8. Risk and Contingent Plan
8.1 Competition
92% of all international raw material for papermaking comes from wood, which is pulped mostly by a sulfate process. The pulp’s color is a deep brown, its brightness is 13%. It is bleached by a bleaching agent containing chlorine, because it is too difficult to bleach the pulp without chlorine. Generally, the bleaching sequence of wood pulp involves multi-stage bleaching, using 5 stages of bleaching.
The TCF bleached pulp from whole hemp stems is bleached in only two stages, using hydrogen peroxide activated by activator. The main advantages are using other raw materials, its process line is simple, cost and investments are low.
8.2 Raw Materials
According the report of "The World of Fiber Processing", hemp fibers have more beneficial properties than wood fibers, especially for paper requiring high tear and tensile strength.
8.3 To Rely on Key Personnel
This point involves setting up an attractive salary system and creating an atmosphere in which people can fully use their faculties and abilities.
8.4 Market Notoriety
Setting up and strengthening international cooperation with other organizations carrying on active advertisement at home and abroad, and developing distribution channels.
8.5 Trade Barriers
We must give more attention to the trade barriers of Japan and the European countries and the problems of antidumping.
8.6 New Technology
The purpose is to set up a Research and Development Department of high technology, with the aim of thoroughly researching the field of hemp papermaking.
TABLE 1: SWOT FIGURE OF ANALYSIS
| Advantages | Drawbacks | |
| Factor analysis of enterprise’s external environment | Great increase in environment protection awareness Demand of TCF paper is greatly increased It will be contributory to export when China enters into WTO |
Project’s capital requirement is high The market competition is more severe every day International notability is to be raised |
TABLE 2: SWOT FIGURE OF ANALYSIS
| Advantages | Drawbacks | |
| Factor analysis of enterprise’s external environment | Patent technology is available Sufficient Raw material sources Long time R & D experience |
Experience for managing paper mill are lacking Having to rely on Key Staff Product Quality must be raised |
