On 5 March 2010, Dr Cao Zhenlei (who is the deputy general manager of Sinolight Corporation, the president of China National Pulp and Paper Research Institute, and also director of the China National Household Paper Industry Association under the China Paper Association) paid a visit to Vinda. Dr CAO was warmly received and welcomed by the Group’s top management headed by Chairman Mr Li Chaowang.
President Cao and Chairman Li shared views about the impact of the recent Chile earthquake on the industry, and Vinda. Chairman Li also presented to Dr CAO the market prospects of upgraded Blue Classic Series tissue paper and Pleasant Goat Series products. LI also reported on the latest development plan of the Group.
Chilean pulp accounted for only 2% of the full-year pulp purchase volume of Vinda.
Recently, Chile, which accounted for 8% of global pulp production capacity, suffered an earthquake. Pulp mills closed down and it is not sure when they can resume operation. As a result, pulp will become short in supply and most certainly would boost pulp prices, adversely affecting normal production of some of the paper mills in the industry and have a knock-on effect of rising paper prices. How long this round of pulp prices rise will take will be a matter that requires further observation and analysis.
Vinda has consistently been practicing centralized procurement of its woodpulp requirement and has established long-term partnership with wood pulp suppliers.
Chilean as a source accounted for only approximately 2% of the pulp purchase volume of Vinda. Therefore, Vinda is confident of enjoying continued stable supply and its requirements for production will be met, thanks to the edge it has developed in woodpulp procurement.
In response to this new round of market pressure, President Cao looks upon Vinda to actively tackle it by adjusting its strategies timely, so as to further expand its market.
Vinda tissue paper has attained world-class quality and sells well
In mid 2009, the Blue Classic Series tissue paper, which stands for the Vinda image, was successfully re-launched after being upgraded with substantial technical improvements. The series has attained world-class quality.
In the second half of 2009, Vinda obtained a licence by Toon Express GZ Limited, and has since developed products under the Pleasant Goat Series. Each product launch party was met with great success. And order volume was so high that they could not be immediately filled. The sales keep picking up momentum, and this is expected to bring the Company’s sales to new high.
President Cao encouraged Vinda to continue to develop and produce top-grade household paper products to meet the demand of consumers and further consolidate its leading position in the household paper industry.
Take advantage of favorable situation to achieve scale construction
In response to the financial crisis, Vinda reacted rapidly, actively tackled it, and had sought favorable opportunities on the market to save energy and reduce consumption, expand production capacity, and increase market share. With the construction of the production base in Liaoning, Northeast China, the 7th production base of Vinda in China, in March this year, Vinda has progressed further in its build-out of its strategic asterisk-shaped geographical layout of production bases.
Vinda has evolved from a household paper manufacturer into a marketer of fast-moving-consumer-goods making a transition from traditional ‘production and sales’ to ‘brand operation’.Vinda has formulated a new five-year plan, under which it will gear-up the development of the existing seven production bases, step up scale construction on the basis of the prevailing production capacity, and progress toward the goal of a production capacity of 700,000 ton per annum.
President Cao highly praised Vinda¡¯s development plan. He thought the household paper industry has entered a stage of restructuring, A race of production capacity will speed up the industry’s consolidation, and only the fittest could survive. Vinda will become a big deep-rooted banyan tree in China¡¯s household paper industry by virtue of its edge in production technologies, product quality, and brand equity.