is effective, resource consumption is greatly reduced. During the “Eleventh Five-Year Plan” period, China paper industry has made great efforts in environmental governance, practically put into practice the measures for energy saving and emission reduction, and focused on the comprehensive control of the straw pulp production enterprises and the paper enterprises in major pollution sources and key water basins. More than 2,000 pulp and paper


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enterprises are closed down, over 10,000,000t outdated capacity is washed out. The chemical oxygen demand (COD) discharge amount of the major pollutants in the wastewater arising from papermaking is 952,000t in 2010 and 1,596,000t in 2005, decreased by 40.4%. The emission intensity drops from 0.069t to 0.018t per 10,000 yuan production value, decreased by 73.9%. During the “Eleventh Five-Year Plan” period, the mean comprehensive energy consumption (standard coal) per ton pulp drops from 0.55t to 0.45t; the mean comprehensive energy consumption (standard coal) per ton paper and paper board drops from 0.83t to 0.68t; the quantity of water intake per ton pulp, paper and paper board drops from 103m3 to 85m3; the average consumption of virgin pulp per ton paper and paper board drops from 427kg to 340kg. The completed advanced capacity’s quality, consumption quota, pollutant emission load reach the world advanced level.

8. Policies, laws and regulations are basically perfect, the development environment is continually improving. During the “Eleventh Five-Year Plan” period, the development environment construction of China paper industry is obviously accelerated, the related laws, regulations, laws and standards are gradually perfected and play an important role in forming a favorable environment for the development of modern paper industry. The associated regulations and policies are issued in succession, such as the National Special Plan of the Forest-Paper Integration Project Construction in “the Tenth Five Years” and 2010, Paper industry Development Policy, Catalogue for the Guidance of Industrial Structure Adjustment (version 2005), Catalogue for the Guidance of Foreign Investment Industries (revised in 2007), Adjustment and Revitalization Plan for Light Industry, the access condition of paper industry are tightened, the industrial development becomes more standard; the execution of Policy Outline of China Energy Conservation Technology and the Discharge Standard of Water Pollutants for Pulp and Paper Industry (GB3544-2008) make enterprises attach great importance to energy saving reconstruction and pollution control.

(II) Existing problems

1. There is a contradiction between the supply and demand of raw material. As the raw material forestry base construction is very slow in China and the raw material is in short supply, the non-wood pulp development is under the influence of the backward development of the


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new technology for clean production, plus the low recovery rate of domestic waste paper, the self-sufficiency rate of the paper fibre raw material can hardly be heightened, the contradiction between supply and demand becomes increasingly serious. The import volume of wood pulp is 11,370,000t in 2010 and 7,590,000t in 2005, increased by 49.8%; the import volume of waste paper is 24,350,000t in 2010 and 17,030,000t in 2005, increased by 43%, China paper industry’s degree of dependence upon imported fibre raw material is still over 40%.

2. The independent innovation ability is not strong. China paper industry lacks the independent innovation ability, the industry, university and research institute have not yet formed an organic integrity, greater efforts must be made in reinnovation after the introduction, digestion and absorption of advanced technology, China lacks the industrial outstanding achievements with independent innovation in regard to the development of new techniques, new equipment and new products. A lot of key equipment basically relies on import, such as the large cooking, screening and bleaching equipment, the high yield pulp plant, the high-speed head box, shoe press, calendaring machine, rewinder, etc.

3. Energy saving and emission reduction is a hard task. In China paper industry, the outdated capacity still accounts for approximately 35%, the consumption of material, water and energy is very high, it is the main source of pollution of paper industry, the discharge amount of chemical oxygen demand (COD) accounts for 47% of the whole industry’s total emission, there is a big gap between domestic outdated capacity and world advanced level in the product quality, material consumption and pollution load, it cannot reach the Discharge Standard of Water Pollutants for Pulp and Paper Industry (GB3544-2008), it is an urgent need to accelerate the reconstruction of outdated capacity or eliminate the outdated capacity.

4. The size of business is still small. In China paper industry, the large enterprise groups and backbone enterprises with international competitive power are just in small quantities, the influential power and driving force of these enterprises is to be boosted, there are a great number of small weak enterprises, and the scale effect of the whole industry is not remarkable. The above-scale paper enterprises’ gross sales are only equal to the gross sales of the world’s top 4 enterprises. In 2010, there are 3,724 above-scale paper enterprises in China,


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specifically, there are 33 large paper enterprises, accounting for 0.89%; there are 388 medium-sized enterprises, accounting for 10.42%; there are 3,303 small enterprises, accounting for 88.69%. It is necessary to change the present situation of China paper industry that is small-scale and scattered.

II. Development Situation

(I) World paper industry

During the “Twelfth Five-Year Plan” period, the worldwide readjustment of the industrial structure and the international division of labor proceeds smoothly, there is a profound change in the development pattern of world paper industry, the industry structural readjustment and transfer is further accelerated, the emerging economies will give full play to the late-mover advantage, realize the span development and become a main growth point in the world paper industry. Owning to the restrictions of resource, environment, effect, etc., the paper industry accelerates technical progress, achieves sustainable development in the direction of the high efficiency, high quality, high profit, low consumption, low pollution, low emission modern great industry, and features largely in large business scale, integrated technology, multifunctional products, clean production, resource conservation, environmental protection and low carbon, forestry-paper integration, management informatization, industrial globalization and green development.

1. The gravity center of world paper industry development continues to move towards the emerging economies. In the developed countries and regions, the paper industry enters into the steady development stage. In the developing countries and regions, thanks to the swift economic growth, the paper industry develops rapidly. The emerging economies like China, India, Brazil, Russia, etc. are becoming a main power for the growth of world paper industry, China ranks the first for the output of paper and paper board in the world, but China still has a great development space in the field of structural readjustment, technical upgrading, energy saving and emission reduction. For this reason, a lot of the world’s top-ranking pulp and paper transnational companies turn their gaze upon the developing countries, such as China, Brazil,


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Indonesia, etc. There will be a keen competition for resource, market and personnel in the future paper industry.

2. Papermaking raw material will be the focus of all countries. After years of continuous development, the international transnational paper companies have formed the forestry-paper integrated development mode and will attach more importance to the supply of papermaking raw material due to the tension of resource supply. In recent years, the international transnational paper companies have tried to control the forest land resource, cultivated the raw material forest base and built the wood pulp plant by all means in the countries and regions with abundant forest resource, such as Brazil, Chile, Indonesia, etc. Nearly all countries pay more attention to the reutilization of domestic waste paper resource. The world’s total waste paper recovery quantity increases from 182.6 million tons in 2005 to 223.4 million tons in 2010; the world’s total waste paper recovery rate rises from in 2005 to 56.6% in 2010. The recovery rate universally exceeds 60% in the developed countries, it is over 80% in Korea and Germany, it is 43.8% in China, which is lower than the world average.

3. The path of green and low carbon guides the sustainable development of the world paper industry. Through the effective measures, for example, realize the reutilization of waste paper, apply the forest-paper integration and adopt the energy saving and emission reduction technology, the world paper industry achieves the raw material-pulp and paper-raw material regeneration benign circulation and steps in the development way of green and low carbon. The large-scale reutilization of waste paper is helpful for saving the forest resource; the forestry-paper integrated development helps to substantially heighten the productive force of forest land, improve local ecological environment, achieve an obvious effect of carbon sequestration and realize the coordinated development of paper, forestry and ecology; the use of large pulp and paper plant and the comprehensive improvement of technology from tree planting to pollution control make the energy consumption, material consumption and pollutant discharge reach a low level. The paper industry has a potential for low carbon, green, circular development, and it still has exuberant vital force and great development prospect in the global economic development.


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4. The world large pulp and paper equipment supply is still in the monopoly situation. Over the years, the world’s a few pulp and paper equipment suppliers has basically monopolized the supply of large pulp and paper plant by relying upon their brand advantage, research and development capability, precision manufacturing ability, capital strength and market expansion ability. This situation can hardly be changed within a short time. Presently, China has become a main market of pulp and paper plant in the world, but the large pulp and paper plant still relies heavily upon import, it results in the high cost of investment and impedes numerous small and medium-sized pulp and paper enterprises to apply the large production plant, China must further heighten the independence degree of pulp and paper plant.

