The hottest paper industry will enter a low-speed

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The paper industry will enter a low-speed development stage

in recent years, China's paper industry has experienced zero or even negative output growth, which has never been seen in 30 years. How to grasp the current paper industry situation? How to deal with the current paper industry situation? With these questions, I interviewed Mr. Song Wangqiu, President of Stora Enso China

: after the rapid development in the early stage, the paper industry now has zero growth. What do you think is the reason for zero growth? What is the current state of the industry

Song Wangqiu: China's paper industry has gone through the spring of investment driven rapid growth and entered a winter of zero growth. Jinan experimental machine factory Jinan new era Gold Testing Instrument Co., Ltd. welcomes you, and the industry will enter a new stage of low-speed development

in the month of 2013, the paper production showed negative growth for six consecutive months for the first time in 30 years. The paper industry is highly related to the changes of the national economy, that is, the GDP. The current downturn of the overall economy is bound to be clearly reflected in the paper market. In addition, in the face of the popularity of Internet and the impact of electronic publishing, the growth rate of paper demand has declined, and the demand of individual market segments has even stagnated and shrunk. In addition, some chronic diseases of the industry have not been effectively alleviated. In the past two years, the production capacity was invested too fast, resulting in serious overcapacity. In addition, product homogenization competition is serious, and enterprises are deeply involved in the vortex of price war; The prices of raw and auxiliary materials and energy remain high, the cost of human logistics is rising, the liquidity of the financial market is tight, and the cost of capital is rising, which eventually leads to the decline of the overall profitability of the industry

but on the other hand, we also see that the demand of some market segments still has strong growth, including the market of household paper and packaging paperboard continues to maintain healthy growth

: how do you think of the zero growth of the paper industry

song Wangqiu: the decision issued at the Third Plenary Session of the 18th CPC Central Committee re emphasizes the dominant position of the market. The government will take structural adjustment and institutional innovation as the main means to maintain China's economic stability and enter a long-term medium speed growth

the paper industry should take the relationship between market supply and demand as the key consideration to decide whether to invest or not. Although there is the possibility of zero growth, it also contains development opportunities. Some markets will still grow, but there are risks, so enterprises should be cautious in investment. Some cities and regions in China have entered a middle-income society. To upgrade from a middle-income society to a high-income society, market-oriented reform is the only option. China has a large population and the per capita income level continues to improve. The demographic dividend of medium and high-end products increases. Backward products and products with poor cost performance will gradually be eliminated by the market, providing a very large space for high-performance products. At the same time, the elimination of backward production capacity can further improve the overall environmental protection performance of the industry to a certain extent, which is a good thing for the country and the people

: under the pressure of this winter, what kind of mood and mentality do the employees in Stora Enso China, from top managers to ordinary employees, show

song Wangqiu: the warm spring and cold winter in the market, like the four seasons in nature, are the general laws of things' development. In the cold winter, the competition is the ability of the enterprise to resist the cold. At this time, the market automatically starts the elimination mechanism, and the waves wash away the sand, eliminating the weak and retaining the strong. So at the moment, the most pragmatic approach of enterprises is to pay attention to cost control, strengthen cash flow management, and store their strength for the winter. Stora Enso's paper business, especially in Europe, has also suffered a decline. Before the winter came, we had a crisis demonstration, prepared, and all the staff kept an ordinary mind

: how to regulate industry order and industry competition under zero growth

song Wangqiu: I think in the environment of zero growth, the industry should be optimized, transformed and coordinated. According to the survey data, the paper market in Asia will grow by 2015, and this growing market is mainly in China. We should also consider how to standardize the market for customers to buy a reassuring product, restrict and eliminate policies, and achieve the expected goals

the new situation and way out also give the industry new hope. Consumer paper has the highest gross profit margin and the largest performance flexibility. The surge in the infant and adult diaper Market in recent years is a clear example. Most paper-making enterprises have entered the field of household paper, which has a large profit space, resulting in the rapid growth of production capacity in this field. The consumption demand of household paper in China will be diversified and transition to medium and high-end products. Some enterprises are also involved in xylitol, dairy and coal industries, seeking transformation. In order to better resist market risks, enterprises have increasingly diversified their product structure

in the face of the arrival of the new cycle of global, Chinese and industrial development, the industrial pattern will be greatly adjusted and changed, which will put forward higher requirements for the strategic positioning, management level and innovation ability of traditional enterprises. From competition to cooperation among enterprises, the competitive relationship between manufacturers has changed into joint relationship, and even global cooperation

