China's paper industry has to face such an embarrassing reality: On the one hand, the consumption of paper continues to grow. On the other hand, the impact of accession to the WTO has brought unprecedented difficulties to China's paper industry. Faced with the inability of China's paper products to compete with foreign products, it has lost its market share and the financial situation has been declining. Many people in the paper industry are worried. To this end, reporters interviewed people in the industry.
The paper industry is hard to hide According to Wang Xiang, deputy director of the China Paper Industry Association, from 1990 to the present, the consumption of paper and paperboard in China is increasing at a rate of 12% per year. In 1997, the per capita paper consumption in the country was only about 25 kilograms, which was lower than the world average level of 55 kilograms per person. It was far lower than the 300 kilograms per capita consumption level in developed countries. By 2010, China's consumption of paper and paperboard will be about 60-70 million tons. Although consumption will double in the next 10 years, the per capita consumption level is still not high. Even considering the population growth factor, the per capita consumption level is only 50 kilograms at that time, which is equivalent to the world consumption level in 1996. In 1997, the domestic output of paper and paperboard was 27.44 million tons, which was lower than the consumption of 5.14 million tons. Production is far from satisfying consumption. It has to rely on a large amount of imported paper and cardboard to fill the gap in this market.
According to the data provided by relevant parties, China’s imported paper and paperboard volume was 3.03 million tons in 1996 and increased to 4.5 million tons in 1997. In 1998, imported paper and paperboard increased sharply to 5.77 million tons, resulting in a decrease in self-sufficiency in domestic paper. Trends, domestic product self-sufficiency rate fell from 89% in 1995 to 84% in 1997. Since entering the 1990s, the domestic paper industry has been protected by a small amount of policies, the import tax rate has been continuously lowered, and foreign investment has also been less restricted. The basic self-sufficiency leading to the papermaking industry from the initial stage of reform and opening up has increasingly become a major importer of foreign exchange. In 1999, a total of 6.913 million tons of paper and paperboard and paper products were imported, and 3.988 million tons of commercial pulp, together with 2.571 million tons of waste paper, the total amount reached 125.227 million tons, more than 5.6 billion US dollars in foreign exchange, while exports are negligible.
China's papermaking industry began to change rapidly in 1996. In terms of geography, at present, among the many papermaking enterprises in China, most companies in the northern provinces suffer from the shortage of raw materials and water resources; the companies in the southeastern coastal provinces are heavily affected by the foreign paper companies; the companies in the central provinces, despite raw materials, Water resources have an advantage, but due to backward technology and equipment, the performance of listed companies in the industry has been declining year after year. In terms of company performance, taking the first half of 1999 as an example, the overall performance of listed companies in the paper industry despite the average main business income reached 164 million yuan, an increase of 18.83% year-on-year, but the average net profit was 157.2274 million yuan, a year-on-year drop of 23.30%. The average earnings per share was RMB 0.091 and the ROE was 3.25%, which was lower than the overall average level of the Shanghai and Shenzhen stock markets.
The three major bottlenecks restricting the paper industry to talk about the reasons for this situation. Wang Xiang thinks there are three main reasons: First, the state has invested very little money in the paper industry. As a result, the papermaking industry in China has relied on the disorderly development of a large number of small and medium-sized enterprises in towns and townships. As a result, the paper industry as a whole has become a non-modern and backward industry with low efficiency and heavy pollution.
The second is that the scale of production is small and it is difficult to resist the impact of large areas. According to China's commitment to accede to the WTO, the import tax rate for foreign paper varieties will be adjusted to 5%-6%, which is bound to cause foreign paper to form a dumping trend in China, resulting in many domestic paper-making companies surrendering the market to foreign companies.
Third, the overall level of equipment and technology is not high, and it is difficult to compete with foreign high-quality paper stocks. Most of the technical equipments of domestic companies were imported from the 1960s and 1970s. Although they reached the international level in the late 1980s after technological transformation, they still lag behind those of advanced large-scale paper machines abroad. What's more, there are too many old equipment in the remaining pulp, electricity, alkali, and water plants, and the production efficiency is not high. At present, the actual labor productivity of foreign newsprint industry is about 700-1000 tons/person-year, while domestic companies are far below this level.
An expert from the China Paper Association stated that taking Yueyang Paper Group Co., Ltd. as an example, the company was founded in 1958 and is located in Chenglingji, where the Yangtze River and Dongting Lake meet, facilitating water and land transportation, abundant freshwater resources, and The abundant reeds and poplar wood raw materials in the Lake District make the papermaking experts at home and abroad known as the golden treasures for the development of the paper industry. In the era of planned economy, Yue Paper had several glorious occasions. However, in the process of transition to the socialist market economy system, Yue Paper once lost the opportunities for development. The enterprises are faced with backward technology, outdated equipment, high product costs, single varieties, and benefits. The dilemma of falling year after year. In the past three years, the company has achieved leaps and bounds. Within four years, the company’s labor productivity has increased nearly threefold, the cost per ton of paper has also dropped by 600 yuan, and the product variety has increased from four to sixteen. In 2001, the total profits and taxes of the company reached 212.35 million yuan, of which the profit was 100.35 million yuan. One of the important reasons why Yue Paper has made such great progress is that it deeply understands that “science and technology are the primary productive forces†in the fierce market competition. After the new leadership team took office, it is actively implementing the “science and technology enterprisesâ€. "Strategic, so that the market competitiveness of corporate products continues to increase, the company thus embarked on the road to rapid development.