(II) China paper industry

During the “Twelfth Five-Year Plan” period, China enters into a critical period for building a well-off society in an all-round way and also an important historical period for deepening reform and opening up and accelerating the transformation of economic development mode. The main highlights of economic transformation are achieving the in-depth development of industrialization, informatization, urbanization, market development, internationalization and building the resource conservation, environmentally friendly society. China paper industry needs to change the development mode, accelerate the industry structural readjustment and move towards the road of green sustainable development.

1. China paper industry needs to change the development mode. During the “Twelfth Five-Year Plan” period, China is still in the acceleration stage for industrialization and urbanization, along with the steady growth of per capita personal income and the upgrade of consumption structure, China paper industry has a certain development space; the elimination of outdated capacity also creates a condition for the application of new technology, the development of new product and the expansion of new market. Currently, China paper industry has changed from “quantity-leading type” to the new stage of “quality and benefit-leading type” with more reasonable structure, more reliable quality and more advanced technical level.


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2. The restrictions of resource, energy and environment become increasingly serious. Presently, China paper industry development mode of swift expansion faces the dual restrictions of resource and environment, implementing the sustainable development strategy and building the resource conservation, environmentally friendly paper industry is imperative under the situation. We must abide by the Outline of the Twelfth Five-Year Plan on National Economic and Social Development, strictly control the total quantum of paper industry, appropriately reduce the development speed; actively disseminate the energy conservation, water saving, consumption reduction technology and equipment, strengthen resource conservation and management; tighten the pollutant discharge reduction and governance, pay great attention to environmental protection; on the basis of the principle of “decrement, reutilization, resource”, energetically develop the circular economy.

3. Accelerate the industry structural readjustment. Along with the in-depth development of industrialization, informatization, urbanization, market development and internationalization and the accelerated transformation of economic structure, the problem of the unreasonable paper industry structure becomes increasingly serious, it is an urgent need to heighten the raw material guaranty level by optimizing the raw material structure; optimize the product structure, make products develop towards low carbon, multifunction, environmental protection and high quality, enhance the effective supply level; optimize the corporate structure, elevate the concentration degree and competitive power; optimize the technical structure, boost the independent innovation ability, enhance the overall technical equipment level; optimize industrial layout, realize rational resource allocation, push forward the coordinated development of paper industry in an all-around way.

Figure 1 China Paper Industry Demand for Papermaking Raw Material

Unit: 10,000t / 10,000m

2010 2015 (Predicted Value)

Consumption of paper and paper board

9173 11470


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Production of paper and paper board

9270 11600

Annual total consumption of pulp

8461 10457

In annual total pulp consumption:

Consumption of raw material

Pulp ouput

Proportion (%)

Consumption of raw material

Pulp ouput

Proportion (%)

1. Wood pulp 1859 22.0 2541 24.3

Specifically, domestic wood pulp

2820 708 8.4 3770 1077 10.3

Imported wood pulp 1151 13.6 1464 14.0

2. Waste paper pulp 6631 5305 62.7 8365 6692 64.0

Specifically, domestic waste paper pulp

4016 3213 38.0 5359 4287 41.0

Imported waste paper pulp

2615 2092 24.7 3006 2405 23.0

3. Non-wood pulp 3535 1297 15.3 3421 1224 11.7

Specifically, reed (bulrush , silver grass ) pulp

390 156 1.8 390 156 1.5

Bamboo pulp 776 194 2.3 960 240 2.3

Bagasse pulp 293 117 1.4 293 117 1.1

Grass pulp 1798 719 8.5 1500 600 5.7

Other pulp 278 111 1.3 278 111 1.1

III. Guiding Ideology, Basic Principles and Development Goals

(I) Guiding ideology

According to the Outline of the Twelfth Five-Year Plan on National Economic and Social Development, we shall implement the scientific development view in a deep-going way, stick to the new type industry road, and hasten to transform the development mode. With the main thread of structural readjustment and the goal of building technical innovation, resource conservation, environmentally friendly type modern paper industry, we shall give full play to the paper industry’s distinguishing features of green, low carbon and circulation, heighten the independent innovation ability, save energy and protect environment, elevate the quality and benefit of growth, promote the industrial optimization and upgrading, boost the international


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competitive power, make substantial steps during the course of the transformation from papermaking major country to modern papermaking powerful country.

(II) Basic principles

1. Base itself upon domestic market demand, control the total scale of paper industry. Mainly satisfy the domestic market demand, make it supplemented by the international market, reasonably control the total quantum, and stabilize the domestic market supply. Strictly control the repetitive construction of the projects in relation to the paper variety with excessive capacity, and guide the orderly market competition.

2. Accelerate the development of forestry-paper integration, fully utilize other resources. Actively utilize domestic and foreign resources, hasten to push forward the forestry-paper integration project construction, heighten the proportion of wood fibre, expand the domestic reutilization of waste paper, and realize the scientific reasonable utilization of non-wood fibre raw material.

3. Boost the independent innovation ability, regulate and optimize the industry structure. Combine independent research and development with the technology introduction, digestion, absorption and reinnovation, and enhance the independence degree of technology and equipment. Encourage enterprises to carry out merger and acquisition, wash out the outdated capacity, and heighten the international competitive power of backbone enterprises. Pay attention to the optimization of industrial layout, corporate organization structure and product structure, and realize the industrial upgrading.

4. Energetically develop the circular economy, tighten the ecological environmental protection. On the basis of the principles of “decrement, reutilization, resource” development, heighten the resource utilization ratio. Push forward the clean production, strictly control the discharge of major pollutants, pay close attention to the comprehensive utilization of “three wastes”, and minimize the environmental pollution.

5. Advocate the idea of saving paper, take the initiative in green, low carbon consumption. Strengthen the public propaganda and policy guide, change the idea of producing and consuming the high brightness paper blindly, encourage the production and use of the recycled paper, unbleached paper and low brightness paper, guide the whole society to


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save paper, advocate the repeated use of paper, and refrain the excessive package.

6. Stick to reform and opening up, fully utilize domestic and foreign resources. Make overall planning of domestic and foreign resources, actively implement the “go out” strategy, encourage and support domestic powerful enterprises to carry out merger and acquisition overseas, build the raw material forest base and the pulp and paper projects, realize the reasonable utilization of foreign capital, and achieve the coordinated development of domestic capital and foreign capital.

(III) Development goals

1. Achieve the steady growth of production and consumption. In 2015, it is estimated by the whole country’s total consumption of paper and paper board is 114,700,000t, with annual average growth rate of 4.6% than 2010; the total production capacity of paper and paper board is about 130,000,000t, the total output reaches 116,000,000t, with annual average growth rate of 4.6%.

2. Continually improve the raw material structure. Hasten to form the papermaking raw material structure that suites to the situation in China, primarily relies on waste paper fibre and wood fibre and is supplemented by the non-wood fibre. The proportion of wood pulp, non-wood pulp, waste paper pulp will be regulated from 22.0%, 15.3%, 62.7% in 2010 to 24.3%, 11.7%, 64.0% in 2015. The proportion of domestic waste paper pulp will be elevated from 38.0% in 2010 to 41.0% in 2015. The proportion of domestic wood pulp will be elevated from 8.4% in 2010 to 10.3% in 2015.

3. Continually optimize the product structure. Meet the effective market demand, and make regulation towards low quantity, multifunction, high quality and great variety. Push forward the development of paper and paper board products in the direction of differentiation, serialization, light weighting and environmental protection in an all-around way, gradually form the paper product structure that has complete functions and adapts to the polynary market demand at different levels.