: what are the different management methods for storan's advantageous business and loss business

song Wangqiu: since 2008, Stora Enso's printing media market in Europe has shrunk, so the group has adopted a series of structural adjustments. Stora Enso invested 0.7% of the company's revenue (EUR 81million) in research and development in 2012, and adjusted its business division in 2013, focusing on renewable packaging and biomass materials. For the business with shrinking overall market, the focus of storan's asking price in the recent stage is to improve cost competitiveness, moderately reduce production capacity and peel off non-performing assets

with the continuous change of consumption awareness and the improvement of economic structure demand, renewable and green packaging has become the future development direction. Stora Enso is trying to use products based on renewable materials to enter new market segments. For example, our efficient and renewable packaging materials solutions for replacing plastic or aluminum packaging, and our innovative wood based construction solutions. All paper, packaging and solid wood products of Stora Enso can be safely recycled. They are made of renewable raw materials and do not contain harmful heavy metals or other harmful substances. Stora Enso has always actively promoted and participated in the recycling program, becoming one of the largest users of recycled paper recycling in Europe. Compared with its competitors, Stora Enso focuses on areas with higher requirements for product technology and quality, such as the packaging of liquid foods, such as milk and beverages that people are exposed to every day

: under the winter environment of the paper industry, will storan and other internationally renowned enterprises adjust their strategies and management? How to cultivate enterprise internal skills

song Wangqiu: Stora Enso has been developing in strategy and management, which may be damaged; Show continuous innovation. One is to cultivate internal skills in products and services. For example, our customer commitment project for customers in the packaging field has created marketing and communication channels and a library of marketing tools to create competitive advantages in Stora Enso's renewable packaging field. We hope to provide unique customer experience through communication and action, enhance customers' rational and emotional viscosity to us, and improve customers' preferences and loyalty with clear market positioning, so as to bring value to them and achieve the purpose of differentiated competition

in addition, strengthen the internal talent training of the company. We have also made partial readjustments in terms of organizational structure, personnel numbers, job design, staff training, etc., to adapt to the changes in the current and future business situation

: what do you think is the gap between domestic enterprises and foreign enterprises? How to narrow the gap with world-class enterprises

Song Wangqiu: with the rapid development of China's economy, China's paper production capacity has become the first in the world in 2008. The production capacity of the top 10 paper-making enterprises accounts for about 30% of the total production capacity, and domestic first-class enterprises such as Shandong Chenming, Nine Dragons Paper, Huatai Paper and Taiyang paper have been born. From technology to management, the gap between domestic enterprises and world-class enterprises is also getting smaller and smaller, and the catch-up speed is very fast. Moreover, a lot of human and material resources have been invested in environmental protection technology and sustainable development of resources

however, we can see that there are still a large number of small-scale paper enterprises in China, which need better technology and ideas to deal with the challenges faced by environmental protection

: as a long-lived enterprise with a history of more than 700 years, storan has experienced more cold winters than other enterprises. Is there any experience and secret of winter that you can share with us

Song Wangqiu: continuous environmental examination is an important lesson for the long-term development of an enterprise. More than 700 years ago, stora started by operating copper resources. Over time, enterprises have constantly adjusted their business development priorities. Now we position our business as the creator of renewable raw materials to meet the global challenge of climate change faced by mankind and the earth. Enterprise managers should always use strategic vision and thinking to penetrate and analyze the environment, pursue advantages and avoid disadvantages, follow the trend, and look for opportunities for development and breakthrough in the crisis

we see that the growth of renewable packaging market will be very attractive. In the next ten years, it is expected that the demand for such products in the Chinese market will increase at an annual rate of 10%. Stora Enso's strategy is to invest and set up factories in China, take key industries such as liquid food packaging and consumer electronics packaging as a breakthrough, and provide products by extending the upstream and downstream industrial chain of renewable packaging. 3. It has good electrical insulation; Services. The Guangxi project plans to invest in establishing a civilian cardboard factory in China, which supports our transformation strategy

in addition, we have always believed that we are doing things that benefit mankind and treat the earth well. We not only pursue commercial success, but also hope to create new social and commercial values through our products, operations and services, and improve the living conditions and viability of our surrounding communities and the public by sharing the new values created

profile: Mr. Song Wangqiu, Finnish, is currently the president of Stora Enso in China. It has been 19 years since he joined Stora Enso group in 1994. During this period, he has been engaged in market analysis, sales operation and enterprise management, and has rich experience in the company's products, project operation and enterprise management. Mr. Song Wangqiu was appointed by the Finnish head office to explore the Chinese market in 2000. He has successively served as the marketing director of Suzhou Zixing Paper Co., Ltd. of Stora Enso, the vice president of market and business development in Asia Pacific region of Stora Enso, and the general manager of sales company in Greater China. Since 2006, Mr. Song Wangqiu has been the president of Stora Enso in China

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