The hottest Oriental paper acquires Tengsheng pape

Oriental paper acquired Tengsheng paper to consolidate its position in the northern market

it tech packaging, Inc. (hereinafter referred to as Oriental paper, stock code: ITP), a leading large-scale enterprise in China for recycling and reusing waste materials, energy conservation and environmental protection, acquired Hebei Tengsheng Paper Co., Ltd., a well-known enterprise in the north, in cash on June 25. This acquisition will help Oriental paper consolidate its position in the northern market, Pave the way for it to enter the household paper market

Hebei Tengsheng Paper Co., Ltd. was established in 2011. After eight years of development, the enterprise market scale and performance scale have already had strong industry competitiveness. The acquisition of Tengsheng paper by Oriental paper is a powerful supplement to the enterprise's industrial chain, forming a complementary advantage of resources, which will enhance the market share of the enterprise in the north and consolidate its market position in the north

it is reported that Dongfang paper household paper production line factory is renting the land use right of Tengsheng paper. After the acquisition of Tengsheng paper, it will reduce the production cost of the enterprise, improve the profit margin of the product, and make the product pricing more flexible, which will win a greater advantage for the enterprise in the market competition. For traditional enterprises, the cost of land use has always been a major pain point for many enterprises. The completion of this acquisition has solved the pain point of enterprises, won a stable rear production base for enterprises, and contributed to the improvement of production efficiency

Hebei Baoding Dongfang Paper Co., Ltd. is located in xiong'an area. On April 1st, 2017, the State Council decided to set xiong'an New Area as a national new area, which is another new area of national significance after Shenzhen Special Economic Zone and Shanghai Pudong New Area. It is a millennium plan and has important strategic significance. After Oriental paper completed the acquisition of Tengsheng paper, the value of its fixed assets has great room for growth in the future. Its superior geographical location has far-reaching significance for the development of Oriental paper's future business territory

affected by the global economic cycle and the deleveraging of financial markets, since 2018, many enterprises have fallen into a liquidity crisis and even the risk of capital rupture due to the lack of attention to cash flow. The fact that Oriental paper can continue to make efforts in 2019 and complete the acquisition with its abundant cash flow shows that the senior management team has a strategic vision for the business management of the enterprise, the ability to grasp the macro-economy and the ability to understand the financial market. In addition to the competitiveness of an enterprise's own products, the vision and pattern of its management team are also very important. Dongqing: build good materials in China. How to operate the cash flow of the enterprise and when to mobilize the cash flow all need extremely high wisdom for the enterprise operators. In 2019, many peer enterprises in the market fell into a liquidity crisis, and cash is more valuable, which also means that there are some super hard data, light weight enterprises have more initiative and pricing power. The market competition is brutal. The acquisition of Oriental paper shows the determination of the enterprise to continue to expand its production line and market, and also shows us the broad vision of this enterprise

relevant research shows that the consumption of household paper in China is rising rapidly. As a rigid consumer goods, household paper is closely related to the growth of national GDP, population growth, improvement of quality of life and other factors. Driven by factors such as the upgrading of consumption, the improvement of per capita GDP and the improvement of living standards, the household paper industry has gained continuous momentum from the data of power line bending testing machine. Since 2012, the compound growth rate of household paper consumption has been 6.95%. The domestic market scale of household paper in China has continued to expand, reaching 98.8 billion yuan in 2016, with a year-on-year increase of 12.06%. Although it has maintained a growth rate of 9.6%, there is still a large gap with developed countries and regions, so China's household paper market has great potential. The completion of this acquisition will continue to expand its business production line, and its overall strategic vision will enable its performance in 2019 to continue to grow at a high speed