Study On The Value Of Integration Of Forestry And Paper Industry

The integration of forestry and paper industry and large scaled production are the essential characters to the paper industry, and also are the developing trend of world paper industry. According to the development of world paper indus try, most of countries with rich forestry have developed the integration of forestry and paper industry such as USA, Canada, Norway, Finland, Sweden, etc. It is an important way to ensure paper enterprises obtaining raw materials, to keep them advancing the ability of competition and sustainable development. Despite the alliance modes are different, they have a common character: establish raw material base and make it as the first workshop of paper enterprises, and then develop management integration. The integration not only brings about profits, but costs. Although we have difficult in calculating profits from it, the world paper industry development shows the integration of forestry and paper industry is profitable to them. In order to help enterprises to develop integration of forestry and paper industry, this paper researched economic value of integration of forestry and paper industry and analyzed its impact factors. By analyzing the strategy of enterprises, summarizing the competition environment of Chinese paper industry, reviewing the course of Chinese integration of forestry and paper industry, looking back the research general situation of integration, and then put forward the necessity for paper enterprises developing integration of forestry and paper industry. The author considered a paper enterprise established its own raw material base would ensure the enterprise obtaining materials supply steadily, decreasing the price of the wood materials, improving its competition ability and expanding its capital operation. This paper mainly discussed the economic value of integration of forestry and paper industry. The value included cooperation effect, differentia efficiency and option value. If a paper enterprise exposed to market risk can control a proportion of material supply, it means it buy an option that the enterprise can choose supply channels from its bases and markets. This kind of option value to an alliance of paper-making and plantation. This paper quantified the strategic value by the option model. Sensitivity analysis showed the option value could obtained from 88yuan/M3 to 173yuan/M3; the value could increased by the proportion of material increase in a proper range; the higher price of wood material, capital cost and price fluctuation, the more valuation; the lower cost of base materials than the social average cost, the more valuation, on the contrary, the higher cost of base materials than the social average cost, the lower valuation. The applying of the option model offers a good foundation to understand the strategic value of raw material base, to help enterprises set material base strategy and to analyze the felling quota policy.