After Langzhu's boss finished talking, Fan Wuyi put down the phone. It's about raising issues inside.

Papermaking is an asset-heavy industry. For every additional 10,000 tons of pulp production capacity, approximately 100 million yuan will be invested. For every newly built whiteboard paper with a capacity of 10,000 tons, the investment amount will also be around 40 million.

Nowadays, the heavy pollution problem of small paper-making enterprises has caused the government to feel very headache. In order to increase the industry entry threshold and reduce the number of approvals for paper-making enterprises by local governments, the State Council has also issued a temporary regulation on the paper industry. The initial scale of the new project, and according to boss Zhu. The State Council intends to include imported paper cutters, waste paper shredders, pulp mills, paper machines and other equipment as non-tax-exempt items in the "Catalogue of Imported Commodities Not Exempted for Domestic Investment Projects".

Fan is naturally very clear that once this policy is implemented, it will also have a great impact on all paper companies. However, according to Boss Zhu, China will allow enterprises to deduct the value-added tax contained in newly purchased equipment, which is also a major turning point for the paper and paper products industry, which has huge investments.

It’s hard to tell if one window is closed and another door is opened. But one thing can be said that the domestic paper industry will face a very big change. The survival problem of small and medium-sized paper companies will be solved in a short time. What they are facing is two paths, one is letting go. The other is to be acquired by a large paper-making company and take the road of joint development. Apart from that, there is no other way.

Not long after, Davis, the person in charge of Daggerhai headquarters, had a video call with Fan Wuyi. Reported to Fan Wuyao on the results of recent investigations in the domestic paper products market.

Most of the products in the paper industry are sold domestically. Compared with export-oriented industries, the impact of the external economic situation on the paper industry is relatively small. However, in the industrial chain, because the downstream customers of paper products are greatly affected by the financial turmoil, after the financial turmoil in Southeast Asia, domestic orders have also decreased, and companies have greatly reduced production. Affected by this, the sales of paper products have been greatly affected. The big shock has caused overcapacity.

"The financial turmoil has caused a huge impact on export-oriented enterprises, and their export goods have dropped significantly. These enterprises are the most important customers for digesting paper products. Because of their compression of production, the paper products industry market has shrunk. This is unavoidable. Yes, because the paper product industry is only one link in the entire industrial chain, and the economic environment has problems, individual companies or industries will definitely be affected.” Davis analyzed the paper product industry’s overcapacity in this way.

In the past one or two years, the domestic paper and paper products industry has been in a period of rapid expansion. But in the process of rapid expansion, many companies have encountered financial constraints.

Davis told Fan Wuyao, “Some small and medium-sized enterprises in the industry have encountered financing difficulties, and even some large-scale enterprises have also encountered the problem of tight capital chains, which has become an important bottleneck affecting the development of domestic paper companies. ."

At present, the fund settlement methods of most domestic paper companies are lagging behind. Suppliers generally have to wait until customers sell their products before they can get the payment. This process usually takes three months, and some even half a year.

At present, affected by the financial crisis in Southeast Asia, customers have problems in sales, causing manufacturers and suppliers to be unable to get the payment on time or even get the payment, resulting in a shortage of funds.

In the current economic situation, perhaps throttling will be a measure taken by many companies, but Davis believes that the paper industry can also save greater costs through effective management and operation. He said that the era when cash is king has come, and companies must play money in their hands so that they don't panic.

"These are not big problems for us, but since we want to enter this industry, we must have rules and regulations and keep our minds free. What advice do you have about this?" Fan Wuyao is naturally not worried about funds, but Since you want to enter the market, you must have the patience to follow the laws of the industry. It is also important to adapt to the environment and follow the trend. Just knowing that it is wrong to throw money into it, at least let the enterprise itself be able to run effortlessly.

Davis said to Fan Wuyao, "In fact, it is very simple. I have carefully studied the problem. First, companies should reduce unnecessary procurement expenses. Try to reduce management costs and reduce corporate daily expenses. At present, we use The global network office management system of China can solve this problem to a large extent, and it has inherent advantages that they can’t compare. Second, the paper industry must hug its suppliers and overcome difficulties with downstream customers. For example, It turned out that the settlement period for both parties was two catties. Months, now it is shortened to one month, which can also reduce the pressure on each other’s funds."

"If you do this, the supplier's pressure will increase, and it is easy to cause them to respond negatively." Fan Wuyao hesitated.

Davis replied, "Although so. But they have no other choice."

Papermaking is a capital-intensive industry with significant economies of scale. In terms of funding. One hundred yuan of output value of the paper industry occupies fixed assets equivalent to petrochemical, metallurgical and other industries. Especially for high-end product production lines, about 100 million yuan will be invested for every 10,000 ton of high-end paper, and 150 to 200 million yuan will be needed for every 10,000 ton of high-end chemical pulp. Paper industry projects often cost several hundred million yuan. .

In terms of scale, the average size of world pulp mills last year was 210,000 tons, of which 380,000 tons were in North America, 330,000 tons in Japan, Indonesia, and South Korea in Asia, and 200,000 tons in Western Europe. The average size of world paper mills About 80,000 tons, including 180,000 tons in North America, and 80,000 tons in Indonesia, South Korea and Japan in Western Europe and Asia.

As far as a single production line is concerned, the size of pulp mills currently producing wood pulp in the world is generally considered to be more than 300,000 tons, and the output of paperboard and paper machines is generally considered to be more than 150,000 tons.

The capital-intensive and economies of scale in the paper industry determine the special significance of capital for the development of paper-making enterprises. The self-accumulation of production and operation obviously cannot meet the needs of rapid expansion of enterprises. What is more important or more effective is through capital. Operation is realized by means of external transactions.

