Chinese 2004 paper production jumps 15.1%.

CHINESE 2004 PAPER PRODUCTION JUMPS 15.1% In 2004, the Chinese government implemented broad macro economic regulations to curb its overheated industries and slow down fixed asset investment growth. However, China's GDP reached 9.5% in 2004, much higher than the targeted 7% by the Chinese government, according to a new report by Research and Markets, Dublin, Ireland. As a result of the overall economic growth, China's papermaking industry saw positive developments in 2004. Total paper and paperboard production reached 49.5 million metric tons, 6.5 million metric tons or 15.1% more than in 2003. Total paper and paperboard consumption reached 54.4 million metric tons, 6.3 million metric tons or 13.2% more than in 2003. Production and consumption growth rates in 2004 were even faster than those in 2003; 13.8% and 10.9% respectively.

In 2004, the overall profitability of China papermaking industry improved substantially. Paper mills in China earned sales revenue of RMB 200.9 billion (US$ 24.3 billion) combined, 21% more than in the previous year. Before-tax profit amounted to RMB 18.5 billion (US$ 2.2 billion), 15% over the previous year. The net profit reached RMB 10 billion (US$ 1.2 billion), 17% over the previous year. Foreign invested companies and private companies have been playing an increasingly important role in the paper industry. In 2004, foreign invested companies contributed 28.6% to industry sales revenue and account for 40% of industry net profit while collective and private companies accounted for 46.6% of sales revenue and 35.8% of net revenue.