The way out lies in structural adjustment. At a recent industry seminar, industry insiders and relevant experts from the China Paper Association Zhang Xinping pointed out that in order to meet the challenge of joining the WTO, China’s paper industry must solve the following outstanding structural contradictions in order to shorten the world’s papermaking industry. Industrial gap:
The first is to resolve the contradiction between the shortage of market aggregate supply and the lack of effective product structural demand. The paper industry in China is difficult to meet the paper market, an important aspect of the performance of high-end paper products, inadequate supply, a large number of low-grade product backlog, excess production.
The second is to solve the problem of unreasonable structure of papermaking raw materials. China's papermaking raw materials are dominated by non-wood fibers, and the ratio of pulp and paper is very small. The proportion of wood pulp is less than 10%. Compared with the pulp and paper making in modern international papermaking industry that uses more than 90%, it is obviously not reasonable.
The third is to solve the current large number of companies and small-scale production structure, affecting China's paper industry to the direction of modernization and the development of economies of scale. China's paper industry has a small-scale structure and therefore has poor scale efficiency and weak competitiveness. In 1997, there were 1,180 papermaking enterprises with annual production capacity of more than 10,000 tons, and the output was 18.58 million tons, accounting for 68% of the total output. Among them, there are more than 130 enterprises with an annual production capacity of over 30,000 tons, and the output is 6 million tons, accounting for 22% of the total output. Only three companies have an annual production capacity of over 200,000 tons, and only 30 companies have an annual production capacity of over 100,000 tons. The average size of existing papermaking enterprises in China is 5,975 tons per year, which is very different from the world average of 40,000 tons.
The fourth is to solve the situation that the existing product structure does not adapt to the changes in the paper consumption market. There are only 600 kinds of paper and board products in China, mainly middle- and low-grade products. Compared with the level of more than 1,000 high-end products in developed countries, there is a big gap between them. With the technological advancement of related industries and the upgrading of products, this The product structure has not adapted to the changes and development of the paper consumer market, and has increased the dependence on imported paper and board.
The fifth is to solve the problem of backward technical equipment. At present, most of the domestic papermaking enterprises' technical equipment is at the level before the 1970s, a small amount is at the level of the 1980s, and individual levels reach the level of the 1990s, which is far from the international level.
The paper industry is hard to hide According to Wang Xiang, deputy director of the China Paper Industry Association, from 1990 to the present, the consumption of paper and paperboard in China is increasing at a rate of 12% per year. In 1997, the per capita paper consumption in the country was only about 25 kilograms, which was lower than the world average level of 55 kilograms per person. It was far lower than the 300 kilograms per capita consumption level in developed countries. By 2010, China's consumption of paper and paperboard will be about 60-70 million tons. Although consumption will double in the next 10 years, the per capita consumption level is still not high. Even considering the population growth factor, the per capita consumption level is only 50 kilograms at that time, which is equivalent to the world consumption level in 1996. In 1997, the domestic output of paper and paperboard was 27.44 million tons, which was lower than the consumption of 5.14 million tons. Production is far from satisfying consumption. It has to rely on a large amount of imported paper and cardboard to fill the gap in this market.
According to the data provided by relevant parties, China’s imported paper and paperboard volume was 3.03 million tons in 1996 and increased to 4.5 million tons in 1997. In 1998, imported paper and paperboard increased sharply to 5.77 million tons, resulting in a decrease in self-sufficiency in domestic paper. Trends, domestic product self-sufficiency rate fell from 89% in 1995 to 84% in 1997. Since entering the 1990s, the domestic paper industry has been protected by a small amount of policies, the import tax rate has been continuously lowered, and foreign investment has also been less restricted. The basic self-sufficiency leading to the papermaking industry from the initial stage of reform and opening up has increasingly become a major importer of foreign exchange. In 1999, a total of 6.913 million tons of paper and paperboard and paper products were imported, and 3.988 million tons of commercial pulp, together with 2.571 million tons of waste paper, the total amount reached 125.227 million tons, more than 5.6 billion US dollars in foreign exchange, while exports are negligible.
China's papermaking industry began to change rapidly in 1996. In terms of geography, at present, among the many papermaking enterprises in China, most companies in the northern provinces suffer from the shortage of raw materials and water resources; the companies in the southeastern coastal provinces are heavily affected by the foreign paper companies; the companies in the central provinces, despite raw materials, Water resources have an advantage, but due to backward technology and equipment, the performance of listed companies in the industry has been declining year after year. In terms of company performance, taking the first half of 1999 as an example, the overall performance of listed companies in the paper industry despite the average main business income reached 164 million yuan, an increase of 18.83% year-on-year, but the average net profit was 157.2274 million yuan, a year-on-year drop of 23.30%. The average earnings per share was RMB 0.091 and the ROE was 3.25%, which was lower than the overall average level of the Shanghai and Shenzhen stock markets.
