Huang Zhihai: Specializing In Papermaking Industry

If there is a dream, there will be hope; if there is hope, then we will struggle.

Zhicheng paper products

In 1995, Huang Zhihai came to Yunnan and Kunming to set up a wholesale food business. Then business became more and more open and began to get involved in other industries. In 2000, he founded the first cardboard company in Yunnan.

Someone once described him like this: "from a practical perspective or from a rational perspective, Huang Zhihai is a wise, thoughtful person. He works like a stream of water, and can do everything that is pervasive and invincible."

His wisdom and thought were in the long run of cardboard production.

In the interview, Huang Zhihai repeatedly stressed to reporters that we should lay down our feet on the ground and strategically foresight to plan the business well and make the special and strong cardboard industry.

He disclosed that he had recently invested $1 billion 800 million in building a large packaging City, bringing large customer groups to the park, and providing nearby partners with cardboard, which greatly reduced the pportation costs of both sides, and then built it into Yunnan and even China's largest packaging city.

Reporter: it is understood that at present, the development of Yunnan's paper products industry is in the ascendant. Could you tell us about the development of your enterprises?

Huang Zhihai: in 1995, I came to Kunming and Yunnan to do wholesale food business.

In 1997, Kunming Paperboard Factory was established.

Founded in 2000, Kunming Zhicheng paper packaging Co., Ltd. is the first cardboard company in Yunnan.

In 2006, a new factory site was bought, and a new plant was built in 2008 and put into operation in 2009.

Last year's annual sales exceeded 100 million yuan, and this year's target is 180 million yuan.

It mainly produces cardboard and carton, and it is applied to the packaging of various products.

Reporter: Why did you choose to come to Yunnan at that time?

Huang Zhihai: before, my father-in-law already founded a confectionery factory in Yunnan.

After I came to Kunming, I thought Kunming was a good place for Southeast Asian countries. The market is still small and has potential for development. So it has decided to end its business in Chaoshan, and the whole family will come to Kunming to develop.

Reporter: you said you founded the first cardboard factory in Yunnan. Can you tell me why you care about the cardboard Market?

Huang Zhihai: in coastal cities, the division of production was very common at that time. There was a very professional business in paperboard packaging, but not in Yunnan.

Moreover, the production of cardboard in Yunnan was in primitive production and not in scale at that time, and could not meet the requirements of the state for paperboard production.

I saw the blank point of Yunnan cardboard market, which is a good business opportunity.

Then I went to study in Shenzhen, Dongguan and other Pearl River Delta counterparts.

Then I bought a production line of cardboard.

At first, Yunnan's enterprises did not know much about cardboard.

So, through various channels, I increased the intensity of publicity, and told the enterprises of the carton factory to know that directly buying my cardboard can save labor, ensure quality, increase output value, and meet national quality requirements.

Before and after, I spent two years mainly promoting things and cultivating Yunnan's Cardboard Market.

It should be said that in 2003, cardboard enterprises in Yunnan had a real understanding of paperboard.

In 2004, my paperboard business entered a stage of rapid development.

At present, I mainly produce cardboard, and we produce only 1/3 of all business.

Reporter: Yunnan cardboard market is nurtured by you. Until now, how do you see the current situation and future development trend of Yunnan cardboard Market?

Huang Zhihai: the development prospect of Yunnan's packaging industry is very good.

In recent years, Yunnan has attracted a lot of investment, especially after the Secretary of the Kunming Municipal Committee took up office.

In recent years, the state has implemented the policy of expanding domestic demand, and the support for farmers has also increased year by year.

Yunnan is a large agricultural province with a lot of agricultural land.

For example, Yunnan has a large number of bananas and has a unique climate. At present, the amount of planting is the highest in the country, exceeding that of Hainan, Guangxi and Guangdong provinces.

There are also flowers, tobacco, pomegranates, watermelons and other fruits in Yunnan, which are sold all over the country.

Reporter: now, what brands do you cooperate with?

Huang Zhihai: now we mainly sell cardboard as our main business, that is to say, we sell cardboard to manufacturers of cartons.

I hope to be strong in papermaking industry.

Reporter: as you mentioned, the state's policy of expanding domestic demand will affect your industry.

Huang Zhihai: in 2009, the new plant we built went into operation. The sales volume this year is about 50000000 yuan.

The domestic demand policy of the country played a great role in the sales of agricultural products in Yunnan. This also promoted the development of the carton industry, and naturally, my cardboard sales grew accordingly.

Our board is not only sold in Yunnan, but also sold abroad, such as Vietnam, Burma, Laos, Japan and Korea.

Reporter: with the establishment of China and ASEAN Free Trade Zone, the economic and trade exchanges between countries have been strengthened, which should also have a great effect on the packaging and cardboard industries in Yunnan.

Huang Zhihai: the location of my present plant is near container logistics center, railway station, Kunshan Expressway and Kunyu expressway. The location is ideal, which facilitates the pportation of products.

Burma is almost blank in the paperboard packaging industry, but she is a big agricultural country and needs a large number of carton packaging.

This is a major market I am currently entering.

My own pomegranate packaging box and banana packing box can be seen everywhere in Yunnan, and also exported to Sichuan and other provinces.

Reporter: cardboard boxes are large but low value-added goods.

Like your products sold to Southeast Asian countries, the distance is far away. Transportation costs occupy a large part of the cost. How do you solve the problem of reducing costs?

Huang Zhihai: reducing costs from technology.

The thickness of the previous 5 layers of cardboard is 1.2 centimeters. Now, through the more advanced equipment, it can produce EB tile type cardboard, that is, ensuring the quality of the cardboard under the high compressive strength.

For example, before a container loaded 10 thousand, now can hold 12 thousand.

This reduces pportation costs to a certain extent.

At present, we can produce EB tile type paperboard in Yunnan province. We are the only company.

At the beginning of the launch, the customer worried that the thin paperboard was not strong enough to resist pressure, but after that, the quality of the board was recognized.

This has also increased the output of our enterprises rapidly.

Although there is little profit space in the packaging industry, the scope of application is very wide. We have 3 production lines, with a daily output of about 200 tons.

Reporter: updating technology is a way to reduce costs. Another way is to lay out production bases everywhere. Is this method included in your development plan?

Huang Zhihai: Yes, but at present, the political situation in Southeast Asia is not very stable. As I mentioned above in Burma, they often fight, and all sides win or lose, which is not conducive to landing investment base.

In the market scope of our product sales, Vietnam is more suitable for building production bases.

Vietnam's current political situation is relatively stable, and the economy is also developing.

Next, I intend to visit Meng Ding. Meng Ding is a southwestern part of Yunnan province. It is a sub County town under the jurisdiction of Gengma county. It is an open port of state and linked to Burma's mountains and rivers.

The local government invited me to cooperate in the past. I also plan to build a production base there, which is neither pnational nor shortening the distance between the products sold to Burma.

Reporter: can you talk about the blueprint for the future development of the company?

Huang Zhihai: I hope to build a large packaging City, originally located in Yiyang, 50 kilometers away from Kunming, and is expected to invest 1 billion 800 million yuan.

My assumption is that my own business in the packaging city as a leading enterprise, the surrounding customer groups to the park, I provide them with cardboard to shorten the pport distance, in the case of rising oil prices, pportation costs can be greatly reduced.

It can be thought that the pport cost of a few cents per square meter of cardboard will be reduced to the same park. The number of freight that can be reduced in one year is amazing.

At the same time, it can also reduce the cost of management, which is beneficial to either side.

This project is currently advancing. If it can be built, it is not only the largest packaging city in Yunnan, but also the largest in China.