China's Guangxi Guitang to add 45.6M yuan, 15,000 tonnes/year tissue paper line to produce mid- and low-end consumer grades, aims to restructure its product mix, eyes low-end markets in China's Guangxi, Yunnan and Guizhou regions
May 15, 2013
(China Paper Online)
– Reported by First Financial Daily:
Guangxi Guitang Co., Ltd issued a bulletin, where it announced to build a mid and high end tissue paper line of 15,000 mtpy at total of 46.5 million yuan within one year.
As to expanding the paper line, Guitang Co., Ltd intended to optimize product mix and tap mid and low end consumer markets. In fact, since 2010, pulp and paper market has been sluggish.
In the period, Guitang Co., Ltd fell into doldrums of heavy stocks, which forced it to take downtime and profitability of pulp and paper products slumped. Some product segments even saw losses. As a result, the company took a key measure against the sluggish market to restructure product mix and intensify efforts in producing and selling tissue paper.
According to the bulletin, the focus of future development will be centering on expansion of capacity, raising product quality, lowering cost and developing many different kinds of tissue products to meet demand of people in different social level.
It was learnt that currently Guitang Co., Ltd is producing high end tissue paper products catering to high end consumers but is lack of products that cater to mid low end consumers, which shadowed company market shares. Hence, the company suggested optimizing tissue paper product structure and to tap tissue paper markets in Guangxi, Yunnan and Guangxi where there are lot of mid low end clients.