A well-known paper company in Zhejiang has invested over 2 billion yuan to build a packaging project with an annual output of 500 million square meters
Recently, the Zhejiang Provincial Development and Reform Commission and the Provincial Department of Natural Resources issued the "List of Major Industrial Projects in the Province in 2025", and the Huachuan "Paper to Plastic" New Packaging Board Manufacturing Base project with a total investment of more than 2 billion yuan was successfully selected.
Investing over 2 billion yuan to build large-scale packaging projects
The project is invested and constructed by Zhejiang Huachuan Industrial Group Co., Ltd., with a total investment of over 2 billion yuan. The project started construction in early August and is currently undergoing the "three connections and one leveling" of electricity, road, water, and land leveling. The project has a construction period of 2.5 years and can produce 500 million square meters of corrugated cardboard boxes annually after completion, meeting the demand for Yiwu photovoltaic special cardboard boxes and small commodity logistics express packaging cardboard boxes.
According to public information, Zhejiang Huachuan Industrial Group was founded in 1966 and established a group company in December 1998 with a registered capital of 213.5 million yuan. It is a comprehensive resource recycling enterprise that focuses on the development of "papermaking+solid waste treatment+green energy supply", forming an industrial pattern of "paper industry as the mainstay, industry and trade linkage", and building a green and low-carbon circular industrial park.
At present, the headquarters of Zhejiang Huachuan Industrial Group covers an area of over 350000 square meters, with a construction area of 110000 square meters. It has more than 10 paper production lines, mainly producing and selling packaging paper and special paper such as kraft paper and medium high strength corrugated paper. The annual production capacity of various types of paper reaches more than 800000 tons, and it enjoys a considerable market share in East China.
How to view the extension of the paper industry chain downstream by paper companies?
In recent years, the domestic paper packaging industry chain has undergone tremendous changes, and the construction of packaging projects in paper mills and cardboard box projects in cardboard mills has become a trend. The original situation of "separation of paper and packaging" and "separation of board and box" is being reshaped, and the trend of integration between upstream and downstream of the industrial chain is becoming increasingly evident.
The Huachuan "paper instead of plastic" new packaging board manufacturing base project is a microcosm of the paper mill's downward extension of the industrial chain. Paper companies such as Nine Dragons Paper, Shanying International, Century Sunshine Paper, Dongguan Jinzhou Paper, Zhejiang Jingxing Paper, Zhejiang Rongsheng Environmental Protection Paper, and Zhejiang Jinlong Recycling Resources all have related packaging projects and have developed into first-class factories integrating raw paper, cardboard, and cartons.
In the current era of increasing macro environmental uncertainty, this business model involving the entire industry chain can achieve efficient integration and utilization of resources, and help enterprises break through development bottlenecks. As revealed by a person in charge of a domestic paper company, "Compared to paper projects, the investment in packaging projects is relatively small, which can help the group digest raw paper and improve the production and sales rate of raw paper
This to some extent indicates that there may be more paper companies investing in the construction of paper packaging projects in the future. However, based on considerations of existing business models and customer groups, new first tier factories may not prioritize packaging project construction as their development focus, but rather see it as an attempt to explore new profit directions.