Light Industry & Textile Tourism


1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
Pulp is processed by taking some plants as its material, and it is the basic material of papermaking. In general, the plants for making pulp include the follow 4 categories: stem fiber, phloem fiber, hair fiber and wood fiber. Among the materials, the wood fiber is the most important material. At present, the wood resource in China cannot meet the demand of fast developing pulp papermaking industry. For making up the insufficiency of material, a large amount of pulp need to be imported from foreign countries, and the main import countries are U.S.A, Canada and Brazil. The product of this project is native raw wood pulp, which is the pulp manufactured from extracting fiber from steaming wood chips, has simple and elegant smell and the pure fragrance of wood. The paper manufactured generally shows creamy white, is healthy and natural, has good quality and is hygienic.  
1.1.2 Market Prospect
The pulp industry of China is always keeping a fast development speed, and its average annul increase of output has reached around 10%. However, now most of the pulp still relies on import, because the pulp demand of China is around 5.5 million tons. We are short of wood supply and the gap is 55 million cubic meters. According to the anticipation of experts, the paper market demand of China will increase from 1.68 million-1.96 million tons in 2010 to 200 million tons in 2030. Therefore, its market demand is huge and its market prospect is vast.
Household paper is the paper with the fastest development speed in recent two years, and the newly formed output in 2015 is around 800 thousand tons. Looking from present situation, most of the household paper manufacturers are still profitable in 2015, but its output experiences fast expansion, the quantity of negative market expectation increases, its product competition intensifies and its profitability decreases. It is anticipated that the total output of domestic household paper of China is around 8.8 million tons, which has around 6% of year-on-year increase, the import is around 30 thousand tons, which has around 25% of year-on-year decrease, the export is around 700 thousand tons, which has around 7% of year-on-year decrease, and the consumption is around 8.13 million tons, which has around 7% of year-on-year increase.
As the economy growth rate of China is still around 7% in this year and the GDP of primary industry and secondary industry still take up more than 50%. Adding the condition that the emerging express delivery business is developing fast, the market demand on pull case board and corrugating medium has certain increase.
According to the statistical data from the National Bureau of Statistics, till the end of Sep. 2015, the quantity of pulp papermaking and paper product enterprises is 6,717, including 48 pulp manufacturers, 2,766 papermaking manufacturers and 3,903 paper product manufacturers. 
Accumulated output from Jan. to Sep. in 2015: Paper and paperboard: 87.8221 million tons which has 1.6489 million tons and 1.84% of year-on-year decrease. Pulp: 12.2914 million tons which has 154.4 thousand tons and 1.27% of year-on-year increase. Paper product: 54.2393 million tons which has 6.5884 million tons and 13.83% of year-on-year increase. The accumulated output of paper case is 32.0584 million tons which has 4.7914 million tons and 17.57% of year-on-year increase.
From Jan. to Sep. in 2015, the accumulated import of paper and paperboard is 2.1746 million tons which has 1.53% of year-on-year increase, and the foreign exchange usage is 2.542 billion US Dollars which has 6.51% of year-on-year decrease.
From Jan. to Sep. in 2015, the accumulated export of paper and paperboard is 4.8564 million tons which has 4.78% of year-on-year decrease, and the export amount is 6.674 billion US Dollars which has 1.14% of year-on-year increase.
From Jan. to Sep. in 2015, the accumulated imported pulp is 14.7552 million tons which has 10.79% of year-on-year increase, and the foreign exchange usage is 9.510 billion US Dollars which has 5.13% of year-on-year increase. The accumulated imported wasted paper is 22.1716 million tons which has 6.25% of year-on-year increase, and the foreign exchange usage is 4.009 billion US Dollars which has 2.41% of year-on-year decrease.
From Jan. to Sep. in 2015, the accumulated exported commercial pulp is 76,800 tons which has 2.13% of year-on-year increase, and the exported amount is 84.5331 million US Dollars which has 6.88% of year-on-year decrease. The weight of the exported wasted papers is 535.80 tons which has 9.84% of year-on-year decrease, and the amount of export is 237.7 thousand US Dollars which has 0.95% of year-on-year increase. According to the express data provided by the National Bureau of Statistics, the operation and operation of pulp papermaking and paper product industry is basically stable from Jan. to Sep. in 2015.
2016 is the start year of “13th Five-year Plan”, as the economic development slows, the demand growth will also decrease, and adding the obvious capacity problem of structural and phased surplus, the situation of papermaking industry cannot be effectively improved within a short period. Therefore, we consider that the production and consumption of domestic pulp manufacturing and paper product industry will continue its status in 2015, and the overall industry will keep stable. It is anticipated that the situation of falling commodity price and shrinkage of external financial environment will improved. The market could show a low-high status and this overall performance is better than last year.
1.1.3 Technical Analysis
The pulp manufacturing technology of the project adopts batch-type vertical digester steaming, mature drum-type vacuum pulp washing unit for pulp washing and advanced closed screening process and environment friendly bleaching process. Its alkali recovery workshop adopts the domestic mature and reliable steaming, burning and causticizing process to treat the pulping black liquor and reduce the pollution caused by pulping. Its pulp folding workshop selects national equipment adopting the technologies of open headbox, long net, vacuum roll complex pressing and one pressing, dryer drying, etc. Advanced equipments at home and abroad are introduced in the key equipments, such as vacuum roll, complex pressing and electric control part, which have reached domestic advanced level. 