4. Continually boost the industry concentration. By 2015, there will be more than 20 large comprehensive pulp and paper enterprise groups whose annual output exceeds 1,000,000t, several enterprise groups will


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rank among the world’s top 100 paper enterprises for gross sales. By strengthening corporate reorganization and perfecting industrial organization mode, we will gradually form the industrial organization structure with large enterprises as the head and the coordinated development of small and medium-sized enterprises.

5. Gradually heighten the equipment level. Strengthen the construction of independent innovation, establish more than 10 state-level enterprise technology centers. Boost the overall research and development level of paper industry production technology and equipment, enhance the degree of independence of pulp and paper equipment from 30% to 50%, ensure the key backbone paper enterprises’ main pulp and paper technology and equipment reaches the world advanced level, and make independently developed pulp and paper equipment approach the world advanced level.

6. Continually reduce the resource consumption. By the end of 2015, the mean water intake per ton pulp, paper and paper board will decrease to 70m3 from 85m3 in 2010, reduced by 18%; the mean comprehensive energy consumption (standard coal) per ton pulp will decrease to 0.37t from 0.45t in 2010, reduced by 18%; the mean comprehensive energy consumption (standard coal) per ton paper and paper board will decrease to 0.53t from 0.68t in 2010, reduced by 22%.

7. Obviously reduce the pollutant emission. By means of structural emission reduction, engineering emission reduction and management emission reduction, in 2015, the total discharge amount of chemical oxygen demand (COD) of major pollutants will be reduced by 10% to 12% than 2010, the total discharge amount of ammonia nitrogen will be reduced by 10% than 2010, the goal of yield increase and emission reduction can be achieved.

8. Achieve substantial results in the elimination of outdated capacity. During the “Twelfth Five-Year Plan” period, the whole country will eliminate over 10,000,000t outdated capacity.

Figure 2 Main Indexes of Paper Industry During the “Twelfth Five-Year Plan” Period

Item Index 2010 2015 (Predicted Value)

Annual Average Growth

Attribute


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Rate (%)

Total scale Total output of paper and paper board (unit: 10,000t)

9270 11600 4.6 Anticipative

Total consumption of paper and paper board (unit: 10,000t)

9173 11470 4.6 Anticipative

Fibre raw material

1. Wood pulp (%) 22.0 24.3 / Anticipative Specifically, domestic wood pulp (%)

8.4 10.3 /

Imported wood pulp (%) 13.6 14.0 / 2. Waste paper pulp (%) 62.7 64.0 / Specifically, domestic waste paper pulp (%)

38.0 41.0 /

Imported waste paper pulp (%) 24.7 23.0 / 3. Non-wood pulp (%) 15.3 11.7 /

Resource consumption

The mean comprehensive energy consumption (standard coal) per ton paper and paper board is reduced by 22%.

0.68 0.53 4.9 Restrictive

The mean comprehensive energy consumption (standard coal) per ton pulp is reduced by 18%.

0.45 0.37 3.8

The mean water intake (m3) per ton pulp, paper and paper board is reduced by 18%.

85 70 3.8

Environmental protection

Water pollutant

Total discharge amount of chemical oxygen demand (COD)

In 2015, it is reduced by 10% to 12% than 2010.

Restrictive

Total discharge amount of ammonia nitrogen

In 2015, it is reduced by 10% than 2010.

Restrictive

Elimination of outdated capacity

Total outdated capacity Over 10,000,000t. Restrictive

IV. Main tasks

(I) Improve raw material structure, increase domestic supply

1. Heighten the proportion of wood fibre. According to the actual situation of China, during the “Twelfth Five-Year Plan” period, the proportion of wood pulp will be elevated from 22.0% to 24.3%, the increased quantity of wood pulp is about 7,000,000t, specifically, the proportion of domestic wood pulp will be elevated from 8.4% to 10.3%, and the increased quantity of domestic wood pulp is about 4,000,000t.


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The required wood fibre raw material relies on domestic and foreign resources. In China, we primarily adopt the policy of “broaden the sources of income and reduce expenditure”, strictly abide by the principle of protecting natural forest resource, and gradually make forest base become the major raw material supplier for papermaking. Firstly, continue to push forward the forestry-paper integration project construction, in the premise of not occupying farmland, not affecting food safety and not destroying natural forest resource, strengthen the raw material base construction, promote the forest-paper integration, cultivate the excellent species, heighten the yield of forest land per unit area, boost the ratio of enterprise controllable forest base, advocate the new operation modes like “company + base + cooperation organization” and the “company-base-peasant household”, and boost the deliverability of the raw material base. During the “Twelfth Five-Year Plan” period, first of all, continue to complete the goal of building 5,000,000ha forest (bamboo) raw material base in accordance with the National Special Plan of the Forest-Paper Integration Project Construction in “the Tenth Five Years” and 2010; secondly, take full advantage of the intermediate cuttings, submarginal logs, processing residues and wood chips; thirdly, if possible, by regulating the present wood consumption structure, reduce the peasants’ self-used wood and fuel wood, increase the ratio of industrial wood, expand the supply source of papermaking wood material. with regard to the utilization of foreign fibre resource, on the one hand, encourage domestic enterprises to develop forest tree resource or invest in building large forest-paper integration project and papermaking raw material forest base; on the other hand, encourage enterprises to import forest products and wood chips from foreign countries, build large commercial paper pulp and wood pulp projects at the appropriate places in China.

2. Advocate the recovery and reutilization of waste paper. During the “Twelfth Five-Year Plan” period, the increased quantity of waste paper pulp will be approximately 14,000,000t. It is necessary to establish and perfect the domestic waste paper recovery system, lay down and perfect the associated laws, regulations, standards and management provisions, form the large recovery enterprises, explore the domestic waste paper recovery and reutilization development mode, standardize the waste paper conduct, elevate the quality and quantity of domestic waste paper


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recovery, boost the domestic effective deliverability of waste paper, make domestic recovery rate of waste paper rise from 43.8% to 46.7%, fully utilize the overseas waste paper resource, make China’s waste paper utilization ratio rise from 71.5% to 72.1%.

3. Realize the scientific and rational utilization of non-wood fibre. Utilize the non-wood resource scientifically and rationally, apply the new technology involved with clean production, make great efforts in energy saving, emission reduction and comprehensive utilization, improve the quality of non-wood fibre, relieve the contradiction between supply and demand of fibre resource in China and the dependence upon imported wood fibre and waste paper, and optimize the papermaking raw material structure. On the basis of the principle of adjusting measures to local conditions and realizing rational utilization, fully utilize the non-wood resources, including bamboo, reed, agricultural wastes like stalk, bagasse, etc., expedite the integration and regulation of the existing enterprises’ non-wood pulp resource, wash out the outdated production capacity, and attach great importance to large scale and high quality. During the “Twelfth Five-Year Plan” period, the total quantity of non-wood fibre will be over 12,000,000t.

(II) Heighten innovation ability, enhance technical level

1. Research and develop the low consumption, less pollution, high quality, high efficiency pulp and paper production technology.

Lay special stress on the research and development of the advanced technologies below: the clean and high efficiency pulp production technology, the technology for comprehensive utilization of papermaking fibre resource, the waste liquid comprehensive utilization technology; the energy conservation, water saving, emission reduction, clean production technology for the production process; the waste water, exhaust gas, solid waste decrement and resource utilization technology; the high performance paper base functional new material, special paper and paper board production technology; the high efficiency papermaking chemicals and application technology; the biological technology for pulp and paper production; the technology for the manufacturing of key pulp and paper production equipment and dehydrator; the full-automatic control technology and the industrial


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informatization technology and so on. Establish the pulp and paper technical innovation alliance.

2. Research and develop the advanced suitable equipment with independent intellectural property. Catch up with the international frontier technology, attach importance to the research and development of key technical equipment, combine independent innovation with introduction, digestion, absorption and reinnovation, lay special stress on the integration and innovation of the industrial technology and the complete equipment system, expedite the research, development and industrialization of the industrial key, generic technology and equipment, try to solve the technical bottleneck that refrains the development of China paper industry, and enhance the overall technology and equipment level of China paper industry and equipment manufacture industry.

