Papermaking is a traditional capital-intensive manufacturing industry. The quality of its products and its own craftsmanship are the basis for survival. The expansion of production capacity and the increase in market share far higher than competitors are the core driving forces for its rapid development. But today the market, the surrounding environment and consumers have changed. The traditional method of occupying the market with production capacity and market has also encountered more fierce competition. However, for paper itself, resources or papermaking raw materials are always the industry. The most important factor in development.
Only those companies that move upstream to control raw material channels while actively expanding to increase market share and price guidance can achieve profits that exceed the industry average. In addition, paper-making enterprises should also actively extend downstream, discovering and producing products required by the market according to the increasing demands of customers for different papers. The general principle should be to extend from heavy assets to light assets. It is simply to continue to expand the scale of a certain paper grade. Some clues can be seen in comparison with the practices of some foreign-funded enterprises such as Stora Enso and UPM. According to this logic, we are optimistic about the construction of forest land resources in Southeast Asia and Sun Paper, which is actively engaged in differentiated development, by observing domestic paper companies.
