Since 2017, under the national policy of reducing excess capacity, China's paper industry embarked on a rapid and large-scale expansion of production capacity, shattering the previous supply-demand balance. Since 2021, paper prices have remained sluggish for four consecutive years, leaving the industry heavily indebted and mired in losses.
In 2025, under the backdrop of the national “Supply-Side Reform 2.0,” new million-ton-scale paper projects continue to emerge one after another, with an almost overwhelming momentum across the country.
Chongqing Nine Dragons 1.7-Million-Ton Pulp-Paper Integrated Project
On July 22, Nine Dragons Paper officially signed a 6-billion-yuan pulp-paper integrated intelligent factory project in Chongqing Hub Port Industrial Park. With this move, Nine Dragons targets the industry's key pain points through a “pulp-paper integration” model: Phase I will build a 700,000-ton green pulping production line to secure self-sufficiency in raw materials; Phase II will add a 1-million-ton high-grade paper production line, completing a closed-loop industrial chain.
Huatai 16-Billion-Yuan Coastal Pulp-Paper Integrated Project
On July 1, the Yulin Municipal Government, Huayou Holdings Group, and Huatai Group signed a cooperation framework agreement in Nanning. The total planned investment for the project is 28 billion yuan, of which 16 billion yuan will be used to build a coastal pulp-paper integrated project. The plan includes production lines for mechanical pulp and specialty papers, as well as cooperation on establishing raw material forest bases.
Xianhe 2-Million-Ton Bamboo Pulp-Paper Integrated Project
On the evening of July 2, Xianhe Co., Ltd. announced that on June 30, it had signed an Investment Agreement for a Bamboo Pulp-Paper Integrated High-Performance Paper-Based New Materials Project with the People's Government of Hejiang County, Sichuan Province. The project has an estimated total investment of about 11 billion yuan and will include production lines for 800,000 tons of bamboo pulp and 1.2 million tons of high-performance paper-based new materials annually, along with related supporting facilities. The two-phase project will cover an area of approximately 267 hectares.
Century Sunshine 2.65-Million-Ton “Paper-for-Plastic” Project
On the morning of January 11, Century Sunshine signed an agreement for its “paper-for-plastic” project in Rizhao, with an annual production capacity of 2.65 million tons. The project has a planned total investment of 20.2 billion yuan and will cover a total area of approximately 144 hectares, located in the Rizhao Economic and Technological Development Zone. Construction is planned to be carried out in three phases.
Zhihu Yuanchuang 1.26-Million-Ton Household Paper Project
On January 8, construction began on the Zhihu Yuanchuang household paper full-industry-chain project in the Binjiang section of Jiangnan Industrial Park, Guigang, Guangxi. Covering an area of approximately 140 hectares, the project has a total planned investment of 13.7 billion yuan and will be built in two phases. Phase I will include production lines for 330,000 tons of bleached chemical pulp and 300,000 tons of household paper plus post-processing facilities. Phase II will add another 330,000 tons of bleached chemical pulp and 300,000 tons of household paper with post-processing facilities.
What's even more striking is that since 2024, Guigang City has signed agreements to introduce three full-industry-chain household paper projects — Lee & Man, Zhihu Yuanchuang, and Taisheng — each with investments exceeding 10 billion yuan. Additionally, there are 26 key paper industry projects currently under negotiation or construction.
It is well known that paper production capacity is already severely oversupplied, yet these new mega projects keep emerging in a rush — truly one of the most bizarre phenomena. There is no doubt: the era of paper oversupply is upon us.