3. Heighten the ability to make technical innovation. Set up the research, development, design, manufacture integration platform, heighten the ability to carry out the research, development and integration of the complete set of equipment. Strengthen the construction of the scientific and technological fundamental ability and the innovation service support system for paper industry, give full play to the national engineering (technology) research center, national key laboratory, national engineering laboratory and the technology center of large backbone pulp and paper enterprise and equipment manufacturing enterprise. Set up the information network, establish the medium high-speed fine paper machine demonstration project and the pulp and paper production equipment innovation alliance, perfect the product technology standard, try to form the technical innovation system that is based on enterprise, market oriented and combines industry with university and research institute. Support the transnational paper enterprises and equipment manufacturing enterprises to set up the technical research and development institutions in China by means of joint investment or cooperation, such as the research and development center, the training center, etc., encourage the joint development of new technology and new equipment, heighten China’s research and development level of the technology and equipment for paper industry. Encourage domestic enterprises to participate in foreign technical research and development and accept the technology transfer.


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4. Energetically push forward the integration of informatization and industrialization. Utilize information technology to enhance the traditional paper industry. Stick to the principle of driving industrialization via informatization and promoting informatization via industrialization, further help enterprises to execute and enhance the intelligence level of production equipment, the automation level of production process and the informatization of corporate management in an all-around way. Through information technology, realize the systematic integration of the enterprise’s internal information resources, such as product research, development, design and production management, quality management, financial management, marketing management, logistics and distribution, energy saving and emission reduction, project management and human resource, etc., try to reduce the operation cost of each unit as much as possible, heighten the efficiency of management. If possible, tighten the enterprise resource planning (ERP), the supply chain management (SCM), the customer resource management (CRM) and the e-commerce informatization construction, and enhance the enterprise’s informatization management level by all means.

5. Optimize the human resource structure, build the high quality personnel team. Actively give full play to the higher education institutions, scientific research institutions and enterprises in the field of the cultivation of professional talented people, assume common responsibility for personnel team construction. Firstly, center on the enhancement of independent innovation ability, foster the high-level research and development personnel, the engineering personnel with high technical skills and the top management personnel. Secondly, adapt to the basic requirement of modern paper industry, tighten the secondary education and staff training, and foster the firstline skilled operators and technicians. Thirdly, further optimize the knowledge structure of professionals, and gradually form a high quality staff team.


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Figure 3 Technology and Equipment Research, Development and Application During the “Twelfth Five-Year Plan” Period

Encourage Restrain Eliminate * Extended delignification, low energy consumption intermittent cooking or continuous cooking, oxygen delignification, element chlorine free (ECF) bleaching and totally chlorine free (TCF) bleaching technologies and equipment for chemical pulping.

* Application of chlorine

bleaching technology in new

projects.

* Spherical boiler with capacity below 40m3.

* Develop the low energy consumption, high yield pulp production technology and equipment.

* Lime process for pulping (except for rice paper).

* Develop the high efficiency waste paper deinking technology and equipment. * Develop the production technology of stalk unbleached paper pulp and products. * Develop the technology and equipment concerned with the recovery of the waste heat arising from cooking; the recovery of the waste heat arising from the evaporation station’s secondary steam; the enhancement of dryness of lime sludge, the reduction of energy consumption for lime sludge combustion; the high efficiency, energy saving heat pump; the paper machine with new type dehydrator, wide hip press, fully closed gas shield and heat recovery system, etc.

* Fine paper machine with breadth below 1.76m and velocity below 120m/min.

* Develop the technology and equipment concerned with the wet method material preparation wash water circulation system, the pulping backflush medium-concentration closed screening system, the high and medium concentration bleaching, the reclamation of paper machine’s white water, the classification and reclamation of the recovery and evaporation plant’s contaminated condensate, etc. * Develop the technology and equipment concerned with crystallization and evaporation, non-metallic element removing and black liquor viscosity reduction. Apply the combined thermal power generation for the alkali furnace, boiler and self-supply power plant to heighten the utilization ratio of energy.

* Paper board machine with breadth below 2m and velocity below 80m/min. * Develop the technology and equipment concerned with the anaerobic

treatment of high concentration wastewater and the utilization of marsh gas. * Develop and apply the sewage deep processing technology and perfect the monitoring system. * Develop and apply sludge drying, solid waste treatment and biomass resource utilization technology and equipment.

* Adopt the informatization and computer full automatic control technology for the pulp and paper production process.


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Figure 4 Independent Research and Development of Pulp and Paper Equipment During the

“Twelfth Five-Year Plan” Period 1 100,000t/a~200,000t/a non-wood pulp equipment 2 100,000t/a~150,000t/a high yield chemical-mechanic pulp key equipment 3 200,000t/a~300,000t/a waste paper pulp complete equipment 4 100,000t/a~150,000t/a waste paper deinked pulp equipment 5 Element chlorine free (ECF) or totally chlorine free (TCF) pulp bleaching device 6 Over 1000m/min high-speed toilet paper machine 7 Over 1200m/min large and medium fine paper machine 8 Key equipment, such as head box, shoe press, calendaring machine, coating machine,

high-speed rewinder, etc. 9 Water and energy saving, environmental protection equipment

(III) Optimize industrial layout, realize rational resource allocation

Regulate the industrial layout according to the general requirements of national functional area planning, comply with the principle of agelong resource utilization and ecological environmental protection, take into account the different regions’ bearing capacity of resource environment, present development intensity and future development potential, meet the requirement of environmental protection and resource conservation, rationally develop the raw material forest base, achieve the coordinated development of economy, environment and society. The new and expanded pulp and paper production projects are prohibited in the key environmental protection zone, the key ecological functional zone and the places of severe water shortage.

1. Middle and lower reaches of the Yangtze River. The middle and lower reaches of the Yangtze River, including 7 provinces (cities), i.e. Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi, Hubei and Hainan, is the biggest producing area of paper in China. Its paper and paper board output accounts for approximately 37% of the national total. It has rich water resource, but the problems of water pollution, eutrophication of lakes, etc. are very serious. During the “Twelfth Five-Year Plan” period, in order to promote the development of the local paper industry, we shall pay equal attention to pollution control and water saving, and strictly control the total emission of major pollutants. Utilize the favorable conditions for developing the fast-growing and high yield forest in Hunan, Hubei, Jiangxi and the southern area of Anhui, continue to push forward the forest-paper integrated development. The Yangtze


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River Delta region has unique advantage and developed paper industry base, so it is strongly recommended to utilize the imported wood pulp and domestic waste paper and build the production base for fine paper, packaging paper board and special paper. Owning to the intensive layout, small business scale and limited environment capacity at some places in this region, control the development strength and make regulation and integration, expedite the elimination of outdated capacity, enhance the product quality and grade, and promote the industrial upgrading and updating.

2. Yellow River, Huaihe River and Haihe River region. The Yellow River, Huaihe River and Haihe River region, including 6 provinces (cities), i.e. Beijing, Tianjin, Hebei, Shanxi, Shandong and Henan, is the second biggest producing area of paper in China. Its paper output accounts for approximately 30% of the national total. Specifically, the paper output of Shandong, Henan and Hebei accounts for 29% of the national total, the industrial layout is rather intensive, these three provinces are the main producing area of straw pulp, but owning to the shortage of water resource, the small environment capacity and the lack of high quality fibre resource, the industrial development is restricted, it is the key region for of industry structural readjustment. During the “Twelfth Five-Year Plan” period, we shall make great efforts in the regional industry structural readjustment, pay equal attention to increment control and stock optimization, gain increment by eliminating outdated capacity, tighten environmental monitoring and control, strictly control the total consumption of water used for paper industry and the total emission of major pollutants. Regulate the raw material structure and enterprise layout, expedite the elimination of outdated capacity, appropriately develop the chemical mechanic wood pulp, and heighten the utilization of commercial wood pulp and waste paper. Actively research, develop and apply the stalk clean production technology, and regulate the straw pulp structure. On the basis of the existing advantaged industrial layout, further segment the paper industry zoning and form the differentiated, distinctive new pattern. By relying on the key backbone enterprises (groups), integrate the regional resource, and drive the regional paper industry upgrading. Meanwhile, put in practice the “go out” development strategy, seize the favorable investment development opportunity in other regions and foreign countries, and


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fully utilize two kinds of resources and two markets. The new pulp and paper production enterprises, in principle, will not be established in this region.

