By: Xie Guolin
General Manager Liu Jianping and Business Manager Wei Hong of MCC International Trading Co., Ltd. (MCC TRADE) visited MCC Meili Paper Industry Group (MCC Meili) during February 23-25, 2009. They met with Chairman Liu Chongxi of MCC Meili and Chairman Wang Xin of Pulp & Paper Company and the other heads of MCC Meili. During the meeting, both parties discussed and entered into agreement on more extensive cooperation, as well as the consolidation and further development of the mutual strategic alliance.
In order to tap the potentials and supplement each other, the two MCC companies formed a strategic cooperative partnership in last year, covering the business fields such as: (i) raw materials supply; (ii) product sales; (iii) finance; (iv) port service; (v) logistics; and (iv) share of customer database. After that, MCC TRADE established a sales network in east China, and organized a specific department for dealing with the procurement and supply of raw materials for pulp/paper production and chemical preparations. As a result, the company witnessed a successful product marketing performance and an increased market share in this region. Due to the effect of the plaguing financial downturn in this year, however, the product prices dived and the market demand shrinked all of a sudden. To cope with such a situation, MCC TRADE made great efforts in exploration of new market in the other regions such as Zhejiang Province. By means of multi-level distribution mechanism and supply-sales at specified location, the monthly sales amount hit a record of 7,000 tons. Pursuant to the agreement of this time, both parties shall: (i) endeavor to conquer the difficulties encountered in the past; (ii) continue to enlarge the sales of white cardboard and take a hack at selling the other products with high added-value; (iii) support each other in respect of raw materials supply, product sales, finance, logistics and port service; (iv) make full utilization of Shanghai s advantages in financial trading, logistics and port facilities; and (v) further strengthen the strategic partnership.
