What is the gap between Xiaolong and International Paper?

Source: China Paper Network

Since the peak of paper prices in 2017, the profitability of papermaking leading companies has remained at a high level. According to the latest 2018 financial report released by Nine Dragons Paper, the revenue of 57.282 billion yuan and the net profit of 7.861 billion yuan have created the best data in its history.

However, the paradox is that even in such financial data, the major domestic papermaking leaders still have difficulty preventing the stock price from going down. The so-called stone of other mountains can be used to attack jade, horizontally contrasting the leading industry in China and the United States, drawing on the experience of leading American development, perhaps inspiring to all domestic packaging people.

According to the latest global paper industry list published by the US paper360 magazine, the international paper industry's total production capacity in 2017 is 21.307 million tons (industrial packaging capacity of 13.9 million tons, cellulose fiber production capacity of 4 million tons, printing paper production capacity). 4 million tons), ranking first; Nine Dragons Paper followed closely, ranking second with 13 million tons of capacity.

However, in the ranking based on the company's operating income, Nine Dragons Paper has demonstrated its strength in the world's second capacity. In 2017, international paper revenue was 21.743 billion US dollars, ranking first, while Xiaolong was 5.793 billion US dollars, ranking 14th in the paper industry. It is worth mentioning that Nine Dragons' paper revenue ranking has increased by three places compared to 2016.

In terms of revenue capacity, the leaders of China's packaging paper industry are far behind the international paper industry.

From another perspective, soft power. In December 2018, the World Brand Lab released the "Top 20 Brands of the World's Top 20" list, ranking 370th in the international paper industry. It is also the only listed company in the packaging paper industry's list of the top 500 brands. In terms of international influence, whether it is Xiaolong or Lianyungang and Shanying's packaging leader, they are just getting started.

Dig deeper the gap between Chinese and American leading packaging paper companies.

As of the date of issue, the international paper market value was 17.56 billion US dollars, and the market value of Xiaolong was 33.935 billion Hong Kong (Lianwen 28.747 billion Hong Kong, Shanying 14.44 billion yuan).

Nine Dragons Paper is one of the world's largest manufacturers of boxboard base paper, mainly producing cardboard, high-strength corrugated core paper, and coated gray-backed whiteboard paper. The international paper business includes uncoated paper, industrial packaging, consumer packaging and xpedx in the North American distribution business.

Comparing the two, the international paper industry has deepened in the field segmentation and downstream of the industry. As of the end of 2017, the company has a total of 172 corrugated box factories and 16 paper mills (including kraft paper) in the United States, and has 41 carton factories and 6 paper factories overseas.

In the global layout, the company is headquartered in Memphis, Tennessee, with operations in North America, Latin America, Europe including Russia, Asia and North Africa. It has approximately 59,500 employees in 24 countries around the world and has customers all over the world. Although Xiaolong has accelerated the pace of overseas expansion, and even has already killed the international paper industry, the main market is still mainly domestic and Southeast Asia.

The latest news is that the overseas expansion of Nine Dragons Paper has begun to feed back the parent company, and its subsidiary NDPaper has already sold bleached kraftliner and corrugated paper in the US market.

Mining the gap between Xiaolong and international paper industry

Since the United States began to implement the sewage permit system in 1970, the US paper and paperboard industry has become increasingly concentrated under the background of strict environmental protection. At present, there are only less than 200 paper mills. China is currently in a similar phase to the development of the United States in the mid to late 20th century. China's small and medium-sized production capacity is too large, and the concentration of paper species is significantly different.

Taking box corrugment as an example, the international paper box corrugated production accounts for 75% of the national total, while the top three corrugated paper-related leading production in China accounted for only 34%. The high occupancy rate is a stable gross profit margin. Compared with the domestic leading Liwen, Xiaolong and Shanying, the international paper industry's gross profit margin is maintained at 25%-35%, which is more stable than the domestic leader. .

International Paper adheres to the integrated business strategy of the paper packaging industry chain. As of the end of 2017, the company has a total of 172 corrugated carton factories in the United States and 41 carton factories overseas. 80% of the cardboard is processed into cartons in the country, and the rest is transported to foreign countries for shipping. The ability of Xiaolong to extend the layout in the downstream is a weak item. Xiaolong Intelligent Packaging Co., Ltd. is only a great resistance to the second-level factory when it tries to sell cardboard. As the leader of the domestic industry, the influence of Xiaolong is not small, and the halo effect caused by it is easy to trigger the stress psychology of the paper packaging industry.

Under such circumstances, Xiaolong directly crossed the vertical extension to the downstream, and obtained an attempt to stabilize the gross profit margin through the integrated layout of the supporting industrial chain. Instead, it will carry out horizontal integration on its behalf, and expand its business scope by expanding overseas.

In August 2017, 400,000 tons of packaging paper project in Vietnam was completed and put into production;

In May 2018, the subsidiary of Nine Dragons Paper (Holdings) Co., Ltd. invested 175 million US dollars to acquire two pulp and paper mills in the United States, adding nearly 900,000 tons of papermaking capacity;

In July 2018, a new 1.2 million tons of papermaking project was planned in Vietnam;

In August 2018, a 240,000-ton pulp project was acquired in West Virginia;

In October 2018, a 600,000-ton pulp project was acquired/expanded in Maine, USA.

However, the lack of an integrated layout has also hampered the global layout of Snapdragon's production and transportation, as well as the upgraded overall solution to provide high value-added services. In terms of business layout, Shanying Paper, which is most similar to International Paper, relies on the upstream and downstream industry chain to achieve full support and horizontal expansion for capacity expansion, but it is relatively small in volume (2017 production of 3.576 million) Tons), it is difficult to form a global layout similar to the production and transportation of international paper in a short period of time, and to reduce logistics costs.

Editor in charge: Liu Xiongliang

This article is posted on the website for the purpose of transmitting more information and does not imply endorsement of its views or confirmation of its description.

Article source address: http://

Working Desk

Perfectly suited for smaller spaces like studio apartments and office, our Home Office Desk can quite easily be tucked into a corner. Though small in size, this piece offers some storage space with drawers. Our table is designed to give you plenty of leg room but also doesn't take up too much space in your home.

Working Desk,Working Table,Standing Work Station,Adjustable Work Table

Baklam , https://www.baklamjm.com