3. Coastal area of South China. The coastal area of South China, including 4 provinces (cities), i.e. Guangdong, Guangxi, Fujian and Hainan, is the third biggest producing area of paper in China. Its paper output accounts for approximately 22% of the national total. This region has rich fibre resource and water resource as a whole. During the “Twelfth Five-Year Plan” period, the local paper industry shall pay equal attention to industry structural readjustment and pollution control and strictly control the total emission of major pollutants. Give fully play to the location advantage, by pushing forward the raw material forest base construction and utilizing the overseas wood chips, develop the forest-paper integration base. In the Pearl River Delta region, we shall control the development intensity, utilize the commercial pulp and waste paper for papermaking, further perfect the packaging paper board production base, regulate the product structure, and change the unitary product structure. Owning to the intensive industrial layout and small business scale at some places in this region, we shall expedite the integration of existing enterprises, wash out the outdated capacity, strengthen the prevention and control of pollution, and promote the industrial upgrading. In Guangxi, we shall fully utilize the local rich bagasse resource to actively develop the local pulp and paper industry.

4. Northeast China. The Northeast China, including 3 provinces, i.e. Liaoning, Jilin and Heilongjiang, is the main area for the development of fast-growing and high yield forest in the North. Its paper output accounts for approximately 2% of the national total. This region has rich land resource, certain fibre, water resource condition and paper industry base, we shall fully utilize the policies for revitalizing the old industrial bases of the Northeast, appropriately develop the pulp and paper industry at the places with favorable natural condition and water resource condition, by relying on the large backbone pulp and paper enterprises, strengthen the integration of high quality resource and the technical transformation, expedite the elimination of outdated capacity. Fully utilize the foreign fibre resource, make improvement of the young and middle-aged forest and build the fast-growing and high yield forest and reed base.


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5. Southwest China. The paper output of the Southwest China, including 5 provinces (regions), i.e. Chongqing, Sichuan, Guizhou, Yunnan and Tibet, accounts for approximately 6% of the national total. There are lots of mountains and plains. It has rich water resource and has a great potential for forest bamboo resource development, but there are difficulties in development. In Sichuan and Chongqing, we shall focus on the development of bamboo resource, make rational planning and layout, and develop the bamboo pulp business. In Guizhou and Yunnan, we can develop the wood pulp and bamboo pulp businesses with a certain scale and turn resource advantage into economic advantage.

6. Northwest China. The paper output of the Northwest China, including 6 provinces (cities), i.e. Inner Mongolia, Shaanxi, Gansu, Qinghai , Ningxia and Xinjiang, accounts for approximately 2% of the national total. It lies in the source of rivers, the ecological environment is very weak in most places and it lacks the fibre and water resource, so it is not appropriate to develop paper industry. Through the merger and reorganization of backbone enterprises, this region shall gradually eliminate the outdated capacity, make great efforts in energy saving, emission reduction and clean production.

(IV) Push forward clean production, protect ecological environment

1. Actively push forward energy saving and reduce consumption, realize the high efficiency of resource utilization. Adhere to the principle of “pay equal attention to resource development and resource conservation, put resource conservation at the first place”, in the field of production, circulation and consumption, try to save all kinds of resources, realize the recovery and reutilization of the wastes arising from each link to the maximum limit, create the most considerable economic benefit with the least resource consumption. Firstly, strictly abide by the associated laws, regulations and standards, ensure the new projects, expansion projects and technical transformation projects adopt the technologies and equipment and take the corresponding guarantee measures for resources, energy and land saving, achieve the purpose of the decrement during the production process. Secondly, enhance the whole industry’s consciousness of saving and protecting water resource strictly abide by the Law of the People’s Republic of China on Water, carry out the total quantity control and quota management in an all-around way, forcefully develop and apply the new technology, new technique and new


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equipment concerned with water saving, strengthen the rational development and utilization of water resource. Encourage the pulp and paper enterprises to adopt the series connection water system and the cyclic water system during the production process, heighten the repeated utilization ratio of water, and reduce the consumption of fresh water. By the end of the “Twelfth Five-Year Plan” period, the mean water intake per unit product will be reduced by 18% than 2010. Thirdly, make the pulp and paper enterprises actively adopt the mature suitable recovery and reutilization technology, realize the comprehensive utilization and treatment of the exhaust gas (excess pressure, excess heat), waste residue and waste solution arising from the production process, achieve the purpose of resource recovery. Fourthly, encourage the development of high yield paper pulp and the utilization of waste pulp for papermaking, save the fibre resource. By the end of the “Twelfth Five-Year Plan” period, the consumption of virgin pulp per ton paper and paper board will be reduced to 324kg from 340kg in 2010. Fifthly, if possible, implement the paper industry circular economy demonstration projects, promote the comprehensive and cyclic utilization of resource, and develop the circular economy.

2. Disseminate the clean production technology, strengthen pollution control. Actively apply the advanced, mature, applicable, environmentally friendly new technologies, new techniques and new equipment for the pulp and paper production. Extensively apply the advanced technologies concerned with the low energy consumption cooling, alkali recovery, closed screening, oxygen delignification, element chlorine free (ECF) bleaching, totally chlorine free (TCF) bleaching, the production of low brightness paper pulp and paper products, the production of unbleached pulp and paper products, etc. Focus on the prevention and control of water pollutants, give consideration to the treatment of exhaust gas and waste residue, adopt the closed cycle water system, white water recovery, middle-stage wastewater multi-level biochemical treatment, flue gas high efficiency purification, waste residue resource recovery technologies, heighten the level of comprehensive prevention and control, reduce the emission of “three wastes”. Through technical transformation, make existing enterprises to expedite the renewal of technical equipment, reduce the


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energy consumption per unit product and the pollutant discharge amount, and enhance the level of clean production.

3. Enhance the consciousness of environmental protection, tighten supervision and control. Firstly, attach importance to the propaganda and execution of relevant laws, regulations, standards and policies, such as the Environmental Protection Law, Water and Soil Conservation Law, Cleaner Production Promotion Law, Law on the Prevention and Control of Water Pollution, Paper industry Development Policy, Discharge Standard of Water Pollutants for Pulp and Paper Industry (GB3544-2008), etc., enhance the whole industry’s consciousness of environmental protection and sense of social responsibility. Secondly, set up the supervisory management system with government as the guide, enterprise as the main body and society as the supervisor and coordinator. Tighten supervision and management, strictly comply with the environmental protection performance examination system, the law enforcement system and the responsibility investigation system, actively execute the environment certification and environment labeling system, apply the clean production examination system, the environment quality publicizing system and the enterprise environmental protection information disclosure system, urge the public to take part in environmental protection and supervise enterprises to practically implement the environmental protection. Thirdly, establish the strict access conditions for paper industry, implement the environmental impact assessment system and the water and soil conservation plan of construction projects, put into practice the “three-simultaneity” system and the target responsibility system, prevent environmental pollution and ecological damage from the source.

4. Accelerate to eliminate outdated capacity, reduce production and decrease drain. Focus on the structural readjustment and pollution control of paper industry in the key water basins and regions. The existing pulp and papermaking enterprises shall further step up efforts to eliminate the outdated techniques and equipment with serious pollution, tighten technical transformation, wash out the chemical pulp production line below 51, 000t/a, the 34, 000t/a non-pulp production line and the 10, 000t/a and below waste paper pulp production line, as well as the narrow amplitude, low velocity, high consumption, low level papermaking machine. Forbid to adopt the lime process for pulping (except for rice


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paper), restrain the application of chlorine bleaching technology in new projects (it must be gradually eliminated by the existing enterprises), prohibit the import of outdated secondhand pulp and papermaking equipment from foreign countries. Perfect the “three wastes” treatment facilities, strictly control the emission of pollutants. Rectify or shut down the enterprises or production lines that still cannot reach the standard within a specified time limit according to the law. During the “Twelfth Five-Year Plan” period, continue to execute the industry withdrawal mechanism, regulate and clarify the elimination criterion, quantify the elimination index, and further strengthen elimination. Newly increase 3, 000, 000t/d sewage treatment capacity, eliminate over 10, 000, 000t paper and paper board outdated production capacity.

