The Development Direction Of The Paper Industry

Upstream paper industry market capacity is more concentrated

1. Paper companies have entered the mid-year maintenance period one after another, leading companies actively suspend production to control production capacity. It is reported that on June 7, 8, and 9, 2017, the three paper giants of China Paper, Chenming Paper and Bohui Paper took the initiative to respond to the national supply-side reforms, accelerate capacity reduction, improve quality, and control environmental protection policy requirements. Downtime plan.

2. Supported by the rising price of raw waste paper, the current supply of waste paper is in short supply, and it is difficult for some companies to maintain continuous production.

3. Environmental inspections have led to the continuous withdrawal of small factories and more concentrated production capacity.

It is reported that the gross profit margin of paper companies is usually 10%-12%. According to estimates, the investment in environmental protection equipment that meets the standard is about 200 million yuan, and the current net profit per ton is 400 yuan. The production line with a production capacity of 500,000 tons can recover the investment in the first year, which will limit the production capacity of small paper mills.

Under such an industry structure, how will downstream paper package factories be affected?

Some insiders predict that the increase in paper prices may continue until the end of this year. Due to the excessively high price of paper and limited paper supply, in the long run, some second-tier factories will be unable to support due to insufficient capital, and third-tier factories will find it difficult to implement price increases. This is the industry's reshuffle and reintegration. process. There are now many powerful large-scale secondary factories are expanding new projects, and the number of small orders will gradually decrease, which will accelerate the process of industry reshuffle.

The downstream packaging market is highly competitive

According to the following analysis data, paper packaging companies are affected by material price fluctuations. For example, the gross profit margin data of the listed company Hexing Packaging in the first quarter showed that its gross profit margin declined slightly year-on-year. In the first quarter of 2017, the gross profit margin was 15.5%, down 2.1% year-on-year. The decline in gross profit margin was more due to the sharp increase in the price of raw corrugated cardboard. The gross profit of leading companies has declined, so the impact of other companies can be imagined.

The future development of paper industry packaging still faces a good room for development. However, in view of the excessive packaging problems caused by the fast-moving consumer goods industry such as tea and alcohol and the express industry, relevant state departments may urge leading companies in the industry to save resources through scientific design To curb excessive packaging and waste of resources. This may affect small businesses or companies with poor quality.

As a paper company, in such an industry shuffled period and an increasingly competitive environment, how should it develop to face the storm and not be eliminated? How can we not only meet the requirements of low carbon, but also conform to the trend of green development, and achieve profit growth in the fierce competition?

expert advice：

Internet-based applications drive the development of packaging and printing industry

Internet packaging connects all parties in the industry chain to the same platform. Informatization, big data, and intelligent production will greatly improve operational efficiency, reduce costs, and provide customers with fast, convenient, inexpensive, and high-quality integrated services.

Energy saving and consumption reduction, transformation of high energy consumption equipment

As a paper packaging company, it should broaden its thinking, and work harder to save energy and reduce consumption. Through proper transformation of high-energy-consuming equipment, changing the original production technology level, conditions, and improving management level, various resources such as water and electricity can be effectively saved, and their utilization rate can be improved, thereby reducing energy consumption expenditure and achieving cost reduction purpose.

The advantages of the upstream, middle and downstream industrial chains complement each other and share information

The upstream and downstream industrial chains are inextricably close. You have me in you, and you in me. Anyone who gets into a predicament will bring a devastating blow to the other. Taking benefits as the starting point, industry chains should fully complement each other's advantages and share information.

In addition to keeping a group for heating, companies also adapt to local conditions, learn from each other's strengths, and accumulate development momentum. As an enterprise, if you consider from a long-term perspective, production reduction and rotation training are also good ways. In addition, to reduce management costs, we should start from the management and quality of the enterprise, make full use of our own characteristics to upgrade and replace new products, and increase the technological content and economic added value of the products.