1.1.4 A dvantageous Conditions of Project Construction
(1) Resource Advantage
Zhenlai County is located in the middle altitude inland area and owns typical temperate continental monsoon climate. It has suitable climate and abundant rainfall, which are in favor of constructing integrative wood-pulp-paper. Zhenlai County has abundant forest resource and its total forest area is 520 thousand mu. Till 2007, the county has completed 200 thousand mu of grain for green Project, and has planted 1 million trees through county-wide compulsory planting. Along with the adjustment of agricultural structure and the implementation of grain for green project, and the abundant material supply for neighboring area, a sustainable and effective supply of papermaking material can be guaranteed, and the greening area of the county can also be enduringly guaranteed, so the purpose of maintaining forest through papermaking and promoting papermaking through forest and the virtuous cycle of paper making, forestry and ecological environment can be achieved.
(2) R egional Advantage
Zhenlai County is located in the junction of three resource provinces (regions) of Jilin Province, Heilongjiang Province and Inner Mongolia and the center of Northeast Asia, it is the only way of entering Shanhaiguan from the east of Inner Mongolia and the west of Heilongjiang Province and the transfer station of China-Mongolia transportation passage, which is often honored as “the county with a crow reaching three provinces”. The county faces “Hadaqi (Harbin, Daqing, Qiqihar) Industrial Corridor” in the east and connects “Changjitu (Changchun, Jilin, Tumen River) Development and Opening Leading District” in the south.
(3) Transportation Advantage
Within the radius of 200 km, there are 5 prefecture-level cities with developed economy. Pingqi double track railway, Changbai railway and Nendan, Hunwu expressways all go through the county. The western airport of Jilin Province (Baicheng Airport) which is under construction is only 30 km away from Zhenlai County in straight line distance.
1.2 Content and Scale of Project Construction
1.2.1 P roduct Plan and Scale
The project is to be implemented in two phases. 500 thousand tons pulp and 50 thousand tons household paper are to achieved in phase I, 500 thousand tons pulp paper is to be achieved in phase II.
1.2.2 Content of Construction
(1) 333.3 thousand hm2 fast-growing trees are to be planted.
(2) Production line with annual output of 1 million tons pulp is to be introduced, including material preparation workshop, pulp making workshop, pulp folding workshop and common parts of plumbing work, air pressure oxygen station, total buck stops and power supply & distribution work, instrument work, warehouse, office building, central lab, general drawing work, etc.
1.3 T otal Investment of the Project and Capital Raising
1.3.1 Total Investment of Project
Table 1:   Summary List of Total Investment of the Project    Unit: 10,000 Yuan
Expense Name
Investment Amount
Proportion in Total Investment %
Construction Investment
Interest Incurred during Construction
Working Capital
Total Investment of the Project 1+2+3
1.3.2 Capital Raising
Financing plan is to be confirmed according to the details of cooperative partner.
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
Table 2       List of Main Financial Benefit Predictive Index
Sales Revenue
10,000 Yuan /a
Normal Year
Total Profit
10,000 Yuan /a
Normal Year
Financial Internal Rate of Return of all Investments
After-income tax
Financial Net Present Value Ic=10%
10,000 Yuan
After-income tax
Investment Payoff Period of all Investments (After-tax)
Including 2 years of construction period
Sales Revenue
After-income tax
Remark: The “10,000 Yuan” in the table means RMB.
1.4.2 Social Evaluation
The formation of“One Belt and One Road”economic circle and many free trade zones promoted by Chinese government will make our papermaking industry face both the domestic market and international market, and it is also required that the papermaking industry shall adapt to the “double sword” effect on it caused by this situation change. We shall make good use of relevant policy changes (including customs duty rate adjustment, overseas RMB settlement, etc.) to expand the paper product market of China.
Forestry-paper integration can reduce straw pulp ratio, energy and water consumption and environment pollution. Besides directly solving the employment of local job-waiting and unemployed people, this project will also drive its auxiliary industries and its upstream and downstream industries to receive more unemployed and job-waiting people.
1.5 Cooperative Ways of Project
Sole proprietorship
1.6 What to be Invested by Foreign Party
Sole proprietorship
1.7 Construction Site of the Project
Zhenlai County Economic Development Zone
1.8 The On-going Condition of Project
Project proposal has been completed.
2. Brief Introduction to the Partner
2.1 Basic Conditions
Name: Zhenlai County Economic Development Zone of Jilin Province
Address: Yong’andong Road, Zhenlai County
Legal Representative: Ding Liguo
2.2 Overview
Zhenlai County Economic Development Zone in Jilin Province was established in Sep. 2005 with the approval of provincial government. It has successfully been promoted into provincial economic development zone in Jun. 2012. Its total planning area is 18.8 square kilometers, including 6.7 square kilometers of core zone. Since 2006, it has raised more than 300 million Yuan to strengthen the infrastructure construction of its core zone. At present, its core zone has achieved “Seven Connections and One Leveling”. In recent years, the party committee and government of the county vigorously strengthen the construction of the development zone with all of the power and wisdom of the county, and the development zone has been constructed into an accumulation area of competitive industries, demonstration area of investment invitation, leading area of scientific development and new urban area which is livable and graceful.
2.3 Contact Method:
Contact Unit: Zhenlai County Investment Invitation Office
Contact Person: Li Yanzhong 
Contact Telephone: 0436—7293698
Fax: 0436—7293698
Email Address:
Contact Method of Project City (Prefecture):
Contact Unit: Baicheng City Economic and Technical Cooperation Bureau
Contact Person: Liu Lin
Contact Telephone: 0436-5081011   13943687990
Fax: 0436-5081011
Email Address:
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