Future trend of paper industry agglomeration development

Especially in the context of RMB appreciation.

How should China's paper industry treat the entry of foreign capital? underneath

The production and consumption of the global paper industry are increasing at a rate of 2%-3% every year, while the paper industry in China is developing rapidly, with an increase of more than 10% in recent ten years. In 2005, the output reached 56 million tons, accounting for about 10% and 14% of the world total, ranking second in the world. The rapid development of China's economy provides a huge growth space for the paper industry. The domestic paper industry has been unable to meet the huge domestic market demand, so that the paper industry in China maintains a growth rate higher than GDP every year.

Behind the rapid development of China's paper industry, the shortage of funds, raw materials and dependence on foreign countries has become a stumbling block, which makes the international paper giants, suffering from soaring costs and dull demand, envious and look to China. Under the dual effects of the huge demand market and the demand of China paper industry, China has undoubtedly become a realistic choice for domestic and foreign capital to pursue profits. According to statistics, the production and consumption of paper industry in the world are increasing at a rate of 2%-3% every year, and the growth rate in Asia is 8.5%, ranking first in all continents, while the paper industry in China ranks first in Asia with a growth rate of over 10% in recent ten years. Last year, there were about 3,600 papermaking enterprises in China, with an output of 56 million tons, an increase of 13 1% over the previous year. At present, China's output and consumption account for about 10% and 14% of the world respectively, second only to the United States. However, just behind the prosperity of the paper industry, the shortage of capital and raw materials and the heavy dependence on foreign technology and equipment have also become a stumbling block to the rapid development of the paper industry. Take the import of raw materials as an example. About 80% of raw materials for papermaking in China need to be imported, especially for producing high-grade paper products such as coated paper, lightweight coated paper and white cardboard. In addition, China has overcapacity in low-end products, and demand for high-end products exceeds supply. According to statistics, the country spends nearly $5 billion annually on importing paper products. Whether M&A abroad is feasible or not, the biggest M&A case in the paper industry, which was once a sensation, was aborted in the brewing process. On May 20th, Chen Ming and CVC signed the Letter of Intent for Strategic Investment in Directed Issuance and Subscription of Shares, which will issue no more than 654.38 billion A shares to CVC Asia-Pacific Enterprise Investment Management Co., Ltd., and the total amount of funds raised will reach 5 billion yuan, so as to solve the problem of capital shortage and liabilities that plague Chen Ming's development, especially the problem of high short-term debt ratio. However, after a lapse of more than two months, the board of directors announced the termination of the letter of intent for investment, and explained that the two sides "failed to reach an agreement on the future business philosophy and ideas of the company and the composition of the board of directors". Whether joint venture is a new way out for the paper industry or not, the most common foreign merger and acquisition seems to be not smooth, but the demand for foreign capital in the paper industry has not decreased, and the enthusiasm of foreign capital for the paper industry in China has not been doused. At present, a safer way is popular between domestic paper mills and foreign investors, namely, joint venture with core capital. In the words of Li Hongxin, chairman of Sun Paper, we don't need to cooperate with the whole company, we just need to take out a piece and try it first and do experiments. In August 2008, Yanzhou International Paper and Sun Paper established a joint venture company. On the basis of cooperation with Sun Paper's existing coated white paperboard production line, International Paper invested another $654.38+0.6 billion to build a new liquid packaging paper production line with an annual output of 300,000 tons. After the project is completed, the joint venture company can form a sales scale of 5.2 billion yuan, with profits and taxes of more than 700 million yuan. Related reading: The present situation of China paper industry is gratifying. After rapid development in recent years, some leading domestic papermaking enterprises have strong strength and competitiveness in technology, scale, capital and management, and have the overall strength to compete with foreign capital. They showed the new face of the domestic paper industry with the growing enterprise scale and high-speed market share. Among them, private enterprises are the main new force, and their rapid development in recent years has become the main force affecting foreign capital's merger and acquisition of China paper enterprises. According to the reporter's understanding, the newly established lineup of the Paper Chamber of Commerce of the All-China Federation of Industry and Commerce is an example of the scale and strength of the paper industry in China. The Chamber of Commerce is composed of more than 200 powerful and large-scale member enterprises in China. Coincidentally, almost all of these enterprises are domestic papermaking enterprises, and most of them are private enterprises, which are considered by experts to represent the main strength and development direction of the domestic papermaking industry. Among them, Shandong Sun Paper is the largest private papermaking enterprise and the largest production base of high-grade coated packaging paperboard in China; Huatai Group is the largest newsprint producer in China, and its newsprint output accounts for 1/3 of the total newsprint output in China. Hunan Taigelin Paper Company ranks among the top 4 domestic papermaking enterprises and is one of the only remaining state-owned papermaking enterprises. Ningbo 3A Group is the world's largest supplier of playing cards and the only supplier of stamp paper in China. David Paper (Guangdong) Co., Ltd. is one of the largest producers of household paper in China. China Pulp and Paper Research Institute is the most authoritative academic institution in China. Comment: The paper industry needs independent innovation. Internationally, the paper industry is the third largest industry after telecommunications and steel, and it is one of the important symbols of a country's economic development level and people's living standards. With the rapid development of domestic economy, the paper industry has gradually become one of the important industries in China, and with the improvement of the system and the requirements of scientific development, paper enterprises are developing in the direction of high-tech content and high capital-intensive, with larger and larger enterprises and stronger strength. In this way, before the national paper enterprises, if they want to develop rapidly, they can't do without advanced technology and equipment, and advanced equipment can't do without funds.

Source: China Paper Network