Tropical Timber Market Report (2021-11-12)

As Asian markets recovers further from the Covid-19 pandemic, rising production and freights costs have become growing concerns. The recent spotlight on climate change has once again generated conversations in the industry, with wood highlighted as a material that can potentially help achieve some of the carbon targets. ITTO shares more about the recent developments across the globe.


Consolidating the position of rubberwood furniture

Rubberwood production can further strengthen the country’s position as a leading furniture exporter in the world according to Deputy Plantation Industries and Commodities Minister, Wee Jeck Seng. 

Wee said rubberwood was an important raw material that could feed the growing global demand for furniture.

Malaysia has a mature furniture industry and last year exported over RM11 billion worth of furniture. This year the export value could increase to RM13billion. There is a high and growing demand for furniture in international markets and, says the Minister, Malaysia has the raw materials to produce more furniture.

Malaysian furniture is exported all over the world with most going to the US. Rubberwood is considered a renewable resource from plantations.

The tree can be used for the production of latex before being harvested to produce sawn rubberwood.


Trade and sustainable development

Malaysia was among 28 countries which signed an initiative to protect forests during the United Nations Climate Conference (COP26). 

As a key producer of palm oil and timber, Malaysia has been involved in consultations over the past year on the Forest, Agriculture and Commodity Trade (FACT) Roadmap of Actions. 

The others who have agreed to the initiative include Japan, Indonesia, the UK, the US and the European Union.

The purpose of the FACT dialogue is to promote sustainable development and trade of agricultural commodities while protecting and sustainably managing forests and other critical ecosystems. It aims to agree on principles for collaborative action, a shared roadmap on sustainable land use and international trade and to take action now to protect forests while promoting development and trade.

Malaysia hopes to reduce the intensity of greenhouse gas (GHG) emission across the economy by 45 percent based on the Gross Domestic Product (GDP) in 2030.


IUFRO and forest plantations in Sarawak

In a webinar jointly hosted by the Sarawak Forestry Department and the IUFRO Working Party on Acacia Genetics and Silviculture, Chief Minister Abang Johari Tun Openg said R&D is one of the key initiatives to address the gaps Sarawak faced in forest plantation development.

He said the challenges include sourcing high-quality planting materials, addressing the risk of pest and disease and deciding on the species to plant.

Themed ‘Embracing Transformation for Sustainable Management of Industrial Forest Plantations’ the three day webinar addressed the Sarawak government’s calls for the application of technology and innovation in upstream and downstream R&D to ensure productivity and viability in the forest plantation industry.


Furniture industries maintained high level of production

According to Zuraida Kamaruddin, Minister for Plantation Industries and Commodities, Malaysia’s wooden furniture exports are projected to rise to more than RM13 billion this year from the RM12.8 billion in 2020.

The Minister said even during the pandemic when facing disrupted supply chains and logistics the furniture manufacturing industries managed to maintain a high level of production and exports. Looking ahead, the Minister singled out the US market as offering great potential for expansion as Malaysia is a supplier of high-quality and stylish furniture.

Regarding foreign workers, the ministry is discussing how to resolve this with the Ministry of Trade and Industry Ministry.

In related news, manufacturers in Johor State contributed almost 90 percent to Malaysia’s wooden furniture export earnings last year.


New Chief Executive for certification council

The Malaysian Timber Certification Council (MTTC) has appointed Siti Syaliza Mustapha as its new Chief Executive Officer effective 6 October. 

Siti Syaliza, who was MTCC Officer-in-Charge and Senior Manager (Forest Management) succeeds Yong Teng Koon who retired on 16 July. She is the first woman to take the helm of the Council since it was established in 1999. 


Siti Syaliza is known to many delegates of the International Tropical

Timber Council participated in many Council Sessions and ITTO meetings.


Sabah REDD+

Sabah Chief Conservator of Forests, Frederick Kugan, has stated the Sabah-EU REDD+ Project has successfully raised the living standards in target communities as well as restored and rehabilitated degraded forests. 

The project, which began on 5 December 2013 will conclude on 30 November this year.

The Sabah-EU REDD+ Project is a European Union funded project in Sabah entitled Demonstration Initiative on Community Based Forest Management and REDD Plus, which is part of the EU’s ‘Tackling Climate Change through Sustainable Forest Management and Community Development’ programme.



Indonesian economy records growth

During a press conference on the Indonesian State Budget Finance Minister, Sri Mulyani Indrawati, said economic growth up to the third quarter of 2021 was 3.1 percent, approaching the government’s forecast of 3.7 percent to 4.5 percent for the year.


SVLK promotion needs to be intensified

Indroyono Soesilo, chairman of the Association of Indonesian Forest Concessionaires (APHI), said intensive promotion is needed to encourage global market acceptance of the Timber Legality Verification System (SVLK) applied in Indonesia.

He said that Indonesia had proposed Ambassador Yuri O Thamrin as Executive Director of the International Tropical Timber Organization (ITTO) which, he added can contribute to the promotion of sustainable wood products such those from Indonesia.


Indonesia exports more to US and China than EU

The Indonesian Ambassador to the European Union, Andri Hadi, said demand for Indonesian wood products in the European Union is less than that to the US and China even though Indonesia has adopted the Forest Law Enforcement Governance and Trade (FLEGT) scheme which aims to promote Indonesian products in the EU.

According to him Article 13 of the VPA between Indonesia and the EU which regulates market incentives has not been implemented by a number of EU member states.

