Corrugated paper box production is characterized by its simple process, low technical content, low investment in equipment, large social demand and other factors, and it has been developing rapidly in the past ten years. In particular, Sino-foreign joint ventures, sole proprietorships and cooperative carton enterprises have developed faster. On the domestic large-scale product group companies do their own carton enterprises and private, self-employed enterprises, according to incomplete statistics, the country more than 10,000 carton enterprises above the county. Townships, streets, and private carton factories greatly exceeded the above figures. With the rapid economic development of Shanghai, Jiangsu, Zhejiang, Shandong, Guangdong, Tianjin and other provinces and cities, due to the excessive number of factories, the contradiction between production and sales is quite prominent. Most carton enterprises are in a difficult position, and companies that suspend production, change production, and shut down are increasing. According to the investigation of the paper box industry by the Shanghai Baoxie Paper Board, the problems are generally as follows.

First, the lack of overall layout of the plant, macro-control imbalance

The production of cartons is mainly for the sales of local products. In the process of market economy development, due to the lack of overall layout of the government departments, the workers and peasants in the business school, the carton enterprises in all walks of life, a large number of foreign businessmen to Shanghai to start Sino-foreign joint ventures, cooperation , wholly-owned carton enterprises. At present, such enterprises have grown to more than 60 companies, most of which have large investment scales. They have introduced advanced production equipment and modern management methods and have certain market competitiveness. Some large-scale enterprise groups have a large demand for carton packaging. Considering the group's internal packaging facilities, it is necessary to arrange surplus personnel and reduce internal capital outflows. There are more than 10 large-scale group companies in Shanghai to start a carton factory. They are mainly self-produced and used to expand social business. In addition, some townships and sub-districts have closed down due to various factors. The plant managers and salesmen of these plants have used their business to self-run and co-organize small individual carton factories. At present, there are only 600 large and small carton enterprises in Shanghai. Family.

Second, unfair competition among enterprises, some companies are difficult to survive

Corrugated cartons are low-profit products. Under full-load production conditions, companies can still operate normally. Now many cartons companies are competing to launch, which is bound to create a situation in which supply exceeds demand. There are state-owned, joint ventures, cooperation, joint operations, township and township offices, street offices, school offices, military offices, and private offices in the carton manufacturing plant. The composition is very complicated. Due to differences in ownership, state-to-business policies are different. State-owned and old collective enterprises are overburdened and corporate pressure is too great for them to survive. Some enterprises enjoy certain advantages from certain preferential policies of the government. In particular, welfare enterprises in the civil affairs system and school-run enterprises in the education system enjoy preferential policies of “double tax exemption”. Sino-foreign joint ventures enjoy preferential taxation policies for years of tax exemption and paper imports on their own. These enterprises rely on policy advantages to drive down the price of cardboard boxes to compete for business based on the market. The industry has reacted strongly to this unequal competition. With the diversification of market competition methods, some companies have high management costs and heavy burdens, and companies that cannot adapt to the development of the situation are in trouble and either stop production or change production. The original more than 20 state-owned carton factories of Shanghai Packaging and Decoration Co., Ltd. have been shut down and switched in the past more than a decade, and the remaining two companies are in poor conditions. There are few companies in the carton industry in China.

Third, large and medium-sized enterprises generally lack of power, equipment shorting

In recent years, large and medium-sized carton enterprises in Shanghai have invested in the transformation of technological equipment to enhance market competitiveness. According to the investigation by the author from 1993 to 1998, a total of 60 pieces of corrugated cardboard production lines were put into use and the corresponding supporting equipment, which greatly increased the technical content, improved the quality of carton products, and enhanced the market competitiveness. As the production capacity of advanced equipment greatly exceeds the market demand, the average operating rate does not exceed 50%. The annual demand for corrugated boxes in Shanghai market is approximately 4.5 billion yuan. At present, the annual sales value of each production line can reach 60 million yuan. The production capacity of the 73 production lines in the city is 4.38 billion yuan, plus the productivity of 90 sets of single-sided machines. At 1.35 billion yuan, the two additions are 5.73 billion yuan, which has exceeded market demand. There are also more than 300 production capacities of stand-alone small-manufactured enterprises that are not included. The contradiction of oversupply is very prominent.

