Pulp based raw materials account for more than 70% of the cost of various paper grades, and even 85% of the cost of individual paper grades. So, why do the advantages outweigh the disadvantages of the rising pulp prices for leading paper enterprises?

      Large paper enterprises usually keep about six months of pulp inventory. By adjusting inventory and financial hedging, large paper enterprises are not very sensitive to the rise of pulp price.

     But small factories are different. Limited by capital and scale, small factories can only choose to buy spot products for production. Pulp prices continue to rise, resulting in the shortage of funds, raw materials and customer loss. It is reported that at present, the survival of small factories has been very difficult. Many small factories are actively seeking to be acquired or declared bankrupt, and the low-end production capacity of the industry is speeding up to clear.

     Therefore, if small and medium-sized paper enterprises want to survive, they must improve production capacity and use fully automated production lines to improve production efficiency. Foshan Meijing machinery company can help small and medium-sized paper enterprises upgrade their production lines and improve their production efficiency.