5. Attach importance to the emission reduction of dioxin persistent organic pollutants and ammonia nitrogen. In accordance with the National Plan of the People’s Republic of China for the Execution of Stockholm Convention on Persistent Organic Pollutants, make improvement in the emission reduction of the dioxin persistent organic pollutants from China paper industry. In terms of the requirements for the limit value of ammonia nitrogen, total nitrogen, total phosphorus as prescribed in the Discharge Standard of Water Pollutants for Pulp and Paper Industry (GB3544-2008), strengthen the investigation and research on the nitrogen and phosphorous pollutants, find out the real situation, take effective measures, focus on the upgrading of sewage treatment plant, give prominence to the denitrification and dephosphorization function, further reduce the discharge of pollutants like ammonia nitrogen.

(V) Optimize corporate structure, promote merger and reorganization

1. Foster the backbone enterprises. Based on the principle of the combination of strength and voluntary union, integrate the paper industry resource, push forward the corporate strategic reorganization, in the key development regions, view forest land resource as the core element, give priority to the key enterprises with regard to the relatively centralized forest land resource, foster some backbone enterprises and make them become stronger and bigger, support domestic enterprises to form the cross-regional, cross-industry, cross-ownership, transnational comprehensive large backbone pulp and paper enterprises and enterprise groups with international competitive power by all means, such as


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merger, acquisition, combination, reorganization and “go out”, etc., heighten the backbone enterprises’ ability of strategic management, resource operation, capital operation, product manufacture and marketing service, and enhance their core competitive power.

2. Guide small and medium-sized paper enterprises to develop in the direction of being professional, exquisite, special and new. By executing the horizontal combination and enterprise withdrawal mechanism, eliminate the outdated capacity, shut down the small enterprises that cannot meet the discharge standard, and change the situation of the large number of enterprises, small scale of business and scattered layout. Guide small and medium-sized enterprises to be specialized in the segment market, be exquisite in product quality, be distinctive in product variety and be innovative in product development.

3. Regulate the business scale and structure. Meet the requirement of appropriate economic scale, give full play to the scale effect, except for the special varieties, such as tissue paper, special paper and paper board, etc., and restrict the minimum scale of new projects and expansion projects. Try to heighten the industry concentration. By 2015, form more than twenty 1,000,000t/a and above paper and paper board production enterprises and three 1,000,000t/a and above wood pulp production enterprises, boost the proportion of the top 30 enterprises’ paper and paper board output in the total output and make it rise to 45.0% from 42.3% at the present time.

Figure 5 Minimum Scale of New Projects and Expansion Projects During the “Twelfth Five-Year Plan” Period

New Project Expansion Project Elimination

(I) Pulp 1. Chemical wood pulp

The single production line is 300,000t/a and above.

Single production line: 100,000t/a and above.

Production line: below 51,000t/a.

2. Mechano-chemical wood pulp



3. Chemical bamboo pulp



Single production line: below 34,000t/a.


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4. Non-wood fibre (stalk, reed, bagasse, etc.) The single production line is 100,000t/a and above.



5. Waste paper pulp



Single production line: 10,000t/a and below.

(II) Paper and paper board 1. Newsprint paper

New projects and expansion projects are restricted.



2. Fine paper The single production line is 100,000t/a and above The new projects and expansion projects concerning copper print paper are restricted.

Single production line: 50,000t/a and above (including copper print paper).

Fine paper production line: width 1.76m and below, velocity below 120m/min.

3. Container board, white board



Container board, white board production line: width 2m and below, velocity below 80m/min.

4. Corrugated paper and other paper board



Corrugated paper production line: width 2m and below, velocity below 80m/min.

5. Tissue paper, special paper and paper board

The minimum scale is not specified.

The minimum scale is not specified.

/

(VI) Regulate product structure, improve product quality

1. Develop the light weight, functional paper and paper board new products. Increase the variety of paper and paper board, forcefully develop the special paper and paper board, form the new growth point of paper industry. Lay special stress on the development of the light weight uncoated and coated printing paper containing mechanical pulp, including the paper with excellent color printing property, such as fine newsprint paper, super-calendered paper, pigment paper, light weight coated paper, film coated offset paper, machine finishing paper, etc.; the information, such as ink jet printing paper, thermal sensitive paper, duplicating paper, etc.; the food packaging paper and paper board, such


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as liquid packaging board, food special packaging paper, etc.; the light weight, high strength corrugated paper and paper board, such as the corrugated container board used for the protection and transportation of small and heavy commodity; the special paper and paper board with diversified functions and high technical content, which are used for household, building material, electric appliances, industrial filter, mechanical industry, agriculture, information, optics, culture and art, biochemical top technology, etc.; as well as the low brightness or unbleached environmentally friendly products that guide the low carbon consumption.

2. Accelerate the upgrading and updating of low grade products. Integrate the existing resources, carry out the effective technical transformation of the high consumption, low quality, low grade packaging paper and paper board, printing and writing paper, tissue paper, etc., eliminate the outdated capacity, enhance the product quality and grade, prevent convergence and develop the products with distinguishing features.

3. Make great efforts in the development of environmentally friendly paper products. Expedite to lay down the standard for the low brightness pulp and paper products and the unbleached pulp and paper products, comply with the Technical Requirement for Environmental Labeling Products. Make modification to the Technical Requirement for Environmental Labeling Products---Products Made from Recycled Paper, guide the green production and green consumption, encourage paper enterprises to continually heighten technical level, expand the utilization of waste paper, and actively develop the environmentally friendly paper products.

(VII) Set up saving mode, advocate rational consumption

In terms of the requirements of building conservation-oriented society, actively advocate the rational consumption of paper and paper board products, form the paper consumption view of “saving paper, moderate consumption, cyclic utilization, green and low carbon”, change the present paper consumption tendency of unilaterally pursuing the high brightness, save resource and reduce pollution. Revise the paper product standard as soon as possible, upgrade some recommended standards into compulsory standards. Encourage the development of


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the new products that meet the requirements of energy saving, emission reduction and clean production, satisfy the polynary consumption demand, encourage to substitute the green, low carbon paper products for some fossil raw materials, guide green consumption. With regard to the government procurement, according to the actual purpose of use, in the premise of satisfying the basic demand, give priority to the paper products that are produced with a certain proportion of waste paper, actively push forward the digital office, and reduce the consumption of office paper products. The press and publication industry shall, according to the actual demand, intensify efforts to neaten the publications and advertisements that are too excessive and try to save paper. The packaging industry shall actively advocate the cost mode of economy type, encourage the moderate packaging and take effective measures to refrain excessive packaging. V. Key Projects


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(I) Forestry-paper integration project No.

Project Name

Main Content & Key Technology

Goal Criterion

1 Chemical wood pulp

Apply the extended delignification, element chlorine free (ECF) bleaching, medium and high concentration technology, alkali recovery system, self-supply power plant and full automatic control system for the production of chemical wood pulp.

Establish the reasonable raw material supply plan; the water intake per ton pulp is 30m3, the self-sufficiency rate of energy is over 90%, the discharge amount of absorbable organic halogens (AOX) in wastewater per ton pulp is less than 0.3kg, promote the combined heat and power generation and heighten the self-sufficiency rate of energy, the increased production capacity of chemical wood pulp is 4.30 million tons.

*Newly built single production line of bleached chemical wood pulp: 300,000t/a and above. *Existing enterprise’s rebuilt chemical pulp single production line: 100,000t/a and above.

