Chapter 606: The Ambition of Kylin Paper Industry Group

There are many types of paper, which are basically divided into: packaging paper, printing paper, industrial paper, office and cultural paper, household paper, etc.

The headquarters of Kylin Paper Products Industry Group is located in Yichang not because of the obvious location advantages, but because of the needs of industrial layout, which was specially arranged by Ye Zishu.

Although the headquarters is here, not all of its industries are here, but the production bases here are more complete than other places.

Since the industry and commerce here are much behind compared to the coastal areas, the production scale of packaging paper here is not large, and it mainly supplies the packaging paper demand of the three provinces of Hunan, Jiangxi and Hubei.

The main paper products produced here are household paper, such as toilet paper, facial tissue, napkins, diapers, sanitary napkins, wet wipes, etc.

Household paper is mainly produced here, and the products can be conveniently transported throughout the Yangtze River Basin, and the provinces along the route can be reached in a short time, which can save a lot of transportation costs.

Because the household paper market is relatively evenly distributed, while the distribution of other paper product markets is uneven, we can only follow the market. Where the market is, factories will be built nearby.

At present, there are more than 150 types of paper under the Qilin Paper Industry Group. All of these paper types have production plants in Yichang. The production scale of these papers alone is very large.

These are actually nothing. Kylin Paper Industry Group has positioned Yichang as the main pulp supplier in the southern region, and the pulp it manufactures will supply the entire southern region.

Although the current annual output of pulp here is 10 million tons, according to their medium and long-term goals, the pulp production scale here will eventually reach 50 million tons.

If calculated according to the average pulp price of 5,000 yuan per ton, the output value of pulp alone here is as high as 250 billion yuan, which is considered a very high industrial scale in any urban area.

The traditional pulp production process is very polluting. It stands to reason that it is best not to place it in the middle and upper reaches of the Yangtze River system. However, the pulp process of Kirin Paper Products Industry Group is very different from the traditional one.

They are made into plant fibers through a complex process of carbon inorganic substances. Since this process is completely artificially controllable, lignin and hemicellulose in natural plant fiber raw materials can be completely eliminated.

It also does not use too many chemicals to bleach natural raw materials. Although it cannot be said that there are no pollutants at all, they are all environmentally friendly and recycled.

It's like they walked in these factory areas without smelling any peculiar smell. There are many modern factories dotted around, and the supporting facilities are very complete.

The greening work of the factory is done very well, and it looks like a garden-like factory.

At first, the delegation thought that it was only related to environmental protection treatment, but when they entered the factory, they found that there was no peculiar smell on the entire production line, and the production method was completely different from the traditional method.

The first half of the pulping process here is actually not much different from the industrialized grain production. It converts inorganic matter into organic matter, but turns the original amino acid into cellulose.

Cellulose is a polysaccharide, but the human body lacks enzymes to digest cellulose, otherwise the human body can satisfy hunger by eating wood, and the subsequent process is to make cellulose into various wood fibers.

Due to the high purity of the production process, there is no separation, washing, bleaching and other links in the traditional pulp process, and the whole process is airtight production, workers only need to operate instruments and meters on site.

In fact, the entire production line has been semi-automated, and it can be fully automated with a little improvement, as the delegation could see.

Therefore, Ye Zishu is greatly appreciated. Although full automation can save labor costs, it is not a good thing for the country. Employment is always the top priority for the government.

The pulp produced here will be transported along the southern water system to various paper production factories in the south for reprocessing, and the finished products will be supplied to the market nearby.

At present, the number of production personnel here is 50,000, and the efficiency is still more than double that of domestic counterparts, and there are nearly 10,000 of them who are redundant personnel in preparation for the expansion of production.

There is also a pulp production base like Yichang in Tianjin in the north, which mainly supplies the northern market. The final scale will be much smaller than here, and the final annual output will not exceed 40 million tons.

He estimated that even if the domestic economy develops rapidly, it will be difficult to fully digest the production capacity of 90 million tons of pulp in the short term. This is a conclusion drawn from previous life experience.

Therefore, these production capacities are gradually expanding. For example, the current production capacity of the Tianjin pulp production base is only 5 million tons, and the total production capacity of the two pulp production bases is only 15 million tons.

However, my country's actual pulp demand should be around 30 million tons, which is the result of rapid domestic economic growth and rising demand for paper products in the past two years.

Due to the huge cost advantage and technological advantage of Kirin Paper Products Industry Group, it will sooner or later occupy the national market, and other paper products companies simply cannot compete with them.

Now it is just to give them some time to transform. In fact, Kirin Paper Industry Group has sent relevant information to nearly 5,000 domestic peer companies to tell them the actual situation here.

As for whether they believe it or not, Kylin Paper Products Industry Group doesn't care, anyway, it has already been said, and it can be regarded as benevolent. If they don't believe it, then see the truth in the market.

It's just that even if they transform, they may not necessarily succeed. Kirin Paper Products Industry Group also proposed its own solution, which is to acquire these companies and then reorganize them.

In fact, Kirin Paper Products Industry Group does not want to acquire these relatively backward enterprises. First, these enterprises are small in scale, and the number of enterprises with an annual production capacity of 200,000 tons is not many, only two.

