The scale of automation in the paper industry is still in a short period of transformation and upgrading.

In the fourth quarter of 2015, the market scale of the paper industry automation products was 232 million yuan, down 8.5% year-on-year. The paper industry will still be in a period of transformation and upgrading in the short term.

In 2015, the production and operation of the paper and paper machinery industry was basically stable, and the major industrial economic indicators of the industry were better than in 2014. According to the National Bureau of Statistics, in 2015, the income from paper and paper products owner business was 1,392.34 billion yuan, a year-on-year increase of 3.03%; the total profit was 74.44 billion yuan, a year-on-year increase of 6.5%; the loss of loss-making enterprises was 9 billion yuan, a year-on-year decrease. 160 million yuan.

Despite this, it is still difficult to judge the paper industry out of a weak situation. Data from the National Bureau of Statistics also showed that in 2015, the fixed assets investment in the paper and paper products industry totaled 281.255 billion yuan, a year-on-year increase of only 0.4%, and the growth rate fell by 6 percentage points year-on-year. Fixed assets investment in the paper industry is mainly concentrated in upstream pulp production, investment in forest resources, energy-saving transformation in the industry, and restructuring reforms. In terms of output, the cumulative production of mechanical paper and paperboard in 2015 was 117,741,000 tons, a cumulative increase of 1.7% year-on-year, and the growth rate fell by 1.1 percentage points. The main reason is that due to the impact of excess capacity transformation and industry restructuring period, new capacity is gradually reduced, and paper mills generally have idle or closed production lines. Among them, newsprint production was 3.502 million tons, down 4.2% year-on-year, mainly due to the impact of new Internet media on the paper media industry.

From the perspective of the scale of the automation market in the paper and paper machinery industry in the fourth quarter of 2015, the situation is not optimistic. Automation products are widely used in the paper and paper machinery industry. The main product types are transmission systems, control systems, actuators and process control instruments. In the fourth quarter of 2015, the market scale of paper industry automation products was 232 million yuan, down 8.5% year-on-year; the market size of paper machinery industry automation products was 0.41 billion yuan, down 8.4% year-on-year. The industry API index is less than 100. Affected by factors such as the overall economic environment, overcapacity, resource integration, and industrial restructuring, and with the introduction and implementation of new environmental protection policies such as the “New Environmental Protection Law” and “Water Ten”, the paper industry’s new construction and renovation projects have decreased. The market for automation products in the paper and paper machinery industry has shrunk.

According to the current situation, the production and sales of the paper and paper machinery industry in 2015 are still tepid, the market confidence is weak, and the industry is still not completely out of the predicament. Looking forward to 2016, due to the slowdown in economic development and the structural overcapacity of production capacity, the paper industry will still be in a period of transformation and upgrading in the short term, which will continue the downturn in 2015 and there is no sign of recovery. The scale of the paper industry automation market will continue to decline year-on-year, but the decline will not continue to expand.

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