Fourth, small cartons are uncompetitive and hard to survive

Small carton enterprises have problems such as poor equipment, poor product quality, poor management, low quality of employees, and low production funds. Most of these enterprises are rural offices, village offices, street offices, school-run enterprises, and private enterprises. Due to the inability to invest funds in technical equipment reform and poor product quality, they can only participate in market competition by reducing the price of cartons. This kind of competition can only make enterprises more and more troubled. In recent years, there have been more than 70 small carton factories shut down by members of the Shanghai Baoxie Paper Board. According to the report of the Nanjing City Carton Association, more than 30 small carton factories were closed in 1998.

V. The "pay, ow, pressure" user payable situation is very serious and the company can hardly afford it.

In recent years, it has been very serious for users to default on the payment of cartons. According to the survey data of the Shanghai Baoxie Paper Board, the industry’s average arrears accounted for 28% of total sales, users could pay 49% within 60 days, 25% within 90 days, and 26% paid for 90 days In the above, a small number of users did not pay within one or two years, and some users’ companies went bankrupt and resulted in dead accounts. Some users did not pay due to long-term, cardboard box companies are forced to appeal by legal means is very prominent, and some court decisions have no result, and some payments in the form of product mortgages, resulting in the company is difficult to handle and suffer economic losses. The above situation caused the carton enterprises to have very tight liquidity and forced them to stop production when they could not buy raw materials. Some reputable companies were forced to borrow from banks and increase interest payments to increase their production costs. Some users have mastered the contradiction of oversupply in the carton industry, defaulting on payables everywhere, and some users lower the price of carton everywhere and increase kickbacks.

Sixth, lack of supervision and investigation of production licenses, strong repercussions

Since the corrugated paper box production license system was implemented nationwide in 1994, most large and medium-sized enterprises took the initiative to bid for production licenses, and made improvements in such areas as business management, quality supervision, technological equipment reform, and detection methods. Through inspection and acceptance, there have been significant improvements and improvements. However, there are also small-scale, informal, and individual carton companies that do not attach great importance to the work of collecting evidence. So far, they have not applied for production licenses. There is no corresponding measure for such departments of unlicensed cartons. There is no supervision and inspection in accordance with the relevant regulations issued by the state for production licenses, let alone. This prevented the bid and review from proceeding normally. Certified enterprises have a very strong response. They have the same production as licenses and certificates, and production licenses have no effect.

In response to the above problems, the author proposes several suggestions to the relevant government departments and association enterprises.

1. It is recommended that provincial and municipal economic commissions, foreign investment commissions, industry and commerce, civil affairs and other government departments strictly control the construction of new carton enterprises, strengthen macroeconomic regulation and control, and listen to the opinions of industry associations when approving and setting up factory projects. It is recommended that an equal competition mechanism be established to strictly prevent falsification from bidding for benefits and School-run enterprises have given policy adjustments to the common problem of unfair market competition caused by double tax exemption policies.
2. It is recommended that all companies and higher authorities should carefully consider the addition of corrugated board production line equipment. First of all, it is necessary to conduct market research and whether users in the hands can expand the business volume and the number of new users. Whether it can achieve the energy of the production line and prevent the blind construction from causing economic losses that the company should not have.
3. To solve the two major problems of insufficient starting of corrugated cardboard production lines and lack of market competitiveness of small carton factories. Associations and enterprises must implement a new pattern of co-production of centralized manufacturing and decentralized manufacturing within the industry. The Association must do a good job in the work of large, medium and small carton enterprises, and play a mediating role in establishing fair and reasonable cardboard processing prices within the industry. Make the supply and demand of both sides profitable, to play both sides of the enthusiasm, the Shanghai Bao Association has done a lot of promotional publicity in recent years, has played in the actual progress, the author investigated 12 corrugated cardboard production line companies, from January to June 1998 115 small companies purchased 14,131,000 square meters of paperboard from production line companies, and the sales value reached 48.6 million yuan, which was greatly welcomed by small carton enterprises.
4. The Association endeavors to do a good job of “pay, pay, and pressure” payables for enterprises, formulate interim regulations for industrial receivables, take necessary mandatory measures for users, and collect some advances from new users, and make strict internal regulations for enterprises. Responsibility system and operating personnel contract responsibility system, perfect order contract system, etc. strengthen internal management. The association regularly collects user arrears data, and sends internal notifications to users of large amounts of long-awaited users and users who have appealed to the court, so that the company can attract attention when accepting orders from users.
5. It is recommended that the relevant production licensing department should strictly implement the relevant provisions of the government's production license system, listen to the strong voice of carton enterprises around the country, strengthen the investigation and prosecution of unlicensed production, and must not allow others to let themselves go and promote the normal conduct of the bid and review.

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