Most of the enterprises actually have an annual production capacity of only about 10,000 tons, and they are veritable small and medium-sized workshops. Such enterprises do not actually have much competitiveness.

After the acquisition of such an enterprise, if it is not reorganized, not only the management cost of Kirin Paper Products Industry Group will be wasted, but also their environmental protection cost will be wasted.

At present, there are about 130,000 workers engaged in the production of paper products across the country, which does not include the employees of Qilin Paper Products Industry Group.

They feel that they have the ability to take over these domestic enterprises. First, they have sufficient funds for acquisition and integration. Second, they are confident in maintaining such a large number of employees in the domestic market.

At present, some enterprises have come to inspect the production base of Kirin Paper Products Industry Group. Since they have received their news, it would be a bit incompetent to just take a look.

Those who came here basically left disheartened after learning about their paper production technology and going through on-site inspections.

There are even some bosses who can make decisions on the spot, and immediately start negotiating with them on the acquisition. For this reason, they did not bully the small, and evaluated them based on their assets.

It's not that they are generous, but that they want to set a benchmark so that more peers can see their sincerity, so that subsequent acquisitions will become easier.

Once they acquire most of the large-scale domestic enterprises, they will be able to dominate the domestic paper market faster, and at the same time quickly accept their market channels, which will benefit them a lot.

Sometimes a problem that can be solved by spending money is not a problem. So far, they have reached acquisition agreements with more than 100 companies. The acquisition funds are actually not much, and the total cost is less than 1 billion yuan.

According to Kirin Paper Industry Group, before the end of the year, they are expected to complete the acquisition of more than 2,000 domestic peer companies, and strive to completely wipe out competitors by the end of next year.

These are only measures taken for the domestic market. What they really want to win is the international market, and they are also confident of occupying an absolute dominant position in the international paper trade.

Since the total budget of Kirin Industrial Group is only 200 billion yuan this year, the amount of funds allocated to Kirin Paper Industry Group is not too much, only less than 20 billion yuan.

Therefore, we can only deal with the domestic situation first. From next year, they will compete directly with the international paper giants. In comparison, the international market is much broader.

At present, they have selected sites in the eastern coastal area to build an industrial park integrating pulp and various paper products. The estimated investment scale is 100 billion yuan.

After completion, the annual production of pulp is 50 million tons, accounting for about 25% of the total global pulp production. If all of them are digested, it means that their finished products will occupy at least 25% of the global market.

Although Ye Shu thought their plan was a bit radical, they didn't stop them. Let them try it for now, hoping they can do it.

In the early stage, it is entirely possible to adopt a low-price competition strategy. They have a cost advantage, even if they are much lower than the other party, they can still make a lot of profits.

At the same time, they also have advantages in manufacturing technology. No matter what kind of paper products they are, they are much better than their competitors. More importantly, their products are more environmentally friendly, which is also one of their advantages.

In fact, they can easily make money simply by selling pulp, and it is easier to open up the international market, and there are fewer things to worry about, because they only need to contact paper manufacturers.

It is actually easier to cooperate with enterprises. You only need to pass the quality standard and lower the price to win the favor of enterprise customers, and there is no twists and turns like facing consumers directly.

But in this way, they will lose a lot of initiative. Unless they are always cheaper than others, as long as the price rises, the cooperation may be terminated.

As an enterprise with absolute technological advantages, it is not impossible to produce better quality finished products, and there is no reason for others to restrain itself.

Therefore, their goal is not to become a supplier of raw materials, but to become an absolute monopoly in the global paper industry, and it will not hesitate to spend more energy and money for this.

This goal is a bit domineering like their boss. Although it is impossible to achieve it overnight, one must have a dream. If it is realized, it will be the absolute overlord of the industry.

At present, the output value of the global paper industry has reached about 4.5 trillion yuan, which is a huge cake. As an enterprise with a complete industrial chain, if it can eat 80% of the share, it will be 3.5 trillion yuan.

In Ye Zishu's view, only such an industrial scale can match the advanced papermaking technology owned by Kylin Paper Industry Group, so from the bottom of his heart, he actually supports their ambitious plan.

At present, the average price of pulp is about 5890 yuan per ton. Kirin Paper Industry Group intends to compete in the international market at an average price of 5000 yuan per ton to see how it works.

If the effect is not very satisfactory, then directly reduce the price to 4,000 yuan per ton, if not, it can be further lowered to 3,000 yuan per ton.

This price can basically make global pulp production companies unprofitable, and the market price will be reduced by nearly half when reflected in the end products. No matter which company it is, it cannot stand such price competition.

Wait until the major competitors can't stand it, and then propose an acquisition to take over the other party's market. Such a routine is very common in the global market competition.

The delegation spent a whole day to go through the main industrial production process and understand the technical strength of Qilin Paper Industry Group.

At this point, the entire investigation process is considered to be over. At the conclusion meeting of the investigation, the conclusion given by the investigation team is that my country's agriculture, animal husbandry and forestry will undergo tremendous changes, and the source of all this is from the Kirin Industrial Group.