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Nine Dragons announces another 54,000 tonnes’ worth of P&B downtime in China

  • 27/09/2022

    • Nine Dragons Paper (Holdings) is continuing with downtime at its flagship mill in Dongguan city, China’s southern province of Guangdong, removing another 54,000 tonnes of paper and board (P&B) supply by September 26 on top of earlier production cuts.

    All 16 P&B machines at the Dongguan mill, representing a total capacity of 5.85 million tonnes/yr, have gone offline alternately since late July.

    In the first half of September alone, the facility is estimated to have reduced its output of recycled containerboard by nearly 62,000 tonnes and coated duplex board by almost 47,000 tonnes.

    Entering the second half of the month, the company announced that PM 1, a 200,000 tonne/yr recycled linerboard machine at the Dongguan mill, will stay offline from September 15 to September 21. The unit was previously scheduled to resume production on September 16 after a 10-day outage from September 6.

    Similarly, the 450,000 tonne/yr coated duplex board machine PM 4, which has been out of operation since September 9, will remain so until September 26. The halt was initially set to last for only a week.

    PMs 13 and 19, with a combined recycled linerboard capacity of 850,000 tonnes/yr, will go through an 11-day stoppage from September 16, according to the latest timetable.

    PM 3, a 400,000 tonne/yr recycled linerboard unit, is scheduled to suspend production for six days from September 21.

    PM 28, the sole uncoated fine paper machine at the Dongguan mill with a capacity of 250,000 tonnes/yr, will briefly halt production for two days from September 15.

    Apart from the cuts at the Dongguan mill in Guangdong, Nine Dragons has also been slowing production at its mills in Chongqing, Liaoning, Tianjin, Hebei, Jiangsu and Fujian this month, planning to trim more than 320,000 tonnes of P&B supply, mostly of recycled containerboard and coated duplex board.

    The massive downtime is quite unusual for this time of the year as September is generally a peak season for the Chinese packaging industry. But packaging demand in China has been exceptionally sluggish this year as the country’s economy struggles with the government’s strict "zero-COVID" policy.

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