Affected by factors such as market environment, trade wars and overcapacity, the Pearl River Delta and even the country's paper packaging industry are caught in insufficient orders and serious losses. According to rough estimates, the entire market loss rate has reached or exceeded 80%. The sluggish industry has caused the disorderly vicious competition to breed, and the behavior of defrauding downstream customers such as shoddy, quality and materials has also spread.

The Pearl River Delta Board Industry Association believes that this situation will seriously damage the benign development of the paper packaging industry, seriously hinder the advancement of technology and the promotion and application of green packaging and environmental protection, seriously affecting the national taxation and employment benefits, which is not conducive to the country's product upgrading. The overall quality plan is not conducive to promoting consumption upgrades.

In order to maintain a good market environment, the convener of the Pearl River Delta Board Association, Sheng Rongming, sent a proposal on behalf of the Association, hoping to change the current situation. The main contents include: Initiating the original paper mill to control the total production capacity of packaging paper; Initiating the second-level factory to reject orders below the cost price, discussing the low-price vicious competition blacklist system, maintaining the breakeven point, that is, the gross profit margin of more than 15%, and sharing the difficulties; The upstream and downstream enterprises in the paper packaging industry chain resolutely resist short-term interest temptation and vicious competition, and jointly promote technological progress and product upgrading.

　　The following is the full text:

　　The paperboard industry resists vicious competition and jointly creates a benign competitive environment

Dear colleagues and upstream and downstream entrepreneurs:

  Greetings!

Affected by the market environment, trade wars and overcapacity, the Pearl River Delta and the national paper packaging industry are in a state of insufficiency of orders and disorderly vicious competition, and the losses are serious. The overall market loss rate has been roughly estimated to have reached or exceeded 80%.

The disorderly development and vicious competition of the industry seriously damage the benign development of the paper packaging industry, seriously hinder the advancement of technology and the promotion and application of green packaging and environmental protection, seriously affecting the national taxation and employment interests, and is not conducive to the country's overall plan to improve product quality. It is not conducive to promoting consumption upgrades.

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

First, based on rising waste paper costs and national environmental protection policies, it is hoped that the original paper manufacturers will maintain the raw paper output and quality level, not blindly expand production, not reduce product quality, continuously reduce backward production capacity, control the total production capacity of packaging paper, and actively respond to market demand. Adjust production capacity and keep the market supply and demand basically stable and predictable.

Second, each secondary plant strictly controls costs, reduces shifts, implements a five-day working system and a Changbai shift working system, actively eliminates or adjusts backward production capacity, actively reduces overall production capacity, and maintains market supply stability. Co-response to shoddy and reduce the quality and materials to deceive downstream customers. Jointly reject orders below the cost price, maintain a good market order, benign competition, and maintain a breakeven point, that is, a gross margin of more than 15%, and overcome difficulties. In the next step, we will explore the low-price vicious competition blacklist system, call on everyone to resist the vicious competition in the upstream and downstream, and bully the suppliers for the long-term customers, and demand unreasonable quotations to resolutely report the boycott and appropriately raise the quotation level.

3. For the second-level factory's own carton workshop or the development of production capacity plan, call for maintaining the original market order, avoiding vicious smashing of downstream orders, encouraging the absorption of original employees and market factors, expanding business models, and expanding product market applications. Scope, expand the market scale, and jointly promote the expansion of the overall market size of paper environmental protection packaging and the advancement of technology.

Fourth, pay attention to prevent market risks, and establish a common notification mechanism for some unscrupulous merchants to maliciously low-cost cash-out behavior. Call on upstream and downstream enterprises to regulate credit management, strict capital recovery, and jointly regulate market behavior. The original paper mill is required to strictly control the supply of such behavioral secondary factories and strictly grant credit.

5. Calling on the original paper, the second-level factory, the third-level factory and the packaging users, based on the concept of long-term cooperation and common development, jointly safeguard the basic profit level of each link, share the difficulties, jointly safeguard the sound development of the industrial chain, avoid the ups and downs of the market, and damage each The common interests of the links will keep the market basically stable and controllable.

The packaging industry is indispensable as an important industry for the national economy and the people's livelihood. It is hoped that the majority of practitioners will proceed from themselves, jointly maintain a good market environment, jointly promote technological upgrading, upgrade products, adapt to national consumption upgrades, and continuously meet the people's demand for environmentally friendly packaging.

Make big cakes, share their achievements, and resolutely resist short-term interest temptations and vicious competition. Start with yourself and start from yourself! I hope that the vast number of peers will act together to create a beautiful tomorrow that belongs to the packaging industry!

　　Pearl River Delta Board Industry Association