Small and Medium-sized Paper Mills Buy Waste Paper from Different Provinces for Energy Conservation and Cost Reduction


Small and Medium-sized Paper Mills Buy Waste Paper from Different Provinces for Energy Conservation and Cost Reduction

With the decline of market demand,the decrease of base paper orders and the high cost of waste paper purchasing,the profits of numerous small and medium-sized paper mills have increased negatively.In the first five months of this year,the net profit loss of Xiangling Paper Products Company in Yichang City,Hubei Province amounted to more than 5 million yuan.

Faced with such a situation,what should small and medium-sized paper mills do?Xiangling Paper Products Company gave the answer:buy waste paper across provinces,save energy and reduce costs.

Profit is thinner than paper

Sino-US trade friction has a real impact on the fate of enterprises.According to"My Yiling"report,Xiangling Paper Products Company was affected by this.The export of downstream packaging factories decreased.Although the products were sold now,the selling price per ton of paper fell by 400 to 500 yuan compared with the same period last year.

Zhang Biquan,Secretary of the board of directors of Xiangling Paper Products Company,revealed:"In the first five months of this year,the sales of enterprises were more than 60,000 tons,more than 2400 tons over the same period of last year.Although the profits are still as thin as paper,considering the negative impact of the Sino-US trade war and other complex business environment,the enterprises can perform this way,the employees are still very gratified."

Buying waste paper across provinces

It is precisely because of the cliff-like decline in paper prices that in the first five months of this year,Xiangling Paper Products Company lost more than 5 million net profits.For small and medium-sized paper mills,this loss is not small.For this reason,Xiangling Paper Products Company has come up with many"tricks"to change its strain,one of which is to buy waste paper across provinces.

As everyone in the industry knows,the cost of waste paper accounts for more than 70%of the total cost of paper mills.Many small and medium-sized paper mills are in a dilemma because of their poor sales and low cost.Therefore,the vision of Xiangling Paper Products Company is no longer limited to the waste paper market in the province,but to buy waste paper from outside the province.

Chen Xingjun,head of marketing department of Xiangling Paper Products Company,introduced that the main reason why enterprises want to go out and expand the raw material procurement market is the fierce price competition in the region.And the peripheral markets,such as Chongqing,Sichuan,Henan and Hebei,have abundant raw materials,low prices and good quality.Going out can expand the peripheral markets to meet production needs.

Energy Saving and Cost Reduction

In addition,under the premise of ensuring the quality,Xiangling Paper Products Co.,Ltd.has made an article on improving the marginal output and reducing the marginal cost.According to Xiong Zhigang,the Minister of production technology,the price is determined by the market.The only thing we can do is to reduce the cost,introduce new equipment and processes through technological innovation and research and development,so as to improve product quality and reduce product cost.

Take corrugated paper production line as an example.In order to achieve the current level of energy saving,consumption reduction and production efficiency,at the beginning of the year,the enterprise invested more than 5 million yuan,carried out"major operations"on it,and embedded new technology and equipment such as turbofan,at the same time,introduced advanced waste recycling devices to achieve recycling of industrial waste residues such as fine fibers.

It is understood that the technology reform alone saves a lot of costs for Xiangling Paper Products Company.Xiong Zhigang,the Minister of production technology,revealed:"For example,through the application of turbine fans,29 kilowatt-hour electricity was saved per ton of paper,and 1.6 million kilowatt-hour electricity was saved from January to May.Cumulative electricity savings of more than 1.5 million yuan.

In fact,the plight of Xiangling Paper Products Company is a microcosm of the current situation of the paper industry.Compared with large-scale paper mills,small and medium-sized paper mills are more likely to experience the difficult situation of high cost,difficult sales and low profits,so reducing costs has become an important thing.

Downstream packaging enterprises,especially cardboard factories,adopt the same ideas,that is,through technological transformation to save labor and reduce energy consumption,while purchasing base paper on the cardboard e-commerce website,or jointly purchasing with other enterprises,so as to reduce the cost of base paper.

Generally speaking,in the situation of declining demand and high cost,reducing raw material cost and energy consumption has become a common measure for upstream and downstream enterprises in the industrial chain.