Chung Hwa Pulp

Chung Hwa Pulp Ranked the Top-Three Suppliers of Labelling Paper in the World! Mr. Chih-Cheng Huang, General Manager of Chung Hwa Pulp, said yesterday (16th) that the high-margin special-purpose papers such as labels and tapes were manufactured and sold in 28 countries around the world. This year, yet another product, the sublimation transfer printing paper, was launched for the purpose of making penetration into the customized market such as sweatshirts for sports and parties. All the above are expected to bring progress in this year’s revenue by 50%. For the future, CHP plans to develop derivative applications, and expand the use of the company’s products into different industrial areas such as products used in medication.

For the first half of the year, CHP achieved to make NT$10.87 billion in consolidated revenue, resulting in a mere increase of 0.3% over the prior-year figure. However, the company’s net income after tax amounted to as high as NT$297 million, an impressive growth of 60.6% over the same period last year. EPS is now NT$ 0.27.
Mr. Chih-Cheng Huang, who has already worked in the YFY Group for 36 years, was promoted to the position of General Manager of Chung Hwa Paper in March this year. Yesterday in the press conference firstly hosted by Mr. Huang as the general manager, he put emphasis on attentiveness and innovativeness at work, and conveyed his hope to lead Chung Hwa Pulp to level up and surpass the company’s operational strategy and sales goals.

Mr. Chih-Cheng Huang said that in the past two years, CHP continuously made improvements in the production to reduce cost. CHP’s production equipment in the company is also constantly upgraded for fulfilling the company’s corporate responsibility of energy-saving and low-carbon emission. Based on a preliminary analysis, the company’s production efficiency has been increased by 7% compared to last year’s figure. Improvement in production cost is expected to be gradually materialized in the second half of the year; looking at the company’s product portfolio, pulping has broadened custom-made product range, and more focus will be put in adding value to the existing products, and escalating the proportion of sales in self-used pulp. For specialty products, CHP will continue to deepen its impact in the international market.

In the 2017 Taiwan blackout, CHP was not even worried, because 50% to 90% of CHP’s electricity demand can be generated for self-use from the self-independent steam and electricity symbiosis system situated in the Kaohsiung, Hualien and Taitung Mills. However, hoping to stand by people in the hardship, CHP took the initiative to turn on the self-independent power generation system which enabled the company to continue its operation for over 10 hours on that day, and CHP even chose to sacrifice some production capacity. Apart from self-independent power generation, CHP improved production efficiency also through annual calibration and enhancement in production capacity. Last year, CHP achieved to save 4.73 million kWh of electrify, and reduce carbon emission by 180,000 tons. The volume is equivalent to the amount of emission absorbed by 463 Daan Forest Parks in one year’s time.
Looking ahead, Ray Chen, Deputy General Manager of CHO, said that continual repair work in the Dingfeng and Taitung Mills might probably affect the 3rd-quarter revenue, but profit is unlikely to decline; after these pulp mills finish annual calibration and equipment upgrade, CHP will be able to put more emphasis on the high-end paper and special-use paper markets. As the price of raw materials such as pulp is still at a high level, market demand will be still steady, and operational performance of the fourth quarter will be worth expectation.

In respect of CHP’s marketing strategy, the Company continues to focus on the research development and market penetration of specialty paper, and 90% of the paper is exported, bringing in gross margin accounting for 15% of the total. Currently, CHP ranks among the top three providers of specialty paper in the world.
In the conference, Mr. Chih-Cheng Huang emphasized the fact that paper use is omnipresent and omnipotent, so business opportunities in the industry are unlimited. Citing the sublimation transfer paper as an example, through transfer printing onto a few different materials such as polyester, customization can be achieved. Mr. Huang estimated this product would be especially popular among individual workshops which have the need to customize clothes for particular events. The product is also provided for some internationally renowned manufacturers such as MOLESKINE to produce papers for printing and making delicate notebooks.