2 Chemical bamboo

pulp

Apply the extended delignification, element chlorine free (ECF) bleaching medium and high concentration technology, alkali recovery system, self-supply power plant and full automatic control system for the production of chemical bamboo pulp. Eliminate the traditional cooking, element chlorine free (ECF) bleaching and low concentration production technique. Rebuild the bamboo pulp production line.

Establish the reasonable raw material supply plan; the discharge amount of chemical oxygen demand (COD) per ton wastewater is reduced by 40%, the discharge amount of absorbable organic halogens (AOX) is reduced by 80%, the amount of water conservation per ton pulp is 40t, promote the combined heat and power generation and heighten the self-sufficiency rate of energy, the increased production capacity of chemical bamboo pulp is 700,000t.

*Single production line 100,000t/a and above.

3 Mechano-chemical

wood pulp

Apply the high yield pulp production technology (high concentration, compression and tear, immersion, high efficiency large disc mill, hydrogen peroxide bleaching, automatic control etc.) for

Establish the reasonable raw material supply plan; the yield rate of paper pulp is over 85%, the water intake per ton pulp is 18m3, reduce water intake by over 40%, the increased production capacity of mechano-

*Single production line: 100,000t/a and above.


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the production of mechano-chemical wood pulp.

chemical wood pulp is 2 million tons.

4 Key raw material forest

(bamboo) base for paper

industry

Apply the high yield pulp forest new variety fostering technology, the oriented fostering technology and the pest control technology.

Build 4,200,000ha fast-growing and high yield forest base with standard, large-scale, intensive operation.

*Supporting forest (bamboo) base for forest-paper integration projects.

(II) Clean production and resource utilization engineering

No. Project Name Main Content & Key Technology

Goal Criterion

1 Chemical pulp production technology

transformation

Apply the clean production technologies, such as low energy consumption cooking, oxygen delignification, element chlorine free (ECF) bleaching, etc. Rebuild the traditional production line.

Reduce the discharge of absorbable organic halogens (AOX) by 80%, the amount of water conservation per ton pulp is 30m3, complete the rebuilding of 2,000,000t/a capacity.

*Wood pulp single production line: over 100,000t/a. *Bamboo pulp single production line: 51,000t/a and above. *Non-wood pulp production line: 34,000t/a and above.

2 Comprehensive utilization of

stalk unbleached pulp and products

Apply the advanced technologies, such as low energy consumption cooking, oxygen delignification, waste liquid resource utilization, etc.

The yield rate of pulp is increased by 5%, the amount of water conservation per ton pulp is 30m3, the amount of pollutants generated is reduced by 20%, the rebuilt and newly increased capacity is 2,000,000t.

*New single production line: 100,000t/a and above. *Rebuilt single production line: 34,000t/a and above.


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3 Alkali recovery

technology transformation

Adopt the high concentration black liquor evaporation and combustion technology, the medium pressure or sub-high pressure alkali recovery furnace and the turbo generator unit, the new type green liquor, white liquor filtration and lime sludge washing equipment. Rebuild the existing alkali recovery system.

For the 50,000t/a alkali method chemical pulp projects, the recovery of alkali is 30t/d, the steam generation is 570t/d, use the alkali furnace and apply the combined thermal power generation system for the power supply 300 kwh/ton pulp. Reduce the pollution load by over 70%.

*50,000t/a and above chemical pulp system.

4 Alkali recovery and lime sludge

resource utilization technology

transformation

Adopt the new type green liquor, white liquor filtration and lime sludge washing equipment, rebuild the existing causticizing system, realize the comprehensive resource utilization of the solid waste lime sludge.

For the 50,000t/a alkali method chemical pulp projects, the generation of overdry calcium carbonate is 35t/d. Eliminate the solid waste pollution load.

*50,000t/a and above chemical pulp system.

5 Anaerobic treatment and

marsh gas resource

utilization

Apply the anaerobic treatment technology for the high concentration wastewater arising from papermaking. Adopt the technology for utilizing marsh gas for electric power generation. Realize the comprehensive utilization of other resources.

The generation of marsh gas is about 1m3 per 1kg biochemical oxygen demand (BOD). 1m3 marsh gas can be used for about 1.8kwh power generation. Reduce the pollution load by over 70%.

*Single waste paper pulp production line: 100,000t/a and above. *Chemical-mechanical pulp single production line: 50,000t/a and above.

*Semi-chemical pulp single production line: 50,000t/a and above.

6 Combined heat and power generation

Provide the self-supply power plant in terms of the steam required for production, generate power based on the demand for heat, apply the combined thermal power generation, and heighten the energy

For 6MW and above combined thermal power generation projects, the standard coal equivalent of unit project is about 15,000t.

*1500KW and above.


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utilization rate.

7 Sludge drying and solid waste comprehensive

utilization

Adopt the sludge dehydration and drying technology, sludge storage and transportation technology, sludge incineration, etc. Use the special multi-fuel incinerator, use coal as the auxiliary fuel. Ensure the weight ratio of mixed standard coal is less than 30%. Adopt the biomass gas generation technology.

When the quantity of solid waste is lower than 300t/d, apply the method of mixed burning after anhydration, normally, the weight ratio of mixed coal is greater than 50%; when the quantity of solid waste is greater than 300t/d, use the special solid waste incinerator after adequate anhydration, usually, the weight ratio of mixed coal is less than 30%; when the incinerator’s evaporation capacity is not less than 20t/h, adopt the system of power generation by waste heat.

8 Sewage treatment plant and

online monitoring

system reconstructio

n

Improve and perfect the sludge treatment technique and process, attach importance to the monitoring system.

Ensure the sewage treatment meets the standard GB3544-2008, and realize the comprehensive utilization of a part of the mid-stage wastewater.

*Sewage treatment capacity: 1.50,000m3/d and above.

(III) Upgrading and updating of products and independent innovation of equipment

No. Project Name Main Content & Key Technology

Goal Criterion

1 Light weight newsprinting

paper technology

transformation

Eliminate the outdated capacity.

Complete the technology transformation for 400,000t light weight newsprint paper.

* It must be subject to Figure 5: Minimum Scale of New Projects and Expansion Projects


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2 Light weight fine paper containing mechanical

pulp

Adopt the size press or fil m coating, inner or outer-machine press polish technology.

The increased and rebuilt capacity of uncoated writing and printing paper is 4.30 million tons. The increased and rebuilt capacity of coated paper is 1.60 million tons.

During the “Twelfth Five-Year Plan” Period.

3 High grade tissue paper

Use the wide amplitude and high speed paper machine, hot gas hood, etc.

The increased and rebuilt capacity of the high grade tissue paper is 2.10 million tons.

4 Light weight, high strength

packaging board

Use the extended nip press, film sizing press, calendaring machine, etc.

The increased and rebuilt capacity is 800,000t packaging paper, 4,000,000t white board, 5,000,000t container board and 4,600,000t corrugated paper.

5 Functional special paper

and paper board

Adopt the technology and equipment for the production of special paper and paper board.

The increased and rebuilt capacity is 900,000t special paper and paper board.

6 Equipment with

independent intellectual property

Set up the development, design, manufacture integration platform, and use the advanced component manufacture system and the independently developed complete pulp and paper production machinery.

Build 100,000t/a and above mechano-chemical wood pulp, non-wood pulp and waste paper deinking complete production line; use the complete medium and high speed paper machine.

*The enterprise’s registered capital is over RMB 50 million yuan. Achievements are made in the design and manufacture of pulp and paper production equipment.


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Finpro

Porkkalankatu 1, P.O. Box 358, Helsinki, FI-00181 Finland Phone +358 204 6951, fax +358 204 695 200. BID FI02023177

[email protected], www.finpro.fi

VI. Policies and Measures (I) Strengthen policy support, promote forestry-paper integrated development

On the basis of the National Special Plan of the Forest-Paper Integration Project Construction in “the Tenth Five Years” and 2010, Paper industry Development Policy and the Opinions of the State Council on Pushing Forward the Reform of Collective Forest Right System in An All-around Way, lay down the supporting policies and implementing rules for effectively promoting the construction of raw material forest base, encourage all social forces to build the raw material forest base, and continue to push forward the sustainable development of forest-paper integration. To establish the wood strategic reserve base, it is necessary to make overall planning and take into account the raw material forest base involved with the forestry-paper integration projects. Pursuant to the General Outline of Technical Policy on Comprehensive Utilization of Resources in China and other associated documents, the pulp and paper enterprises who use three wood residues, small firewood material, stalk and bagasse as the raw materials can enjoy tax preference according to relevant tax laws and regulations.

