Advanced "bio-enzyme pulping technology" officially entered the environmentally friendly pulp industry

Paper industry is an important pillar of our national economy, however, China's lack of natural forest resources, the most important raw material for paper pulp can not meet the domestic market demand, more than 60% of the pulp in China need to import - such a large demand gap, if who can take the opportunity will have a good development. Recently, Kiaoxiong International (http://0381.HK) intends to acquire a company specializing in operating forest pulp integration projects at HK $1 per share for a total of HK $800 million to officially enter the environmentally friendly pulp industry. The seller has made a profit commitment of HK $700 million in 2019, HK $2 billion in 2020 and HK $5 billion in 2021 to Kiaoxiong International. In simple terms, the integration of forest pulp is to integrate the three links of forest, pulp and paper that were originally separated, and the paper enterprises themselves afforestation and produce their own pulp to solve the problem of raw materials, and realize the ecological papermaking and sustainable management of enterprises. In fact, forest-pulp integration projects have long been developed in China, but most of them are small in scale, immature in technology, unsatisfactory in development, and ultimately ended with regret. The forest-pulp integration project operated by the target company acquired by Qiaoxiong International does have many special features.

Advantaged geographical location

The "Forest-pulp integration" project that Qiaohsiung International will operate is located in the heart of the Amazar Forest in Russia, with unrivalled resource advantages. It should be known that Russia's renewable forest resources account for a quarter of the world, its Far East and Siberia forest resources area accounts for 71.95% of the national forest area, wood storage accounts for 65.43% of the country, forest resources are very rich.

On this fertile soil rich in forest resources, the project has nearly 3 million hectares of fine forest land, which borders Heilongjiang Province, Heilongjiang Province has prominent advantages in economic and trade cooperation with Russia. At the same time, the project's forest land is adjacent to the port, only 75 kilometers away from the port, looking around China's surrounding land borders and ports, there will be no second company in the future can have such convenient logistics conditions. Unique natural resources, unparalleled logistics conditions, the achievement of wood pulp "foreign production and domestic sales" of the low-cost special case, coupled with the advantages of Sino-Russian economic and trade cooperation, is the initial impression of this project.

The general trend is the main driving force of the project

Although China is large and abundant, but the natural forest resources are very scarce, the total amount is seriously insufficient, and the per capita forest savings area is only 1/7 of the world per capita level, China can achieve only 9.96 million tons of self-produced wood pulp every year, and the entire paper industry needs 28.77 million tons of wood pulp per year, the total amount of imported wood pulp 18.81 million tons, more than 65% of the wood pulp needs to be imported. Excessive dependence on import of raw materials is the biggest problem in China's paper industry.

From the perspective of the global pulp industry, China is currently the world's largest pulp import country, and the trend is rising year by year, while the domestic pulp industry has high energy consumption, high pollution problems - with the continuous increase of domestic environmental protection efforts, more than 10,000 paper mills were forced to stop production, domestic pulp production further reduced has become an indisputable fact. In the face of this market situation, only large-scale plantation can alleviate the problem of high import degree of domestic pulp to a certain extent, and vigorously develop the "forest pulp integration" project is the trend of The Times. The "Forest-pulp integration" project requires paper enterprises to assume the responsibility of afforestation and solve the problem of wood raw materials by themselves, which is a good strategy to achieve sustainable management and sustainable development from the root.

Multi-policy support is the strongest promoter of the project

As early as 2007, the national leaders have reached a consensus with the Russian leaders on this "forest pulp integration" project, and have also expressed their affirmation and concern for this project.

In the past few years, in order to promote the smooth progress of this project, both countries have introduced a lot of supporting policies. The project has been included in the strategic framework of China's "Belt and Road" China-Mongolian-Russia Economic corridor, the National Development and Reform Commission's "13th Five-Year Plan" international production capacity cooperation key projects, the Ministry of Commerce identified as the Sino-Russian forestry resources cooperation development of the 10 key projects. The government of the Russian Federation and the government of the Post-Baikal Border region respectively listed the project in the priority development plan of the forestry sector, and it is also the only priority development project in the forestry sector of the Post-Baikal territory. The government of the Post-Baikal Region has included the project in the future socio-economic development plan, and has declared that the project will be included in the supervision of the Prime Minister of Russia, and regularly report to President Putin.