The paper industry has entered the seventeenth session of the tissue business club meeting in dusk. It was held in Shenzhen on June 27th. At the meeting, everyone agreed that 2012 has become the turning point of the rapid development of the household paper industry in the past 20 years. - The output growth rate has dropped, and it has affected the end market. The company's price reduction promotion activities have continued, and product prices have fallen across the board.
The cost advantages of homemade straw pulp, reed pulp and bagasse pulp no longer exist, the price of raw paper has dropped sharply; the first, second and third-line tissue paper brands have been reduced in price.
Zhang Dongfang, CEO of Vinda Paper (China) Co., Ltd.: According to data provided by Nielsen, the retail industry experienced a rare low growth in the first quarter in the first quarter, with sales of tissue paper products increasing by o
nly 1.6% year-on-year. The amount increased by -1.4%, while the sales of tissue paper increased by 10.4%. This shows that the retail price of Sanitary
paper products is greatly reduced.
Vinda learned from China's top 10 retailers that retail sales in the first quarter of this year only increased by 2% to 3%. This is a situation that has not been seen before. In order to increase the sales volume, the retailer adopts a random extraction method, which manufacturer to draw, which manufacturer to promote, buy one get one free. Therefore, corporate promotions are also helpless. Retailer brands account for 50% of developed countries and their acceptance in China is not high. Therefore, some retailers who mainly operate retailer brands are not suitable for China's national conditions and are difficult to maintain. Chinese enterprises should strengthen their own brand building and jointly safeguard the development of the industry.
Yue Yong, deputy general manager of Zhongshun Jierou Paper Co., Ltd.: The overcapacity of China's household paper industry is very obvious. Enterprises are facing more challenges and more intense market competition.
Chen Jian, general manager of Guangxi Guitang (Group) Co., Ltd.: The price of this year's tissue paper industry is declining regardless of the original paper or finished product. In Guangxi, some new enterprises or new projects that use bagasse pulp as the main raw material mainly sell raw paper, and the sales price of the products is very low. Due to the low price of imported wood pulp, these companies lost the low cost of bagasse pulp raw materials and the price of the products was also affected. At present, many paper-making enterprises that use bagasse pulp as raw materials in Guangxi have low profits and are barely maintained.
Li Gang, general manager of Dongguan White Swan Paper Co., Ltd.: The price of tissue paper has hardly increased in the past 30 years, but the market competition has become increasingly fierce. What we should admit is that the tissue paper industry is rapidly developing due to fierce market competition.
Li Weixian, Chairman of Chenming Paper Group Life Paper Co., Ltd.: Chenming Group entered the tissue paper industry in 2010. The tissue machine with an annual production capacity of 60,000 tons has reached the design requirements, but the realized profit is not satisfactory. Now we can see the daily paper price reduction promotion activities in large supermarkets. Not only the second and third line brands, but also the big brands in the first line are also reducing prices. We are forced to lower prices to sell our products due to market competition and pressure from supermarkets. We feel that business is difficult. I appeal to everyone not to sacrifice profits for sales and sales.
Zhang Donghong, general manager of Bauhinia Paper Co., Ltd.: Bauhinia has been producing home-made paper with homemade wheat straw pulp and reed pulp as raw materials for 25 years. The production capacity of Bauhinia homemade pulp reaches 80,000 tons/year at the most. Affected by the purchase of raw materials, increased transportation costs and rising environmental protection costs, the company has already eliminated 30,000 tons/year of homemade pulp production capacity. Since 2009, the company has gradually produced high-grade tissue paper from commercial wood pulp. At present, the company's total annual production capacity of paper reaches 120,000 tons. The company's product sales market is dominated by the Northwest region. Since the second half of 2012, the company has also been affected by the price reduction, so that the amount of homemade straw pulp has dropped significantly.
Response measure one
Replacement of backward production capacity with modern production capacity, and increase investment in forestry-pulp-paper integration project, energy conservation and emission reduction, and improvement of energy use efficiency, so as to increase production and not increase pollution.
Use advanced production capacity to enhance competitiveness
Xu Xitu, general manager of Jinhongye Paper Group Co., Ltd.: Comparing the per capita consumption of China and South Korea and other developed countries and the retail price of household paper, there is still great potential for the subsequent development of China's household paper industry. As a Honghongye company that has entered the household paper industry and has a certain foundation, it will continue to expand its production scale.
In the long-term planning of the company, in addition to the increase in production capacity, it is planned to continue to increase investment in forestry-pulp-paper integration, energy conservation and emission reduction, and energy efficiency, so as to increase production and not increase pollution. At present, there are two paper machines in the Xiaogan base of Jinhongye, and four paper machines in the second phase. All four paper machines are equipped with energy-saving emission reduction devices. In 2015, the production capacity of Xiaogan base will reach 360,000 tons, and the long-term plan will reach 780,000 tons. By 2015, the total production capacity of the plant under the Golden Hongye Group will reach 2.5 million tons.
Su Shoubin, general manager of Yongfengyu Investment Co., Ltd. China: In the next 2-3 years, Yongfengyu Group will add 8 tissue paper production lines. Although it is not the largest in the industry, it must constantly strive to do its best.