(II) Encourage independent research and development, develop domestic equipment

Support the technology development and industrialization of large, advanced complete paper production equipment as well as the key components and systems; list the domestic enterprises’ independent mature key paper and pulp production equipment on the Catalogue for Key Technical Equipment and Products Supported by the State, if it is necessary to import the key components, systems, raw materials, etc. for the equipment listed on the catalogue, make it exempt from the import duty and the value-add tax, abolish the corresponding preferential taxation policy on the import of whole machine; list the technologies concerned with the research, development and design of complete paper production equipment and the design and manufacture of key components and systems on the Catalogue for Technologies and Products Encouraged to Import; encourage paper enterprises and equipment manufacturing enterprises to tackle key problems jointly, develop and apply the first set of key technical equipment with independent innovation.

(III) Perfect incentive policy, promote energy saving and emission reduction

Establish and execute the optimum feasible technical guiding rules for the prevention and control of industrial pollution, effectively guide enterprises to do well in clean production, energy saving and emission reduction. Perfect the


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incentive policy, lay down the encourage or incentive policy for the enterprises with excellent performance in environmental protection, give priority to these enterprises in the allocation of emission allowance, the examination and approval of construction projects, etc. Establish the implementing rules for eliminating the outdated capacity as soon as possible, set up the scientific rational withdrawal and compensation mechanism in relation to the enterprise’s shutdown, stop of production, merger and acquisition and change of products. Lay down the incentive policy on the paper enterprises that can generate the biomass energy by using the wastes like black liquor, high concentration wastewater, sludge, waste residue, etc.

(IV) Promote waste paper recycling, guide green consumption

Perfect the preferential policies and relevant standards for the reutilization of waste paper, perfect the waste paper recovery and reutilization system. Set up the renewable product labeling system, lay down the incentive policy. Enhance the whole society’s consciousness of saving paper, advocate the rational, green, low carbon consumption. The governments at all levels shall give priority to the paper products that entirely or partially use waste paper as the raw material, formulate relevant policies and encourage consumers to purchase the products that are produced by using waste paper.

(V) Establish and revise relevant standards, perfect standard system

Attach importance to the establishment and revision of the paper industry product standard, the testing method and standard and the technical standards, expedite to establish the standards for new products and new technologies, strengthen the standardization of energy conservation, water saving, material conservation, etc., modify and perfect the associated current standards in due time, for example, the standard for brightness of paper products, the standard for the packaging paper and board directly contacting food, etc. Heighten the international competitive power and effectiveness of the paper industry standard, make the standardization of China paper industry advance to a new level.

(VI) Perfect foreign capital policy, guide investment direction

Guide the direction of foreign investment, optimize the industrial and regional structure of foreign investment; actively develop the above-scale forest-paper integration projects that primarily utilize the overseas resource, encourage foreign paper enterprises to combine strengths, make concerted effort in research and development, enjoy achievements with domestic enterprises and scientific research


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institutions, expand the technology overflow effect; encourage Chinese and foreign enterprises to strengthen mutual cooperation, support the eligible foreign enterprises, domestic enterprises and scientific research institutions to apply for the national scientific and technological development projects, the innovation ability construction projects, etc. According to relevant laws, regulations and policies, tighten the management of foreign capital merger and acquisition, and maintain the fair competition order.

(VII) Render great support, promote overseas investment

Actively support the eligible domestic enterprises to make investment in the overseas papermaking raw material, paper production, pulp and paper equipment by means of merger and acquisition, equity participation, joint investment and cooperation, etc. Utilize the overseas wood and bamboo resource effectively, enhance the technical level of relevant industries, and try to expand the international market. Encourage domestic banks to render credit support for the overseas investment in the field of paper industry by means of export credit, project financing, annexation loan, etc. Provide the information service concerning overseas investment, render conveniences in customs, commercial inspection, entry and exit.

(VIII) Increase investment, expand financing channel

While expanding the indirect financing for paper industry, gradually heighten the proportion of direct financing. Further boost the scale of commercial bank loan, encourage and guide financial institutions to render great support to the projects and enterprises with strong economic strength and great market potential. Give full play and utilize the financing function of the domestic and overseas capital market, support the eligible paper enterprises to issue shares and be listed in China and foreign countries; encourage the listed paper enterprises to raise funds by increasing issues in stocks, selling shares, issuing convertible bonds, etc.; support the eligible paper enterprises to issue the enterprise (corporate) bonds, midterm notes and short-term financing bills; expand the diversified modes of financing, such as the industry (equity) investment fund and the venture investment fund and so on.

(IX)Establish perfect system, cope with trade friction

Perfect the industrial safety database, actively guide and drive the pulp and paper enterprises to set up and perfect the forest certification system during the course of the construction of raw material forest base; establish and perfect the government,


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industry, enterprise “three-in-one” trade friction response mechanism and early warning system, heighten the ability to coordinate and solve the international trade disputes, dispose of the international trade disputes properly, maintain the fair market competition and stick up for the paper enterprise’s legal rights and interests.

(X) Give full play to mediating role, push forward the implementation of the plan

The paper industry associations and groups at all levels and the related intermediary organizations and institutions shall energetically push forward the practical implementation of the Twelfth Five-Year Development Plan of Paper industry and the policies and measures concerned with the development of paper industry, timely grasp and analyze the Plan and discover the new situations and new problems, dynamically reflect the enterprise and industry’s requirements, put forward the feasible opinions and suggestions and find out the solutions.

VII. Implementation of the Twelfth Five-Year Plan

Relevant departments under the State Council shall, in terms of the tasks, policies and measures indicated in the Twelfth Five-Year Plan, strengthen communication, act in close coordination and cooperation, guarantee the smooth implementation of the Plan, carry out the midterm assessment and post-assessment work in due time, and timely put forward the assessment opinions.

The key pulp and paper production regions shall, based on the tasks, policies and measures indicated in the Plan, in combination with the local actual situation, establish the regional paper industry development plan and carry into execution, if any new situations or new problems are discovered, timely report to the National Development and Reform Commission, the Ministry of Industry and Information Technology and the State Forestry Administration, etc.


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China Pulp and Paper Modernization Project summary

Main outcome of China Pulp and Paper modernization project is to maintain pulp and

paper technology production and exports from Finland. Finland is the main equipment

supplier of the new investments in China’s pulp and paper sector. In China Pulp and

Paper Modernization Project Finpro will gather Finnish pulp and paper technology

providers to same export cluster. This will help reaching potential Chinese customers

more efficiently with a larger product segment. Chinese officials claim, that in the next

five years they would like to see the majority of the technology to be of Finnish origin.

However, China has been determined in developing own technology manufacturing

also in pulp and paper technology. Therefore the Finnish technology providers are

expected to participate in at least half of the forest sector modernisation projects

during the next five years. The Finnish technology providers should participate in at

least half of the forest sector modernisation projects during the next five years . This

would mean at minimum level 5 - 15 Mrd EUR technology export from Finland. Also

10 –20 new pulp and paper technology companies should establish processing

facilities in China. In return we are expecting Chinese investments to P&P technology

companies in Finland. The China 5 year modernisation process offers the Finnish pulp

and paper technology cluster an opportunity to regain and preserve the leading position

as the BAT provider for pulp and paper industry as well as maintain extensive R&D.

Jussi Havia, Consultant, EEF Finpro

[email protected] +358 40 343 3396

Hannu Kivelä, Leading Consultant, EEF Finpro

[email protected] +358 40 343 3354

Business

Twelfth Five-Year Development Plan of Paper Industry