Influenced by market environment, trade war and excess capacity, the paper packaging industry in the Pearl River Delta and even the whole country has fallen into a situation of insufficient orders and serious losses. According to rough estimates, the loss rate of the whole market has reached or exceeded 80%. The downturn of the industry has resulted in serious disorderly and vicious competition. Deception of downstream customers by suboptimal, lower quality and accessories has also spread.

The Pearl River Delta Paperboard Industry Association believes that this situation will seriously damage the sound development of the paper packaging industry, seriously hinder the technological progress, the promotion and application of green packaging and environmental protection, seriously affect the national tax revenue and the interests of employees, is not conducive to the national overall plan for improving product quality, and is not conducive to promoting consumption. Class.

In order to maintain a good market environment, Sheng Rongming, convenor of the Pearl River Delta Cardboard Association, sent a proposal on behalf of the Association, hoping to change the current situation. The main contents include: initiating base paper mills to control the total capacity of packaging paper; initiating secondary plants to reject orders below cost price, exploring the blacklist system of low-price vicious competition, maintaining a break-even point, i.e. gross interest rate of more than 15%, to overcome difficulties; and advocating that upstream and downstream enterprises in the paper packaging industry chain resolutely resist the temptation of short-term interests and vicious competition. Acts of competition, jointly promote technological progress and product upgrading.

The following is the full text:

Initiative to Resist Vicious Competition and Jointly Create a Benign Competitive Environment in the Cardboard Industry

Dear colleagues and upstream and downstream entrepreneurs:

Hello!

Influenced by the market environment, trade war and overcapacity, the paper packaging industry in the Pearl River Delta and the whole country has fallen into the vicious competitive situation of insufficient orders and disorder, resulting in serious losses. The overall market loss rate is roughly estimated to have reached or exceeded 80%.

The disorderly development and vicious competition of the industry seriously damage the healthy development of the paper packaging industry, seriously hinder the technological progress, the popularization and application of green packaging and environmental protection, seriously affect the national tax revenue and the interests of employees, and are not conducive to the national overall plan for improving product quality and promoting consumption upgrading.

To this end, on behalf of our counterparts in the Pearl River Delta, we solemnly appeal to:

1. Based on the rising cost of waste paper and the national environmental protection policy, it is hoped that base paper manufacturers will maintain the output and quality level of base paper, not blindly expand production, not reduce product quality, constantly reduce backward production capacity, control the total production capacity of packaging paper, actively adjust production capacity according to market demand, and maintain the basic stability and predictability of market supply and demand.

2. Each second-level factory strictly controls its cost, reduces its shifts, implements the five-day working system and the long-day working system, actively eliminates or adjusts backward production capacity, actively adjusts and reduces overall production capacity, and maintains the basic stability of market supply. Jointly resist cheating downstream customers with sub-optimal products, lower quality and accessories. Joint rejection of orders below cost price, maintenance of good market order, healthy competition, maintain a break-even point, i.e. gross profit rate of more than 15%, to tide over difficulties. Next, we will discuss the blacklist system of low-price vicious competition, call on all upstream and downstream to resist vicious competition, bully suppliers for a long time, and demand that unreasonable quotations be resolutely notified and resisted, and properly upgrade the quotation level.

3. In the case of the second-class factory's own carton workshop or the plan of capacity development, the author appeals for maintaining the original market order, avoiding the vicious scrambling for downstream orders, encouraging the absorption of the original employees and market factors, expanding the business model, expanding the application scope of the product market, expanding the market scale, and jointly promoting the paper environmental protection package. The expansion of the overall market scale and the continuous progress of technology.

4. Attention should be paid to guarding against market risks and establishing a common notification mechanism for malicious low-price cash-outs of some bad businesses. It calls on upstream and downstream enterprises to standardize credit management, strictly recover funds and jointly standardize market behavior. It is requested that the raw paper mill strictly control the supply and grant credit to the secondary mill for this kind of behavior.

5. Call on the base paper, second-class factory, third-class factory and packaging users, based on the concept of long-term cooperation and common development, to jointly safeguard the basic profit level of each link, to overcome difficulties, to jointly safeguard the sound development of the industrial chain, to avoid the ups and downs of the market, on the contrary, to damage the common interests of each link and to maintain the basic stability and controllability of the market.

As an important industry of national economy and people's livelihood, packaging industry is indispensable. It is hoped that the vast number of practitioners from their own point of view, jointly maintain a good market environment, jointly promote technological progress and product upgrading, to adapt to the upgrading of national consumption, and constantly meet the growth of people's demand for environmental protection packaging.

Make a big cake, share its achievements, and resolutely resist the temptation of short-term interests and vicious competition. It's about yourself, start with yourself! Hope that the vast number of peers work together to create a better tomorrow belonging to the packaging industry!