ESTABLISHING SUSTAINABLE COMPETITIVE ADVANTAGES
One of China’s top papermakers, Bohui Paper, sees new opportunities in the shift away from plastic. It credits Metsä Fibre with inspiring its pre-sale and post-sale service.
HAIYAN SUN, photos BOHUI PAPER
Bohui Paper's headquartered is located in Zibo, Shandong province in China.
Although the Covid-19 pandemic created business chal- lenges worldwide, China’s paper sector was much less impacted. It managed to maintain and even increased production of certain paper grades. At the end of 2021, paper demand and prices were de- veloping positively, especially for packaging board grades. The sector experienced some consolidation and expan- sion, especially in the Guanxi region. Bohui Paper, one of the top 10 Chinese papermaking companies, has manufacturing sites in Shandong and Jiangsu, and around 4 400 employees. Company’s main products are white cardboard, corrugated paper, card- board and paper for gypsum board. “The Dafeng unit in Jiangsu province was planned in 2010. We have first-class papermaking machinery and about 2 500 employees,” says Mr Liu Jichun , General Manager of Bohui Paper. UNDERSTANDING THE MARKET AND INVESTING IN R&D An essential reason for Bohui to establish a unit in Dafeng is its geographic advantages. “Dafeng Port is only a few kilometers away from the mill. Our main raw materials mostly arrive by ship, and our products are delivered to the south and north China markets by ship. Convenient transportation has helped us exploit logistical advantages and keep down costs”, Mr Liu explains. He also points to other, sustainable benefits from Bohui’s location in Dafeng.
“This is an economically flourishing part of China, close to the consumer market. We have trained sales forces that are familiar with the market, and can quickly provide ef- ficient service for our customers.” He also says that, as a multinational company, Bohui Paper emphasises company management and hopes to take a lead in the future through digitalisation strategies. “Our management comes from all over China, and we welcome and assimilate people of different cultures. We en- courage our employees to grow together with our company.” Mr Liu describes the strategy as efficient. “We try to challenge ourselves to reach the highest benchmarks of the industry. We stress the importance of technological research for developing new products and manufacturing processes.” “We have also set up various research teams. Compared to the industry standard, our technological strength is sig- nificantly more advanced.” STABILITY IS THE FOUNDATION FOR COLLABORATION Metsä Fibre’s pulp, delivered to Bohui Paper’s Dafeng unit, is used to produce white cardboard. “We have collaborated with Metsä Fibre since 2005 and have a pleasant long-term partnership,” says Mr Liu. “Metsä Fibre provides both a stable product quality and stable sales policies for us, and as a big listed company, Bohui can provide stable demand. This has been the basis of a collaboration that has lasted for over 15 years.” “In my opinion, to establish a partnership is a mutual
The main products of Bohui Paper are white cardboard, corrugated paper, cardboard and paper for gypsum board.
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