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.

Such a high level of national attention is naturally not without tax and subsidy concessions, domestic, the project has fully met all the conditions of China's national overseas industrial park, according to relevant policies, after the successful application of China's national overseas industrial park, the company will receive at least 400 million yuan of state subsidies, 8-year project discount loans, subsidies of more than 600 million yuan. On the Russian side, the tax incentives are not small, the project is a concrete result of the forestry cooperation between the Chinese and Russian governments, and has been included in the "priority development project" of the government of the Russian Federation and the government of the post-Baikal Frontier region; This will be the only enterprise in the Russian forestry sector that can enjoy a 14.5% corporate income tax discount; Second, the rent of forest land is halved; Third, property taxes will be halved. In addition, the site of the project will be included in the advanced development zone, and the enterprise will be exempt from income tax for the first five years from the profit year, and the tax will be halved for the last five years. Property tax is exempted for five years and halved for the next five years. It can be seen that the preferential policies of real money and silver at home and abroad are strong, which not only shows the importance of China and Russia to the project, but also shows the high feasibility of the project in the future.

Russia has regarded the development of the forest industry as an important economic pillar industry, and China is in urgent need of such "foreign production and domestic sales" enterprises to solve the shortage of raw materials for the paper industry, so the cooperation of this project can not only bring excellent benefits to our paper industry, but also very fit Russia's national development strategy, which can be described as the true sense of "mutual benefit and win-win, the trend of The Times". It is precisely this timing that makes this project land so quickly.

"Bio-pulping technology" casts the soul of the project

For a long time, China's paper industry has been questioned by the market because of "high energy consumption and high pollution", and even "no alkali pulp", with the improvement of domestic environmental protection, many traditional paper mills are closed, and the market has to begin to seek new pulping processes.

The target company acquired by Qiaoxiong International already has the world's most advanced ultrasonic assisted biological enzyme production pulp process, and was awarded the title of "2018 National Key Environmental Protection Practical Technology" by the government. At present, this technology can achieve clean and environmentally friendly pulp production with zero emissions of pollutants, and can get pulp in more than 4 hours, without the traditional addition of chlorine, acid, alkali, and high temperature and pressure. Can realize the true sense of environmental protection pulping, this technology will save at least 1,000 yuan per ton of chemical costs and environmental protection costs for the company, the overall cost will be reduced by 75%, profit doubled, greatly enhance the company's competitiveness in the industry.

According to the national policy requirements, around 2020, China will completely ban the import of waste paper and other foreign waste, when the price of pulp will continue to rise, and the company's biological enzyme pulping process can use China's annual more than 700 million tons of straw, wheat grass, sorghum stalk, cotton stalk and other agricultural waste to produce pulp. It can even mobilize farmers to use barren mountains, wasteland, desert land, saline-alkali land to plant giant fungus grass, and use giant fungus grass to produce pulp, which not only realizes the transformation of waste into treasure, but also breaks the industry pattern of deforestation and pulping. This process is very simple, preparation to put into production only six months of time, one year after production can recover the investment cost. The company and Qiaoxiong International cooperation, integration of all the resources that can be integrated, plan to use 3 years in the country to replicate 300 pulp mills with an annual output of 100,000 tons, there will be more than 50 billion yuan of profit per year.

Tall giant fungus

It is important to know that if the future use of this pulping technology to crop straw as raw materials, a pulp mill with an annual output of 100,000 tons can process and digest 500,000 tons of straw each year, the government can increase the tax revenue of more than 50 million yuan per year, and at the same time, it can also let 3,000 poor farmers out of poverty, which will completely subend the development pattern of China's paper industry. A new round of industry reshuffle will also come, to that time, who master this pulping technology who will have the right to speak in the industry.

Pulp produced by ultrasonic assisted bioenzyme pulping technology

The project is progressing smoothly and the future market is expected

The total investment of the "forest pulp integration" project is about 6.2 billion yuan, and the investment of the first phase of the project is about 5.5 billion yuan. After the completion of the construction, it is planned to harvest 1.6 million cubic meters of logs, process 380,000 cubic meters of sawn timber, and design capacity of pulping 243,500 tons. At present, the project has completed an investment of about 3.4 billion yuan, and the completion progress has reached 70%, and the equipment installation stage has been fully entered.

As for the future development prospects of this project, as long as a rough calculation can be seen, the sawn timber at the current Manzhouli port 1,150 yuan/cubic meter, pulp shipped to East China 7,000 yuan/ton (including tax) calculation, annual sales revenue of 2.2 billion yuan, annual net profit of 1.1 billion yuan, sales net profit rate of more than 50%. The economic benefits are considerable.

Excellent natural forest resources are rare highlights of this project, superior geographical location to the pulp "foreign production and domestic sales" brought the convenience of policy and transportation, and the company master the ultrasonic biological enzyme pulping technology and the perfect combination of the project, for the company in the environmental pulp industry to open a good start, coupled with the industry demand without doubt, the future development of the project is worth looking forward to.