Nine Dragons Paper, China's largest containerboard producer and recycler, has become a casualty of the "butterfly effect".
Mrs. Cheung Yan, Chairwoman of Nine Dragons Paper, announced the above statement. It clearly indicates that Mrs. Cheung is a very proactive woman. She creates change rather than wait until it happens. She sees opportunity and wants to be a head of her competitors by taking the first step before everyone else. While others were using Chinese paper made from bamboo stock, Mrs. Cheung sees opportunity of new raw material from other source and also how she sets favourable contracts with shipping company whose ships normally return empty to China anyway. Mrs. Cheung also believes in rapid growth strategy which could be seen from the way she heavily investing in expanding the business and preparing for the future. Even this strategy leads her to financial difficulty status and may seem to go in the opposite direction with others, as a risk taker like Mrs. Cheung, she face it and always try to find the way out. As a chairwoman, she does not look over only one step but the whole value chain. While everyone else was focusing only one specific activity, Mrs. Cheung was trying to manage and link all activities on the value chain that could help her company grow rapidly with more efficiency. She believes in relying on her own rather than anybody else and stabilising her corporate productive capacity should come first. Instead of using regional power grid, she contracted coal-fired co-generation power plants which costs the company one-third less than normal (reference from the book, year). Not only securing the power supply, Mrs. Cheung also manages her own transportation infrastructure and seeks for advantage from ocean and inland transportation which helps reducing loading and unloading charge and provides the company efficiency in the process. Even Mrs. Cheung is a business woman who has to concern about numbers on the company balance sheet; she also cares about the end customers. Even China has its own supply for paper which Mrs. Cheung can easily use, but because of the poor quality, she chooses to seek for a better choice even if it leads her to the other side of the world.