Yang Chuanxin, President of Shanghai Weierfu Group Co., Ltd. and General Manager He Youcheng: Although Weierfu Company is an old company, it entered the household paper industry late. In order to adapt to the development of the industry, the company carried out a shareholding system reform in 2012. In 2012, the company's daily paper production capacity reached 50,000 tons, achieving a balance between production and sales. In the second half of this year, the company will increase the BF tissue machine.
The location of Weierfu, the Shaoxing area of Zhejiang, is increasingly strict with the energy requirements of industrial enterprises. Although this is a great pressure on enterprises, it also provides opportunities for enterprises to improve their production technology and eliminate backward production capacity, and thus enhance their competitiveness.
Chen Hengyi, Fujian Hengli Group Co., Ltd.: In the face of the growth of production capacity in the tissue paper industry, the company must cultivate internal strength, strengthen internal management, optimize production processes, and tap the potential of energy conservation and emission reduction to enhance competitiveness.
Response measure 2
National layout to expand the market
Building new projects, mergers and acquisitions
Zhang Shihua, Vice President of Do
ngshun Group Co., Ltd.: Do
ngshun Group was established in 2000, focusing on the research and development and manufacture of high-end household paper, Diaper
s, Sanitary napkin
s, wet wipes and other sanitary products. The products occupy an im
portant role in the northern Chinese household paper market. Share. The company invested more than 2 billion yuan and built Do
ngshun Industrial Park covering an area of more than 2,000 acres. The main manufacturing equipment, processing equipment and raw materials are all im
ported from abroad. It has introduced 18 internatio
nal advanced BF toilet paper production lines and two Italian-made products. The high-speed servoless diaper
production line and two Italian-made sanitary napkin production lines have also introduced more than 30 processing lines from Korea and Italy. The company's R&D center was identified as a provincial-level enterprise technology center. The company built production ba
ses in Heilo
ngjiang and Hunan to carry out the natio
nal market layout. In 2012, the first phase of the company's Heilo
se project was put into operation.
In 2013, the company is preparing to invest 1 billion yuan to introduce 5 BF-D12 series high-grade high-speed production lines from abroad, with an additional capacity of 150,000 tons/year; and then importing GMD high-grade diaper production line from Italy with an additional capacity of 500 million pieces/year; Introduced two GMD high-grade sanitary napkin production lines from Italy, increasing production capacity by 1 billion pieces/year.
Li Weixian, Chairman of Chenming Paper Group Life Paper Co., Ltd.: Chenming's Wuhan factory life paper post-processing production line was put into operation at the end of July, and the tissue machine was put into operation in September. The group plans to install new tissue machines in Hunan, Jilin and Zhanjiang. Chenming will continue to expand the market by following the strategy of “maximizing sales volume to maximizing profits”.
Lin Ruicai, President of Guangxi Huamei Paper Group Co., Ltd.: Since 2007, Guangxi Huamei Group has used Guangxi sugarcane bagasse as raw material to produce household paper. By the end of this year, the annual production capacity will reach 300,000 tons. At present, the company mainly sells raw paper to Shandong and Henan provinces. The sales volume of its own brands is small, the sales of products are very good, and zero inventory is realized.
In 2012, the Group successfully acquired the former state-owned enterprise, Guangxi Heda Paper, and plans to increase the original 80,000 tons/year wood pulp production capacity to 120,000 tons/year, while increasing 120,000 tons/year of household paper. Capacity, to achieve the integration of forestry pulp and paper.
In 2014, the Group will build a paper towel production project with an annual production capacity of 100,000 tons using bagasse pulp and wood pulp as raw materials in Laibin, Guangxi and Yizhou. By the end of 2014, the Group's total annual production capacity will exceed 500,000 tons. At the same time, the Group will strive to build an excellent brand in the Chinese household paper industry.
Zhuang Rengui, general manager of Lujin Paper Group Co., Ltd.: Lujin Paper is a household paper enterprise invested by Guangxi Huamei Group in Fuqing, Fujian Province. Through the introduction of imported equipment, the annual production capacity is planned to reach 120,000 tons. In 2012, the company started construction of a new project, and has completed the construction of the plant and supporting equipment. It is expected to be put into operation at the end of the year.
Yue Yong, deputy general manager of Zhongshun Jierou Paper Co., Ltd.: Zhongshun Jierou increased its production capacity in Guangdong and Sichuan in 2013. The company plans to increase its annual production capacity to 1 million tons.
Take the product differentiation route
Develop and promote new products, enhance brand value, and maintain product price stability
Zhang Dongfang, CEO of Vinda Paper (China) Co., Ltd.: Vinda has been developing differentiated products to enhance brand value in the past few years. This year, the company launched the ultra-tough series of boxed facial tissues, which fully reflect the product differentiation regardless of the quality of the paper or the outer packaging.
Shanghai Jinlili Paper Co., Ltd. Wu Naifang: The focus of Kimberly-Clark's business in China is still to develop diapers. In 2012, the company's plant in Nanjing was put into production. This year, the company will have five diaper production lines in operation.
