The Chinese paper and packaging industry is enjoying a surprising upswing despite the reduced demand for printing and writing paper, thanks to the rising demand for paper tissue products as well as cardboard boxes used by online shopping firms, China Technology News reported.
Jari Rosendal, president and CEO of Finland-based paper chemicals maker Kemira, said that China's online shopping market has been a great help to the packaging sector.
"You have no idea of how much it (China) means to the packaging industry," Rosendal said. "On days when people go on an online shopping spree, billions of cardboard boxes are consumed."
The strong performance of China's paper and packaging sector can also be attributed to the increasing demand for paper tissue products, including basic sanitary paper, waterproof kitchen towels, and recyclable tissues, according to experts.
China is now the largest paper producer in the world, and the country's production capacity has increased by three times in the last 10 years.
The Chinese paper and pulp industry, however, is not expanding as fast as in the past, despite the country's economic growth and the quick rise in demand for paper and pulp products, Rosendal said.
The slowing growth of China's paper industry can be blamed on the increasing use of Internet to search for news and information, resulting in lower demand for printing paper.
Despite the industry's sluggish growth, Kemira still plans to make more investments and expand its packaging, paper boards and paper tissue business in Asia to offset losses in weak markets such as Europe.
Kemira opened a manufacturing facility in Nanjing last year, and it intends to invest $100 million on the site, which will be the biggest of its kind in the Asian region.