Huatai Group Launches 16-Billion-Yuan Integrated Forest-Pulp-Paper Project In Guangxi

Huatai Group announced a massive 16-billion-yuan investment in Yulin, Guangxi, for a fully integrated forest-pulp-paper facility producing 400,000 tons of dissolving pulp, 600,000 tons of chemical wood pulp, and 900,000 tons of eco-friendly industrial paper annually, backed by a 1.5-million-mu (100,000 hectare) raw material forest base. This vertical integration secures supply chains against pulp price volatility, enhances resilience, and leverages low-cost Southeast Asian timber while aligning with China's energy efficiency regulations effective May 2025, incorporating advanced water treatment and waste management for environmental compliance. The project reflects industry consolidation, with top five producers holding 45% domestic market share amid 2.7% y-o-y paper output growth to 106.659 million tons (Jan-Aug 2025), though 60% operating rates highlight overcapacity challenges. Globally, it intensifies pulp import pressures (up 5% to 24.108 million tons) and boosts China's paper exports (up 23% H1 2025), influencing trade dynamics with markets like India.​