Shanghai PanAsia-Potential Paper Co., Ltd. was established jointly by Han Song Paper of Korea and Potential Industry Company of the United States, etc. in Dec. 1996, specialized in the production of newsprint paper. The newly-established company has made a lot of achievements in the past few years. In 1998, the company was put into production and in the same year, the sales income reached 470 million RMB and made profits. In the following years, the company maintained good sales records and changed China’s long-term reliance of newsprint paper on export. So it has been listed among the one hundred most powerful enterprises of Shanghai. The company also saves a lot of foreign exchanges while providing first-rate newsprint paper. Therefore, state and local leaders speak highly of the company and some have inspected the company including Zou Jiahua, Huang Ju, Xu Kuangdi, Jiang Yiren, etc. Zou Jiahua, former Vice Premier and Deputy Director of the Standing Committee of the National People’s Congress visited the company twice and confirmed its achievements, especially in environmental protection. The company has won the Prize for Environmental Protection of China.

Why has the company been able to make so many achievements in a couple of years? General manager Xu Junjie ascribes it to the operation concept of “People-oriented, Advanced technology, Striving for a better future”. The company was built up within only 14 months, which created a record in the history of factory construction. And the cost (unit: ton) is much lower than the international level while the production cost has approached the international level. The company gives priority to “quality and customers” and, after the financial crisis of Asia in 1998, was united with Pan-Asia Paper, an integrated complex of the world famous newsprint multinational corporations worldwide into the large-sized joint venture in the field of newsprint paper of China, and also a big tax payer in Baoshan District. All these achievements are not only due to the firm support of the local government but also the advanced management. As a result, two general managers of the company have been awarded “Magnolia Prize” by the Shanghai municipal government.

International standard construction speed and skills

The piling started in 1997 and from then on the project worth 1.1 billion RMB was completed within 14 months, 4 months ahead of schedule. The time limit for construction was dramatically reduced compared with similar projects worldwide and the construction expense was also reduced on the basis of quality assurance. The average construction period in the world is between 18 to 20 months and the average construction cost is $1000 / ton paper. But for us the cost is reduced to $ 900 / ton paper, which greatly amazed people of the same trade and shareholders.

International standard environmental protection

The raw materials used by the company are unexceptionally waste paper, thus saving 2.1 million 30-year-old trees for the nation every year. The company invests heavily in environmental protection and greening to dispose of waste and beautify the environment. After disposal the waste water reaches the first-degree national standard for discharge. The waste residue and water are turned into mud, which, after burning, can be used as additives to macromolecule materials and cement. So no waste residue is left in the production. As the first one nationwide to use the round-the-clock online environmental monitoring system and the only paper-making enterprise to use the oven to dispose of waste residue and mud, the company takes the lead in environmental protection among all the paper-making enterprises in China.

First-rate technology worldwide

The company was awarded the title of “Advanced Technology Enterprise” of foreign investment soon after it was put into production. The company introduced the paper-making machine made by MITSUBISHI Heavy Industry of Japan, which represents the advanced standard in the late 1980s. In the light of the constant changes in paper-making technology worldwide, the company also initiates technical improvements duly to maintain the lead in technology. The projects the company has completed include net improvement, mud disposal system, white water disposal system and the twice ink removal system currently under way, all of which have brought substantial benefits. As to the development of new products, the company adapts to the changing market and has developed the 45-gram product to meet the need for high quality newsprint paper.

International standard work efficiency

Committed to the pursuit of excellence in production, the company has reached the advanced standard of international counterparts as far as work efficiency is concerned. The machine runs at the design speed of 1300 meters/minute. The production cost is reduced with the domestically produced chemicals and waste paper so that high quality newsprint paper can be provided at low price. The company aims at raising the proportion of self-supplied raw materials by establishing and perfecting the domestic supply system of waste paper as the raw materials. 

Touch customers’ heart with first-rate service

In the years after the company was set up, there appeared a lot of domestic paper-making factories, resulting in supply over demand in the market of newsprint paper. Facing the intense competition, many factories were forced to lower prices to get more orders. But our principle is to constantly improve quality of the products and the service. So we visit customers regularly to make them more satisfied and reduce complaints about quality to the minimum. When the market is in recession, we overcome a lot of difficulty and remain in high spirits. So when things go better we are able to meet the new challenges while many other enterprises have already stopped production and closed down.

Beneficent capital management

As regards capital management, the company has introduced the advanced credit control management system from abroad. It is unique in the management of long-term and short-term loans so as to reduce capital cost. The company rearranges the long-term loans, shortens the period of collecting accounts, quicken the turnover of circulating funds to keep them in beneficent cycle. The company has not suffered a bad debt ever since it was set up. The loans of fixed assets are paid ahead of time every year so that the bank is favorably impressed. Consequently the company has been listed among “3A” enterprises several years consecutively.

A strategic vision on a global basis

The company analyzes the market in the future with a strategic vision on a global basis. When Pan-Asia, the Singaporean shareholder is investing in the construction of a newsprint paper factory in Shijiazhuang of Hebei province, the largest in Asia and the third largest in the world, it reconsiders the stage two projects. The board believes that only a factory with the large-sized paper-making machine can take the lead in the future market and thus decides to increase the size of the stage two projects, at least as large as the machines in the Hebei Project, 8 metres wide at a speed of 1800 metres / minute. If the application for the stage two project gets approved, the company will be the largest paper-making enterprise in China and will try to complete the construction of the stage two project and put it into production before the 2008 Beijing Olympic Games and the 2010 Shanghai Expo to meet the ever-increasing need for newsprint paper in east China.

This year has witnessed the remarkable achievements the company has made. The sales of the first half of the year has risen by 8% compared with the sales of the same period last year and the profits have also increased. Sales of the whole year is be expected to be very satisfactory.