'Plastic Limit Order' will boost packaging paper demand in China

'Plastic Limit Order' will boost packaging paper demand in China

China | 2 March 2021 | The Pulp and Paper Times:

One of the leading paper manufacturers in China, Lee & Man Paper Manufacturing Limited is actively looking to diversify its pulp and paper business in Southeast Asian countires. Releasing the company’s financial results for the year 2020, Dr. Raymond Lee, Chairman of Lee & Man Paper, said. “Packaging paper remains the core business of the Group. With the increasing prevalence of online consumption in Mainland China and overseas, there is a growing demand for quality packaging paper in the market. This, coupled with the implementation of plastic limit order in Mainland China, is favorable to the Group’s packaging paper business. To cope with the full import ban on waste paper in Mainland China, effective from 2021, the Group will actively develop the recycled pulp business in Southeast Asia to replace imported waste paper and strengthen the allocation of raw materials in order to ensure its production cost advantage,” 

Mr. Edmond Lee, Chief Executive Officer of Lee & Man Paper, said in a statement that “Looking ahead, the Group will proactively optimize the industrial chain in order to diversify its paper and pulp businesses. In the meantime, the Group will support the ‘Belt & Road’ initiatives leveraging the foundation of its existing business, targeting the Southeast Asia market for international development, and introduce new production capacities in countries such as Vietnam, Malaysia and Indonesia. In the future, we will continue to seek business opportunities in countries and cities along the Belt & Road and are confident in the long-term development of the region’s paper industry.”

“The signing of the first phase of the US-China trade agreement at the beginning of last year has reduced market uncertainties. However, the COVID-19 pandemic and the ongoing tensions in the US-China relationship have affected consumer confidence. Meanwhile, with the increase in the cost of paper production, the operation of the industry is still facing challenges. The Group has proactively responded to these changes in the market. We have been committed to developing a vertical business model through active consolidation of our upstream resources, covering pulp manufacturing and recycling of waste paper so as to achieve an integrated industrial chain and ensure the supply of raw materials. At the same time, the Group continues to expand its scale, control costs, and strengthen production capacity leveraging its existing business, bringing more opportunities for business development and performance growth.” Dr Raymond Lee said.

He further said that the Group’s current focus lies on the development of various types of linerboard, corrugating medium, coated duplex board and tissue paper, with an intensive effort being devoted to segmental markets to cater to the needs of different customers. For the tissue paper business, the Group considers it a major focus and has therefore established an integrated product chain. Lee & Man Paper has endeavored to improve the quality of consumer tissue and boost its scale of production. The Group produces natural bamboo unbleached tissue in order to satisfy people’s needs for health and environmental protection as well as consumption requirements. The tissue business has maintained steady growth as a whole and our existing capacity reached up to 900,000 tons annually. The Group is focusing on the requirements of consumers and continues to adopt effective strategies for developing the tissue business.

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