The three major bottlenecks restricting the paper industry to talk about the reasons for this situation. Wang Xiang thinks there are three main reasons: First, the state has invested very little money in the paper industry. As a result, the papermaking industry in China has relied on the disorderly development of a large number of small and medium-sized enterprises in towns and townships. As a result, the paper industry as a whole has become a non-modern and backward industry with low efficiency and heavy pollution.
The second is that the scale of production is small and it is difficult to resist the impact of large areas. According to China's commitment to accede to the WTO, the import tax rate for foreign paper varieties will be adjusted to 5%-6%, which is bound to cause foreign paper to form a dumping trend in China, resulting in many domestic paper-making companies surrendering the market to foreign companies.
Third, the overall level of equipment and technology is not high, and it is difficult to compete with foreign high-quality paper stocks. Most of the technical equipments of domestic companies were imported from the 1960s and 1970s. Although they reached the international level in the late 1980s after technological transformation, they still lag behind those of advanced large-scale paper machines abroad. What's more, there are too many old equipment in the remaining pulp, electricity, alkali, and water plants, and the production efficiency is not high. At present, the actual labor productivity of foreign newsprint industry is about 700-1000 tons/person-year, while domestic companies are far below this level.
An expert from the China Paper Association stated that taking Yueyang Paper Group Co., Ltd. as an example, the company was founded in 1958 and is located in Chenglingji, where the Yangtze River and Dongting Lake meet, facilitating water and land transportation, abundant freshwater resources, and The abundant reeds and poplar wood raw materials in the Lake District make the papermaking experts at home and abroad known as the golden treasures for the development of the paper industry. In the era of planned economy, Yue Paper had several glorious occasions. However, in the process of transition to the socialist market economy system, Yue Paper once lost the opportunities for development. The enterprises are faced with backward technology, outdated equipment, high product costs, single varieties, and benefits. The dilemma of falling year after year. In the past three years, the company has achieved leaps and bounds. Within four years, the company’s labor productivity has increased nearly threefold, the cost per ton of paper has also dropped by 600 yuan, and the product variety has increased from four to sixteen. In 2001, the total profits and taxes of the company reached 212.35 million yuan, of which the profit was 100.35 million yuan. One of the important reasons why Yue Paper has made such great progress is that it deeply understands that “science and technology are the primary productive forces†in the fierce market competition. After the new leadership team took office, it is actively implementing the “science and technology enterprisesâ€. "Strategic, so that the market competitiveness of corporate products continues to increase, the company thus embarked on the road to rapid development.
The way out lies in structural adjustment. At a recent industry seminar, industry insiders and relevant experts from the China Paper Association Zhang Xinping pointed out that in order to meet the challenge of joining the WTO, China’s paper industry must solve the following outstanding structural contradictions in order to shorten the world’s papermaking industry. Industrial gap:
The first is to resolve the contradiction between the shortage of market aggregate supply and the lack of effective product structural demand. The paper industry in China is difficult to meet the paper market, an important aspect of the performance of high-end paper products, inadequate supply, a large number of low-grade product backlog, excess production.
The second is to solve the problem of unreasonable structure of papermaking raw materials. China's papermaking raw materials are dominated by non-wood fibers, and the ratio of pulp and paper is very small. The proportion of wood pulp is less than 10%. Compared with the pulp and paper making in modern international papermaking industry that uses more than 90%, it is obviously not reasonable.
The third is to solve the current large number of companies and small-scale production structure, affecting China's paper industry to the direction of modernization and the development of economies of scale. China's paper industry has a small-scale structure and therefore has poor scale efficiency and weak competitiveness. In 1997, there were 1,180 papermaking enterprises with annual production capacity of more than 10,000 tons, and the output was 18.58 million tons, accounting for 68% of the total output. Among them, there are more than 130 enterprises with an annual production capacity of over 30,000 tons, and the output is 6 million tons, accounting for 22% of the total output. Only three companies have an annual production capacity of over 200,000 tons, and only 30 companies have an annual production capacity of over 100,000 tons. The average size of existing papermaking enterprises in China is 5,975 tons per year, which is very different from the world average of 40,000 tons.
The fourth is to solve the situation that the existing product structure does not adapt to the changes in the paper consumption market. There are only 600 kinds of paper and board products in China, mainly middle- and low-grade products. Compared with the level of more than 1,000 high-end products in developed countries, there is a big gap between them. With the technological advancement of related industries and the upgrading of products, this The product structure has not adapted to the changes and development of the paper consumer market, and has increased the dependence on imported paper and board.
The fifth is to solve the problem of backward technical equipment. At present, most of the domestic papermaking enterprises' technical equipment is at the level before the 1970s, a small amount is at the level of the 1980s, and individual levels reach the level of the 1990s, which is far from the international level.
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