On the international cigarette paper Market

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In the past few years, the international cigarette paper market has experienced many turbulence, but supply and demand seem to have tended to balance... At least from the current situation

only a few years ago, there was a large surplus of cigarette paper in the international market. There are too many competitive companies in the market that produce too much paper. Two major companies have decided to withdraw from this business. After the unintentional closure of another major factory, the production of cigarette paper fell sharply. Suddenly, there is a shortage of high-quality cigarette paper in the market, making cigarette manufacturers busy ensuring their supply. High quality paper producers began to increase production. Today, it seems that supply and demand have become balanced

global supply exceeds demand. In mid-2001, Robert Fletcher and his descendants UK company withdrew from the cigarette paper business. Schoeller Hoesch of Germany also announced his intention to stop the production of cigarette paper

in the same period, purico, a paper producer, purchased P.H. glatfelter's ecusta paper mill located in Pisgah forest, North Carolina, USA. The ensuing labor dispute between NAT Puri and workers eventually led to the closure of the paper mill in August 2002. Ecusta is a major supplier. Its unexpected closure has destabilized cigarette manufacturers

but this situation did not last long - other high-quality paper producers increased production and filled the market gap

"there is no doubt that a few years ago, due to excess supply, the supply of cigarette paper exceeded demand, but then when Robert Fletcher UK closed its paper mill, and ecusta gradually reduced production before the final bankruptcy of the factory, it became a shortage product. In addition, schweitzg and lber mauduit also reduced production in the United States. It encouraged the cigarette paper industry to invest in new production capacity," Karl Ludwig Thelen of wattensapier's customer relations and product improvement department said. Wattensapier is a member of the trierenberg controlled and then applied alternating load experimental unit. "The American tobacco industry was seriously affected by the bankruptcy of ecusta, and it was in urgent need of finding other sources of cigarette paper at that time. The European tobacco industry did not suffer any losses, but the Far East region other than China was affected."

After that, several paper producers expanded their production capacity. Thelen said, "these new production capacities will balance supply and demand."

some people say that the number of companies currently engaged in this business is ideal - a number of large competitors plus a number of major smaller competitors provide manufacturers with an appropriate mix of suppliers

brian ace, managing director of cartiera del Maglio, said, "Due to globalization, mergers, privatization, and the increase of counterfeits, the cigarette industry has undergone tremendous changes in the past few years. Major cigarette manufacturers also want to purchase from fewer cigarette paper suppliers, hoping to obtain better prices and conditions. Reducing the amount of tar makes quality issues more important, and cigarette manufacturers increasingly need to review their major suppliers. One or two cigarette paper supplies alone Shang is either impossible or unwilling to meet this challenge. My personal feeling is that the merger activities of cigarette paper manufacturers are enough, because cigarette manufacturers always want to have a variety of suppliers for various reasons. "

the collapse of the global Chinese real economy, a tobacco industry consulting company located outside Atlanta, Georgia, is not due to these emotional summaries. Don Silberstein, President of materials solutions, said that even cigarette manufacturers believe that the degree of mergers is sufficient. He said that they should prevent the paper supply market from further shrinking by supporting smaller competitors. "Cross international cigarette manufacturers have been looking for international suppliers through contract negotiation. As a result, multinational companies are very dependent on two paper producers. They have expressed concern about relying too much on two companies. However, their purchase decisions have further widened the gap between the two companies and other companies in the world. If multinational companies want to reduce their dependence on two companies, they need to split or otherwise Support small companies so that they can invest and increase production. "

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