Although Zhongyuan Paper Group and Donghai Paper Group lost the confidence to continue after learning that the Aidi Paper Company Research Institute had produced amazing results, contact with each other was still very difficult. In the end, it was postponed until that year.
At the end of August, after Aidi Paper Company threatened to transfer pulping equipment to paper companies in other provinces across the country, it panicked. Finally, under the coordination of the industrial bureaus of Liaoning, Hebei, and Shandong provinces, formal negotiations were held at the Jingxi Hotel in Beijing.
Wang Ai did not attend, but he read the negotiation records every day and had detailed discussions with Wang Bin and Secretary Jin at night.
Since the opponents are two paper-making groups, in order to save face for their opponents and to raise their own status, on the eve of the negotiation, Aidi Paper Company and Liaoyang Paper Equipment Company (toilet paper machine manufacturer) in which Aidi Paper Company holds all the shares
, Liaoyang Paper Chemical Materials Company (a manufacturer of chemicals used in papermaking such as caustic soda and hydrogen peroxide), Liaoyang Xinsheng Plastic Company (a plastic bag manufacturer) and other industry chain-related enterprises were integrated into the Northern Paper Group.
In the end, the three parties reached the following strategic agreement:
1. Zhongyuan Paper Group and Donghai Paper Group have withdrawn from the civil paper (toilet paper, burnt paper, paper towels, etc.) markets in Beijing, Tianjin, Zhangjiakou, and Tangshan. Northern Paper Group (Aidi Paper Company and its affiliated investment enterprises) promises not to enter the above
Civilian paper market south of the Four Cities.
2. Northern Paper Group promises to give priority to the transfer of advanced papermaking process equipment and chemical formulas to Zhongyuan Paper Group and Donghai Paper Group. Zhongyuan Paper Group and Donghai Paper Group promise to keep the above technologies confidential. If the confidentiality is leaked, they will bear the responsibility of Northern Paper Group.
Corresponding losses shall be compensated.
Third, in order to avoid market fluctuations caused by fierce price wars, the three parties stipulated that the national civil paper target market should be divided into the Beijing-Tianjin-Zhangtang line and the Taihang Mountain line. Northern Paper Group develops the three northeastern provinces and eastern Inner Mongolia, and Zhongyuan Paper Group and Donghai Paper Group develop along the Taihang Mountains
It is bounded by Mai, Shijiazhuang, Zhengzhou, Wuhan, Changsha and Guangzhou. The central and western parts belong to Zhongyuan Paper Group, and the southeast belongs to Donghai Paper Group.
…
Of course, this does not mean that Zhongyuan and Donghai have withdrawn from Beijing and Tianjin. Our great people in the capital can only let the Northern Paper Group take whatever they want. Due to the transportation cost of civilian paper, local toilet paper companies can still survive with small profits, let alone Beijing.
Tianjin First Line is the base of Northern Paper Group. There are other local paper companies in Liaoyang. In the narrow market range of the three northeastern provinces and eastern Inner Mongolia, Northern Paper Group has not occupied all, accounting for about 85% of the market share.
From the perspective of market division, this agreement is unfair to the Northern Paper Group. Although it is located in Liaoyang, due to the extension of the transportation line, it can reach the Beijing-Tianjin line at most, but this does not mean that the Northern Paper Group cannot jump to the south.
After investing in and building a factory, there will be no so-called transportation cost pressure. Therefore, the three parties also signed a non-disclosure agreement, or a secret agreement, under the explicit strategic agreement. Because this agreement is of great importance, it cannot be made public.
It was signed under the witness of relevant leaders of the National Development and Reform Commission.
Because this agreement involves sensitive international markets.
Zhongyuan Paper Group has the broadest potential domestic market. The entire central and western regions are the development direction of Zhongyuan Paper Group. Donghai Paper Group's target market area is slightly smaller and the population is relatively affluent. Northern Paper Group has the strongest economic strength and the ability to be independent.
The scientific research strength is strong, but the target market is the smallest. Therefore, in terms of dividing the international market, the two parties have made certain concessions to the Northern Paper Group. Specifically, Zhongyuan Paper Group will mainly develop westward in the future and will gradually develop in Xinjiang, Sichuan, and Yunnan.
Investments in civilian paper production bases in other places are targeting Central Asia and the Indian subcontinent. Donghai Paper Group is developing towards the southeast. In the future, it will invest in small and medium-sized manufacturing bases in Hunan and Guangdong, and is preparing to invest in Vietnam, Malaysia and other places.
The Northern Paper Group is developing northward, mainly radiating to the Russian Far East, the Korean Peninsula and Japan.
In fact, this agreement is still not very fair to the Northern Paper Group, because as we all know, Japan is a big paper-making country, and Nippon Paper, Oji Paper, Daio Paper, etc. are all strong papermakers in the world.
But Wang Ai still agreed to the agreement. This is because the main focus of these paper-making companies in Japan is on the high-profit industry of printing paper, and their progress in civilian paper has been stagnant for many years. This is also because of Japan’s labor costs.
Only the high-profit market can meet the demand, and China's labor costs are extremely low, and it can survive well in the low-profit civilian paper market. At the same time, Wang Ai believes that in terms of technology research and development, although Japanese paper companies have strong technology
Accumulation, but the investment intensity is far less than that of Northern Paper Group. Northern Paper Group has more stamina.
At the same time, because Northern Paper Group has made great sacrifices and tried to challenge Japan Paper's No. 1 position in Asia, the National Development and Reform Commission also promised to provide certain policy support to Northern Paper, mainly in terms of market protection, science and technology transfer, and even
In terms of talent, this is one of the important reasons why Wang Ai nodded in agreement.
In the short term, Northern Paper Group has made great sacrifices and the challenge is the most difficult. But in the long term, challenging Japanese companies will win Northern Paper Group a huge reputation and trust and support from superiors, and strengthen Northern Paper Group's determination to follow the scientific and technological research and development route.
.Zhongyuan Paper Group and Southeast Paper Group tend to be in South Asia and Southeast Asia, which have weaker papermaking capabilities. They have lower external pressure and stronger profitability, which also meets the internal needs of multiple companies to join forces to form a papermaking group. In other words, there is a lack of external
Under enough pressure, these two companies cannot transform into technology-driven papermaking groups. Over time, Northern Papermaking Group will lead the technological research and development of China's papermaking and occupy the height of technological research and development. Therefore, although the market is the smallest and the enemy is the strongest, in the future
The development prospects are the best.
After the signing of this agreement, the three major papermaking groups began to concentrate their efforts back to back. In the second half of 1999, Northern Papermaking Group invested in the second papermaking base in Daqing, Heilongjiang, the third papermaking base in Hunchun, Jilin, and the third papermaking base in Tongliao, Inner Mongolia.
The fourth papermaking base, in addition to firmly grasping the markets of the three northeastern provinces, has also targeted the Russian Far East, the Korean Peninsula, Japan, and Outer Mongolia. The other two major papermaking groups have also targeted the central and western markets in accordance with established plans.
Invest in a new papermaking base in the southeast market. Be ready to go abroad and go to Asia at any time.
Japan's "Sankei Shimbun", "Asahi Shimbun" and other major newspapers are very sensitive to this phenomenon. Although they do not know the contents of the tripartite agreement, let alone the contents of the non-disclosure agreement, they have regarded China as a paper product.
The Japanese paper industry in the dumping ground still feels threatened.
This chapter has been completed!