In terms of tissue paper, the company continues to make UCTAD differentiated products. The market for Conform wet tissue products has grown rapidly. Therefore, the company will continue to guide consumers and strengthen the promotion of Conform wet tissue products. The company is focusing on the ultra-flexible energy of products and making fine use of household paper products. The company strives to improve production levels and achieve energy conservation and emission reduction.
Ogilvy-made paper Nie Piao (Suzhou) Co., Ltd. Wu Jinlong: Wang Nie has been in China for 10 years, but the production capacity has not changed. The market is mainly concentrated in the Yangtze River Delta.
Strengthen marketing innovation and promote network construction
Create a regional brand to occupy the target market
Zhang Donghong, general manager of Bauhinia Paper Co., Ltd.: The company's future development plan is to produce commercial paper with commercial wood pulp as the main raw material, and continue to use the northwest region as the development base to improve product quality and brand influence.
Zhou Guomin, general manager of Shanghai Nursing Jia Industrial Co., Ltd.: The future development of Nursing Jia is to continue to pay attention to the needs of consumers, based on the Central Plains market and to make regional brands do well. At the same time, the company must improve its internal strength, do a good job in environmental protection, reduce production costs, and enhance competitiveness.
Zhao Lin, Chairman of Shengda Group Jiangsu Shuangdeng Paper Co., Ltd.: How to operate a medium-sized old enterprise like a double lamp? I think the core is to strengthen the cultivation of regional brands and the construction of regional marketing networks. The company should be a product that big companies are not willing to do, small companies can't do, and diversify the product structure to expand the living space. In addition, the company should strengthen the governance of the existing pulp production lines to meet the national standards; it must also eliminate some of the backward paper production capacity.
Chen Jian, general manager of Guangxi Guitang (Group) Co., Ltd.: Guitang changed its controlling shareholder in 2011. The new shareholder is a listed company under the Guangdong Provincial State-owned Assets Supervision and Administration Commission. The five-year development plan after the replacement of shareholders of precious sugar focuses on the production and market advantages of precious sugar in the household paper industry over the years and the advantage of having a large amount of bagasse in Guangxi, expanding the production capacity of household paper in the Guigang headquarters to reduce market operations. Cost and sales expenses. At the same time, the company set up a paper sales company in Guangzhou in an effort to open up the market.
Response measure five
Looking for development opportunities in new markets
Sun Haiyu, general manager of Shanghai Dongguan Huajie Paper Co., Ltd.: Dongguan currently has an annual production capacity of 140,000 tons, and plans to increase production capacity by 40,000 tons by 2015. The company is developing diversified products while doing a good job in household paper products. Currently, there is a sanitary product factory in Suzhou, and sanitary products will enter the market in the second half of this year.
Wang Wei, Chairman of Luohe Silver Pigeon Group: Yinge Group started to expand its tissue paper production capacity in 2010. In 2012, two 60,000 tons/year im
ported Tissue paper machine
s were put into production. At present, the Group's total production capacity has reached 150,000 tons, but the market operation is not. Ideally, the new paper machine has not been profitable since it was put into production. In addition, the company also purchased sanitary ware equipment such as diapers, sanitary napkins and wet wipes. However, the Silver Pig Group has encountered even greater challenges in the field of hygiene products.
This time I attended the meeting and learned that the top companies in the industry are operating very well; the future of China's tissue paper market still has potential for development, which has increased confidence for our company. Silver Pigeon hopes to work with industry leaders to increase the annual production capacity of tissue paper to 240,000 tons.
New projects and capacity expansion projects will increase, and the industry elimination rate will be higher in the next three years.
Enterprises must find a development path that suits them
Cao Zhenlei, director of the China Paper Association's Tissue Paper Professional Committee: This year marks the 20th anniversary of the establishment of the China Paper Association's Tissue Paper Professional Committee. In the past 20 years, the Chinese household paper industry has developed rapidly and healthily, with an average annual output increase of more than 10%. However, the industry first experienced a decline in production growth rate in 2012. It should be said that the industry has entered an extraordinary period and it is worthwhile for the company to think deeply.
At present, the impact on the tissue paper industry is relatively large, and there is a tendency for investment to continue to increase. Therefore, the situation of overcapacity in the industry is not optimistic. Although China's per capita annual consumption of paper is only 4.2 kilograms, there is still a large growth potential compared with more than 20 kilograms in economically developed regions. However, we must rationally compare the per capita consumption of China to about 10 kilograms compared with the surrounding cultural background and climatic conditions. It is not realistic to exceed 10 kilograms. From the development process of developed countries, when per capita consumption increases to 70% of mature consumption, the market will enter a period of slow growth, and it takes a long time for per capita consumption to reach 10 kg.
China's household paper industry uses imported commercial pulp as the main raw material, and it is expected that there will be no major changes in pulp prices in the near future. The development of shale gas in the United States has made energy prices relatively stable. This is a positive side for the company, but the bigger challenge is the increase in labor costs and the increase in the country.