The paper industry is a traditional industry. In the past, it was generally considered that 80% of paper products were used for production and consumption, and less than 20% for household consumption. With the advent of the Internet economy, this ratio line is becoming blurred. The main characteristics of the paper industry are capital and technology. It is intensive, has modern large-scale production characteristics and is closely related to the development of the national economy. It mainly has the following characteristics:

　　1) Technology-intensive

　　Investment in paper industry is more than 60% investment in equipment, automation is higher than the general manufacturing industry, modern control systems, electrical and mechanical equipment, lubrication systems in the application of papermaking equipment everywhere; a modern large-scale paper machine, the widest width About 10 meters, the speed reaches about 1800 meters per minute, and the experimental paper machine can reach nearly 3,000 meters per minute. It can be imagined that under this speed and width, it is not easy for many rollers to keep the line speed consistent;

　　2) Capital intensive

　　The world's papermaking industry occupies $154 per hundred US dollars of output value, which is similar to metallurgy, petroleum, and chemical industries. China's imported foreign exchange for pulp plates and waste paper is ranked higher than that of other industries after oil and steel. Each appreciation of the renminbi is The papermaking sector on the stock market has long been known for its good news.

　　3) Scale efficiency

　　Papermaking equipment investment is large, fixed costs are high, papermaking companies can only expand their scale, in order to gain the right to speak and take the initiative in market competition and the procurement of various raw materials. Scale expansion is the most effective means to reduce costs and enhance competitiveness.

　　4) Constrained by resources

　　The paper industry belongs to the raw material industry and has a high dependence on fiber sources. Just like our country's steel industry, negotiations with Brazilian or Australian iron ore each year have great impact on it. The world's major pulp and papermaking countries are rich in raw material resources, such as the United States, Canada, Finland and other countries with more than 90% of wood pulp, its forest coverage rate are among the world's forefront. The problem of raw materials is precisely the soft underbelly of the development of papermaking in China, and it is also one of the major problems that restrict the development of papermaking enterprises in the country for quite some time in the future.

　　5) Basic synchronization with the development of the national economy

　　The growth rate of production and consumption of paper products is basically synchronized with the growth rate of the country's GDP. In the period of rapid industrialization, it is higher than GDP growth.

　　In the end, it should be added that the raw materials and final products used in papermaking are renewable, recyclable and reusable, and therefore it is also determined that the paper products meet the requirements of the future world for environmentally friendly products.

　　Therefore, we can see that the papermaking industry is very special. Because its characteristics have brought a lot of adverse effects on the current development, because the paper is closely related to people's lives and is in line with the trend of environmental protection, the future is still very bright.

　　Due to the rapid development of the Internet, especially the mobile Internet, which has brought great impact to the paper industry, the Finnish paper-consulting company Yage Bailey once predicted that the sustained growth of papermaking in China could last until 2020, and actually made paper in 2013 and even 2012. Rapid momentum has led to a stagnation. Looking at the various manufacturing industries in China, most of them have problems with overcapacity. Today it is really not an easy task to find a product that is both prosperous and productive.

　　Paper is far from writing. In addition to using some papers in daily life, paper has traditionally been used as a carrier for the dissemination of culture. It carries rich people's lives, as well as many functions such as entertainment and education. This is so because in the era when there is no Internet or cultural life, people’s hunger for knowledge and information can only be obtained through the paper media, and in the Internet era, the channels for obtaining information are easier and more convenient and faster. Rapidly accelerated, the paper media has also survived its heyday development period and is facing the embarrassment of gradually withdrawing from the media center. Paper-making companies have also encountered challenges of various new issues.

　　It is unlikely that paper-making companies will, as they did in the past, conduct mass production according to market forecasts and respond to market demand with high levels of inventory. Push-based production and management methods are gradually being replaced by market-driven, push-pull production and management methods. Enterprises must always pay attention to changes in market demand and carry out production and business activities in accordance with the needs of customers.

　　Faced with the new situation in the market, in the face of the predicament of weak main business and difficult profit growth, papermaking enterprises will increase internal governance on one hand to reduce costs, while there will be more companies with desires and mergers and reorganizations, and on the other Seek change, test the water business outside the business, in order to expand profitability.

　　For example, Shandong Sun Paper combines the development of the industry, changes the development model, adjusts the development strategy, lengthens the industrial chain, realizes the internationalization of raw materials, the gentrification, differentiation and value maximization of products on the industrial chain, to biomass fibers and biomass The transformation and upgrading of food additives and life-oriented FMCG products will continue to nurture new competitive advantages for enterprises and promote a new leap in enterprise development through upgrading and transformation.

　　In the above example, we have seen that all companies mentioned the extension of the industrial chain. This idea is correct, but the implementation result remains to be seen. To extend the industrial chain, my understanding is to extend the industry chain of paper-making companies. It should be centered on the chain of paper production, rather than the unrelated industrial direction or the blind expansion of products.

　　Let's look at the Metso company's practice. As we all know, Metso used to manufacture paper-based companies. It continued to extend its industrial chain and develop pulping equipment with a full range of automated instrumentation and control systems. Provide a complete pulping and papermaking package service; ANDRITZ mainly produces pulping equipment, and now it is also gradually involved in the production of paper machines; look at many foreign chemical companies and communicate with companies before providing chemicals. Training, providing free mixing and metering equipment, and providing guidance and optimization services on site.

　　Along this line of thinking, can we extend the conclusion that if enterprises with pulp and paper-making business are engaged in intense competition in today's market and products have low profits, they should start with raw materials and strengthen logistics management. Searching for users, making strategic alliances, and jointly developing marketable products; truly standing on the user's point of view, rather than merely lingering on the user's quality services, printed on the shop's promotional slogans; the papermaking equipment manufacturing industry should not Selling the equipment alone will not only provide equipment drawings, provide maintenance and spare parts, but also help papermaking companies to optimize the process and improve the process. According to the needs of the company, it will continuously improve the equipment and make use of the equipment. Perfect combination with process production; Design institutes and scientific research units must also participate in the enterprise when designing and providing service to the enterprise, and work together with the company to perfect its own design and make scientific research tasks that have practical significance for the company; When cultivating students, the school should pay more attention to the cultivation of comprehensive qualities. The use of machinery, electrical, and instrumentation in the real world and the problems that can occur (not to understand the subtle structures and principles) are the most needed talents.

　　The above is what I understand the paper industry should do to extend the industrial chain. Of course, the development of different companies has its long-term strategy. The right and wrong of strategy are sometimes not seen in the short term. But one thing is that no matter how you transform or how to extend the industrial chain, you must understand that companies need to be profitable, and the starting point of profitability is to make customers satisfied and customers want to buy your products.

　　All of these changes have resulted from the fact that our market today has changed and become a buyer's market, and the Internet has eliminated information asymmetry in the past. It is no longer a time when buyers are not sellers.