Home » Transforming an Old State-Owned Enterprise: Hengfeng Paper’s Journey to a Digital and Intelligent Factory

Transforming an Old State-Owned Enterprise: Hengfeng Paper’s Journey to a Digital and Intelligent Factory

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Title: Hengfeng Paper Sets Industry Standards with Digital Transformation and Smart Factory Construction

Date: July 03, 2023

Source: Heilongjiang Daily

Author: Du Qingyu

Mudanjiang, China – Hengfeng Paper Co., Ltd. has emerged as a leader in the paper industry through its successful implementation of digital transformation and the construction of a smart factory. The Heilongjiang Provincial Internet of Things Industry Association and the Heilongjiang Provincial CIO Alliance recently organized a research and visitation activity at Hengfeng Paper for enterprise executives to explore its digital operation management ideas.

Hengfeng Paper’s digital journey began in 2001, with a focus on equipment transformation, product quality, and comprehensive implementation of informatization management. The company’s commitment to the integration of industrialization and informatization led to the successful reconstruction of its ERP and MIS systems in 2012, laying a solid foundation for digital transformation and the realization of strategic goals.

The paper industry heavyweight faced significant challenges, including long and complex production chains, asymmetric information, and increasing costs. However, Hengfeng Paper seized opportunities presented by new technologies such as big data and artificial intelligence. Through the construction of an enterprise service bus and the integration of multiple systems, the company successfully built a robust digital platform.

One of the notable achievements of Hengfeng Paper is the establishment of a smart factory, which covers all elements and manufacturing links, including planning, production, automation control, and quality control. The smart factory has significantly improved production efficiency, enabling the company to achieve high-quality development.

The strategic drive behind Hengfeng Paper’s digital transformation is characterized by the “one body, five intelligences, and two wings” approach. The company aims to integrate various aspects of the digital transformation service system while driving innovation and development with upstream suppliers and downstream customers in the industrial chain.

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In collaboration with Kingdee Cloud Sky, Hengfeng Paper implemented an advanced digital platform that supports R&D, production, supply chain, sales, and service. This platform empowers the company to adopt a flexible and customized product development model, offering over 10,000 main varieties and dimensions to cater to diversified customer needs.

The successful digital transformation has allowed Hengfeng Paper to increase its production capacity by five times, reduce personnel by 25%, and achieve cost reductions and efficiency gains. The company’s commitment to digitalization has propelled its growth and positioned it as a leader in the industry.

With its remarkable achievements in digital transformation and smart factory construction, Hengfeng Paper has earned accolades such as “Provincial Smart Factory,” “Digital (Intelligent) Demonstration Workshop,” “National Green Factory,” and “National Individual Champion,” showcasing its commitment to innovation and technological advancements in the paper industry.

As Hengfeng Paper continues to pave the way for digitalization in the sector, it sets a precedent for other industry players to follow suit, emphasizing the importance of embracing new technologies and leveraging them to drive growth and ensure competitiveness in an ever-evolving market.

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