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Oji Paper makes huge investment in China

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Oji Paper makes huge investment in China

July 18, 2010 - 20:38

SHANGHAI, July 19, 2010 (RISI) -Chinese fine paper production is booming and the newly started up greenfield Oji mill in Nantong city, in the eastern province of Jiangsu is an excellent example. The project has been the biggest ever investment for Oji Paper in China.

The location for the new paper mill - the city of Nantong, was chosen due to its proximity to Shanghai and the good infrastructure in the Nantong Economic Technological Development Area.

"The location near the Yangtze river makes it easy for the mill to get water. In addition, we can take advantage of the waste water pipeline built by the local government from Nantong to the Huangpu River, which is good from an environmental point of view," says Hiroyasu Hayano, director/deputy general manager of Jiangsu Oji Paper.

Jiangsu Oji Paper has produced its first paper on a new coated woodfree (CWF) machine, PM 1, supplied by Voith Paper.

About PM 1

Jiangsu Oji Paper has produced its first paper on a new coated woodfree (CWF) machine, PM 1, in the mill. The unit was supplied by Germany's Voith Paper and has a wire width of 8.2 m and a design speed of 1,600 m/min. Oji started mechanical tests on the PM in May.

The whole production line, including stock preparation and the approach flow system, was designed according to Voith's One Platform Concept and has been optimized for minimum energy and fresh water consumption.

In addition to the paper machine, Voith supplied an off-machine coater with four blade coaters, two Janus offline calenders and two VariPlus winders. An automation package and electrification, erection supervision, commissioning and training also formed part of the scope of supply.

PM 1 will be capable of making coated and uncoated fine paper in the 40-140 g/m² range. The current weight of uncoated paper that PM 1 is producing is 73 g/m², and the coated weight is 113 g/m².

PPI interviewed Hiroyasu Hayano (left), director/deputy general manager and Muraji Nishi (right), general manager, Jiangsu Oji Paper.

Further expansions

The unit is the plant's first paper machine. It will be followed by a 700,000 tonne/yr bleached hardwood kraft (BHK) pulp line in 2013. Until the BHK line comes on stream, PM 1 will be fed with market pulp.

"PM 1 mainly uses short fiber from Brazil, Cenibra, a subsidiary company of Oji Group and also Japan. In addition, it is using some long fiber imported from North America," says Muraji Nishi, General Manager of Jiangsu Oji Paper.

In addition, Jiangsu Oji mill's expansion is in the pipeline. "We are also planning for PM 2 in 2014/2015 with a capacity of 400,000 tonne/yr. PM 3 is also in the pipeline depending on market conditions. PM 3 may produce low basis weight fine paper," adds Nishi.

PM 1 is expected to go commercial by the end of this year after the trial runs are completed. The products will aim for the domestic market.

Despite the local market's fast growth, there are concerns of oversupply in the CWF paper grade. APP China started up on the world's largest coated fine paper (CFP) machine at its mill in Hainan. Other big players like Shandong Chenming and Shandong Huatai are also expanding within the paper grade in the coming two years.

"We are optimistic about the Chinese market," says Nishi.