Brief introduction of Mr. Aki Niemi, Area President, China, Pulp, Paper and Power, Metso:
Graduate from Helsinki University of Technology, Master Degree of pulping and papermaking industry. Worked in the paper industry for 18 years, Mr. Aki Niemi has a long-term contact with the customers. In February 2013, was appointed as Area President, China, Pulp, Paper and Power, to be responsible for the whole business of Metso Pulp, Paper and Power in China.
Q: You as a new Area President, how do you think of China's paper industry present situation and prospects of the development of papermaking industry in the future?
A: 我对中国的制浆造纸产业一直都非常的关注，我从业的18年以来，一直和中国客户在打交道，密切关注着中国制浆造纸工业的发展。在本世纪初的10年里，中国造纸工业经历了一个快速的发展过程， 基本保持在双位数的增长。而过去的两年里， 中国造纸工业逐步进入到一个平缓增长期，增长速度放慢。
A: I am always keeping eyes on China pulp and paper industry, in my 18 years working time, I have been working with Chinese customers since 1999, and closely be attention to the development of China pulp and paper industry. In the first 10 years of the new century, China pulp and paper industry experienced a fast development, the growth rate basically was even double digits, but, during past two years, China pulp and paper industry growing speed is slowing down, and gradually going into a mild growing time.
具体来看，经过2008年的金融危机之后，中国的制浆造纸产业的增长速度起伏较大，一方面，中国政府的经济刺激政策有一定的促进作用，另外一方面，中国出口业务增长减缓导致造纸产业投资速度放慢。 在这个过程中，美卓在2009年、2010年收获了市场中的大量订单。从2011年开始，整个制浆造纸产业出现了很多的不确定性，特别是去年中国造纸产业的产量增长仅仅为3.2% 左右， 纸和纸板产量净增加为350万吨， 其中由美卓供货的开机产能为260万吨。
Let us have a close look at the situation, after world financial crisis in 2008, the growth rate of China pulp and paper industry varied quite a lot. Because, on one side, it was boosted by Chinese government’s economical stimulus package and, on another side, it was dragged down by Chinese mild increase of export business. So, in 2009 and 2010, Metso got a large number of orders from market. But, since 2011, China pulp and paper industry had experienced a lot of uncertainties, in 2012, China paper and board production increase is only about 3.2%, i.e. the total net production increase is about 3.5 million tons, among that, 2.6 million tons new capacity added to the market are from Metso’s delivery.
For China Pulp and Paper industry, the number of enterprises above designated size is very large, over 4000 pcs. Industry concentration is quite low. There are the most advanced technology in China market, also there are lots of out dated production, we noticed Chinese government is increasing its efforts to shut down those backward and heavy polluting small pulp and paper mills and production lines. So, in the coming years, we estimate that elimination of backward production capacity and A&M, integration will further continue.
Household paper market in China is experiencing a rapid development over the past 20 years, 40% of the global new production capacity are in China. Recently, the market investment is still very active, it is predicted that China will be the world's largest household paper market in 2020. But the level of tissue making equipment is uneven in, good and bad coexist. Another one is the investment will go for high end product, which is asked to invest the advanced technology production line. It is worth mentioning that Metso had supplied more than 24 tissue production lines to customers in China, and work together with customers created several world-class operating records.
For pulp, there are a lot of uncertainties, it is difficult to estimate. First of all, in China, there is lack of pulp raw material. It’s not like South America where there have plenty of raw materials. In the future, there might be new pulping projects in China. As for mechanical pulp, there might be new investments in the market, but, overall, China's pulp market is limited by the resources.
If it comes to the future, there must be challenges in the future. Not only challenges in China pulp and paper industry, but also in any of the industries. I think the trend of the development of the pulp and paper industry is necessarily to grow up.
Many media reported the development of China's future urbanization, it means there may be about 300 to 400 million people will move into the cities, these people will inevitably drive the consumption of paper and board; In addition, welfare will be improved continually, these factors will promote consumption; One more thing is fueling the recycled paper and paperboard to boiler gains energy reuse, which is a sustainable development industry, So the industry is necessarily to move forward; Also, the e-business develops continually, after customers place the online orders, the goods need packing, packaging demand will promote the development of paper industry.