That’s why Davis said that the supplier has no other choice. After all, the domestic market is critical to the increasing demand for paper products. However, there are only a few domestic paper companies, especially large paper companies, that can produce some high-end products. Paper companies are even rarer, so this is a seller's market.

There is no other reason, because there is too much investment in high-end paper, and the barriers to entry are very high. The average enterprise can't afford to be private. Even if you raise money, you have to consider the pressure of funds. There are still these things around Jiabu. Foreign-funded enterprises that are eyeing their eyes. They play a price war for you with their old books, and they can immediately drag you down. When they pull the price back later, there are no opponents anymore.

However, compared with the high investment, the profit margin of some projects has declined. Take coated paper as an example. A few years ago, the price was as high as nearly 10,000 yuan, but now the average price in the market is about 9,000 yuan. Although there are changes in raw material costs, it is an indisputable fact that the profit of coated paper products has become thinner.

The reason is that in the past planned economy era, due to capital constraints and cumbersome national approval procedures, the speed of project launching was very slow. For example, a coated paper production company with a production capacity of only 10,000 tons could occupy the industry leader. In this case, if a paper-making company produces high-end new products that are popular in the market, few competitors can keep up in the short term, and this company can acquire it for a longer period of time. High profits.

However, with the development of the domestic economy. In recent years, investment entities have diversified and approval authority has expanded. When a high-end new product with higher profitability appears on the market, other companies and investors will quickly follow up, and the new project will soon be completed and put into production. As a result, the period for this new product to be in short supply and to obtain high profits is greatly shortened, and the actual return on investment of the project may be lower than expected.

It is the nature of capital to chase profits. When it is found that huge investment fails to achieve the expected results, will capital continue to be heavily invested in the paper industry? The answer is of course no. Therefore, in addition to a few domestic foreign-funded paper companies, such as Jin Guangyang, which have already occupied an advantage, there have been no foreign-funded enterprises involved in this industry recently. As for domestic new projects, they are just some private enterprises. Of small and medium-sized paper companies.

After reporting to Fan Wuyao for a while, Davis said to him, “In fact, if it were not for the internal information provided by the boss, that we might replace Jin Guangyang and other foreign-funded enterprises in China, I would not In favor of investing in the paper products industry."

"Why?" Fan Wubing asked with some curiosity. Davis didn't oppose his opinions much.

"Because of the arrival of the information age, it has had a huge impact on the traditional paper industry." Davis replied.

From the functional point of view, paper can be divided into three major categories: industrial packaging paper, household paper, newspapers, writing and printing paper, and cultural paper.

The main function of cultural paper is to serve as a carrier for information recording. After the mid-nineties. With the development of the Internet and information technology, some people have predicted that the demand for paper will decrease due to this impact, but the actual situation in the past two years is that the consumption of cultural paper has not decreased, but has increased at a faster rate.

Analyzing the reason for this phenomenon is that with the application of network technology, the amount of information that people obtain has also increased sharply. Even if the information that needs to be printed out is only a small part of the network information or e-mail, the actual paper use The amount is also relatively large.

But just when people think that previous judgments were wrong, things are changing.

With the rapid development of electronic information technology, especially the development of information storage technology and information browsing terminal equipment, cultural paper as a carrier of information recording has been subject to an alternative impact.

For example, the emergence and rapid development of mobile hard drives and concave devices have made paperless office a reality. Especially interconnection. Liao’s broadband and optical cables can already be connected to ordinary people’s homes, and wireless Internet access and mobile Internet access are becoming more and more popular. People communicate, communicate and learn through the Internet. It has fallen sharply and is becoming a part of people’s daily lives.

"Your consideration is not wrong, but you have to look at other aspects." Fan Wubing expressed his understanding of Davis's concerns. At the same time, he also said, "Although office paper is being cut, there are other aspects. The use of paper is increasing, and one is going down. The amount of paper products used is still increasing rapidly in terms of total amount. We don’t have to worry about the shrinking sales market."

In fact, due to the development of new technologies, examples of traditional products being impacted have occurred. For example, in the early 1990s, the state invested a huge amount of money to establish a Dalian Hualu video recorder production plant, but when the project was just completed, it was hit by the newly emerging Beiji in the market, and the company was sluggish~lightnovelpub.net~ for the paper industry. It is said that industrial paper and household paper will have greater consumer demand with the development of society, but the consumption of certain types of cultural paper may be affected or even severely shrunk. The development of electronic technology has had a huge impact on the substitution of some cultural papers, and there may be a revolutionary impact similar to D completely replacing video recorders. This is a problem that paper companies must consider when investing in projects facing the future, and it also affects the current situation. There is a shadow of the future of cultural paper production enterprises.

But in general, as long as you choose the right investment direction, you can avoid this catastrophe. Trouble, develop yourself effectively.

"However, there is one thing that needs our special attention. Fan Wuyao touched his chin and said to Davis in the video. "Today's Internet conflicts with traditional media are very large. It can be expected that the circulation of newspapers will be in the future. It will be greatly affected, but the demand for books will increase, especially the number of textbooks will increase to a large extent. This should also be a direction we need to pay attention to.

"The boss is really far-sighted and admirable." Davis admired sincerely. In his eyes, or in his experience, Fan Wubing has never made any mistakes in these general directions. This time the inference of the paper products market is also in line with the results of my own survey in the last few days.

However, his own conclusions are still not as accurate and clear as the boss, it can only be said to be a slightly exposed trend.

However, no matter what, he should strictly follow the strategy proposed by the boss. This is also the magic weapon for Fan Investment Group to grow into a behemoth in such a short period of time. There is no doubt about it.