on the thin layer of newsprint that spawned a large integrated groups of annual revenues up to $ 18 billion. The Shandong huatai group, now involved in wide areas, diversification of its practice began ten years ago —— if not focus on the downstream industry to expand distribution of the paper, the local company may also now printed paper labels. Started by the paper
1976 year 2001 began his career in newsprint, 2006 as the world's largest newsprint production base, in 2011, built the largest of chlor-alkali salt chemical industry bases, then enter the new energy …… huatai group planning is 2015 to create a Kingdom of revenues reach hundreds of billions worth of integrated business.
area of huatai ambitions began in newsprint, relying on intensive capital investment and project layout, huatai newsprint markets did in China “ three world first ”, now and in number of intra-industry promote asset projects, pursuit of chemical, energy and other fields within the business landscape. But, this development of path also provoking: rely on large funds inputs of diversified expansion, and inputs of business plate has must periodic, past of success to copy did?
Boston advisory company directors Manager Pan Jieming (Benjamin Pinney) reminded said, any into new area of moves, are to consider potential risk, thinking company is has will strategy success implementation in place of elements, just funds or other tangible resources, also including is has response ability, such as business system, and process, and customer Foundation, to from each dimension of for integration of considerations, specific to huatai of case, he think, success is not impossible, but strategy process in the also exists must risk.
“ huatai paper ” expanded
1999 years, Li Jianhua abroad coated paper project, an equipment supplier to his message: there is a Germany company is preparing to cut off a newsprint production lines, to sell the equipment, asking interested to look at. Li Jianhua, device is working properly, the asking price is not expensive, intends to buy.
the other senior was an Executive Vice President, met Chinese guests not, just look up look Li Jianhua them. At that time, often abroad of Chinese enterprises on behalf of the tourism, he thought it was “ 19th business tours ”, not prepared seriously to do business. Thus, Li Jianhua invited him to come to China to see, good faith. Germans did come, made a point of exposure the huatai “ most backward ” production line. However, paper neat and clean, shop smell strong odor is not, let the Germans made a deep impression. The Germans told Li Jianhua, “ you have first class staff and site management was too behind devices. &Amp;rdquo; then, sale and purchase contract.
German what you see is not by chance, huatai shares belong to chiyuxiang his boss, Deputy General Manager “ perfectionist ”,“ the passage is a tile look uncomfortable, sure going to tidy up tidy up. &Amp;rdquo; after that, huatai has sent more than 50 passengers to Germany studying newsprint manufacturing, order and lines: all equipment, photography, and then remove the shipment to China for Assembly, with the most simple way to produce 160,000 tonnes of production lines moved back home.
“ at that time, if you do not have to enter the newsprint manufacturing, huatai has probably does not exist. &Amp;rdquo; Li Jianhua said. 1976 construction of huatai, he was earning hundreds of millions of dollars when you scale, concentrated in cultural paper low-end products, benefit well but there is no status, many similar enterprises later due to competition, environmental policy had been cleaned out. And before and after 2000 when port, China's print media are in a period of rapid development, rise high urban media, newsprint once “ to command a phenomenal ”, a lot of dependence on imports, huatai just in time to catch the import substitution, a ton of newsprint to have thousands of net profit of $, the introduction of production line of less than two years to recover the full cost. -
2001 year in 2006, Li Jianhua has invested more than 8 billion yuan, introducing an annual output of 400,000 tons and 450,000 tons of 4 high-grade newsprint production line, has laid its leading position in newsprint. As of 2010, huatai Group paper production capacity has reached 3 million tons, of which annual production capacity of 2 million tons of newsprint, become the world's largest high-grade newsprint base, China's largest producer of newsprint.
“ we use before and after more than 10 billion investment in completed the import substitution of newsprint in China, now almost all the major papers with huatai paper, Central Party literature Publishing House, and other important documents also used huatai paper. &Amp;rdquo; Li Jianhua said.
in addition to the ever-expanding production capacity, huatai paper industry continue to promote the integration of industry in recent years, completed and consolidated in the Yellow River, Yangtze River and Pearl River Delta “ 3.1 lines ” strategic layout.
Regional distribution in order to reduce transportation costs, and drive industry consolidation. Chiyuxiang explained that &ldquo Guangdong annual consumption of more than 1 million tons of newsprint in the market, together with Hong Kong and Macau, very high demand, shipped from Shandong to the other side, a ton of freight costs 400 dollars. Local construction costs are low, wherever the huatai, and other enterprises are faced with strong competition pressure. &Amp;rdquo; and huatai newsprint costs lower, because their domestic first deinking of waste paper pulping equipment, raw materials made of waste paper, about other enterprise General 20% you want to add in raw materials of pulp, in the case of pulp prices expensive, huatai has low cost advantages and, secondly, paper chemical raw materials, electricity and other required substantial resource provided by the subsidiaries of the group, relatively lower cost.
