The market demand potential is huge, and the process of equipment localization is accelerating

China's forest resources are relatively scarce, the forest coverage rate is far lower than the global average of 31%, and the per capita forest area is only 1/4 of the world's per capita level. Among them, the annual growth of timber forests that can be harvested is less than 100 million cubic meters, resulting in a greater dependence on pulp imports in China. In 2021, China will import 29.69 million tons of pulp, accounting for about 27% of the country's pulp consumption. After the Ministry of Ecology and Environment of China announced a total ban on the import of waste paper in 2021, China's pulp imports have declined, and 29.16 million tons of pulp will be imported in 2022, down 4.8% from 2020. In the case of limited pulp imports and rising demand, increasing the capacity of pulp production line is an important way for the paper industry to increase production, and the new pulp production capacity will drive up the demand for pulp production equipment.

Machine-made paper and paperboard are widely used in many fields, and data from the National Bureau of Statistics show that from 2018 to 2022, the production of machine-made paper and paperboard in China has risen steadily. In 2022, the national production of machine-made paper and cardboard 136.914 million tons, an increase of 0.79%, the industry continues to grow, the huge domestic demand for paper equipment provides a broad space for development.

Machine-made paper and paperboard are widely used in many fields, and data from the National Bureau of Statistics show that from 2018 to 2022, the production of machine-made paper and paperboard in China has risen steadily. In 2022, the national production of machine-made paper and cardboard 136.914 million tons, an increase of 0.79%, the industry continues to grow, the huge domestic demand for paper equipment provides a broad space for development.

Household paper is a huge consumption of daily consumer goods, with China's economic development level and people's living standards are increasing, the consumption of household paper in all regions of the country has shown a steady growth trend. Data show: in 2021, China's household paper consumption reached 11.62 million tons, an increase of 10.77%, the domestic household paper market size of about 14.66 billion yuan, is the world's largest consumer of household paper.