In response Patrick Child, speaking for the European Commission, said that with the recognition of the Timber Legality Verification System (SVLK) as a FLEGT license Indonesian wood products can more easily enter the EU market, but the impact does need to be optimised.

He said the European Union will continue cooperating with Indonesia for the benefit of both parties regarding FLEGT including the issue of applying due diligence on wood products that do not have a FLEGT license.

In related news, Indonesia has indicated will take action if the European Union and UK do not consistently apply the Forest Law Enforcement, Governance and Trade (FLEGT) regulation.

The Director General of Sustainable Forest Management of Ministry of Environment and Forestry (KLHK), Agus Justianto, in a statement at COP26 said "Our SVLK has obtained a FLEGT license but the European Union is not consistent in applying the FLEGT license system.


SLVK a reference for sustainable commodities

The Ministry of Environment and Forestry (KLHK) said Indonesia's Timber Legality Verification System (SVLK) could be a reference point in efforts to promote the global trade in certified sustainable commodities.

The Director General of Sustainable Forest Management at the Ministry of Environment and Forestry, Agus Justianto, said an accountable verification system that involves multi-stakeholders along with incentives are an option to promote trade in agricultural commodities under the Forest, Agriculture and Commodity Trade (FACT) Dialogue scheme.

The FACT Dialogue is a forum for a number of countries that aims to promote trade in sustainable agricultural, forestry and commodity products to control deforestation and protect forests. Indonesia and the UK are co-chairs of the FACT Dialogue which accommodates the key producers and consumers of commodities, such as beef, soybeans and palm oil.

Simon Sharpe, Senior Adviser - Forest Governance, Markets and Climate (FGMC) Programme Department for Environment Food and Rural Affairs (DEFRA) UK, is reported to have said based on the experience of FLEGT and SVLK Indonesia market acceptance of certified sustainable products is still low.


Innovative and sustainable Lightwood – opportunities in international markets

Setyo Wisnu Broto, chairman of the Indonesian Lightwood Association (ILWA) has reported export demand for wood commodities began to increase in line with the recovery of the global economy. 

He said that at the beginning of the pandemic demand for wood in export markets fell by around 70 percent compared pre-pandemic levels.

He said demand for plywood products to the US is currently very strong and demand in the EU markets is also starting to rise.

However, currently exporters are facing problems due to the scarcity of containers for shipping lightwood to some countries. Break-bulk shipping has been tried but this is only successful in the US said the ILWA chairman.

In related news the Director General of National Export Development, Didi Sumedi, said the Ministry of Trade is committed to support the production and innovative marketing of sustainable lightwood products. 

Through the lightwood trade Indonesia can change its image from a tropical wood producer to an innovative and sustainable timber producer.

Didi gave five reasons why Indonesia's lightwood offers a great opportunity.


•First, through the SVLK, Indonesia is the only country with the timber legality verification system accepted by the EU FLEGT which makes Indonesian light wood products more attractive to consumers in European countries.

•Second, the Indonesian timber industry has moved from natural forest harvesting to plantations.

•Third, Indonesia has pioneer companies that are able to produce innovative light wood products.

•Fourth, light wood production supports the rural economy through providing employment and lightwood growing and sales.

•Fifth, sengon and jabon (lightwood species) can grow quickly and can be harvested within five years.


The development of lightwood has received a boost through cooperation between three international organisations namely the Swiss Import Promotion Program (SIPPO) and Fairventures Worldwide and the German Import Promotion Program (IPD) which will assist with the development of lightwood growing and product development.


Carbon trading regulation adopted

Indonesia has passed a much-anticipated regulation that sets a price on carbon emissions and creates a mechanism to trade carbon. 

Details of Indonesia's regulation are not yet available but based on its draft companies will be allowed to sell carbon units if they comply with the reporting and recording procedures for inclusion under the Environment and Forestry Ministry's national registry.

Carbon trading will be done through a bourse in Indonesia and levies will be charged on transactions.


Furniture SMEs assisted with marketing to the UAE

Small and medium enterprises (SMEs) assisted by the Ministry of Trade are participating in an Export Coaching Programme and one SME from Semarang, Central Java has successfully expanding furniture exports to the United Arab Emirates (UAE).

The Director General of National Export Development at the Ministry of Trade, Didi Sumedi, said in a statement "Despite facing restrictions due to the ongoing pandemic, the number of new export players is increasing. We congratulate this company for successfully exporting to the United Arab Emirates”. The UAE is a non-traditional market for Indonesia but can be important as it is a hub to enter other Middle East regions.


Furniture and Craft SMEs encouraged to export

Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI), Abdul Sobur, said the Association supports furniture and craft SMEs with exporting emphasizing that the export market is not only for large companies but can also be penetrated by the furniture and craft SMEs.

He added that Indonesia has abundant raw materials for the manufacture of wood products along with many skilled craftsmen so this industry can become a formidable exporter.


Businesses committed to sustainable peat management

Forestry and plantation businesses in Indonesia are committed to implementing best practices by applying research and development results to ensure that peatlands can be managed sustainably. 

Chairman of the Association of Indonesian Forest Concessionaires (APHI) Indroyono Soesilo said the challenges faced in peat management include water and carbon stocks, subsidence and fire prevention.

According to Indroyono the application of best practices for peat management is expected to support the availability of wood raw materials to supply the industries in the country.



Foreign Investment

According to the local media the Yangon Region Investment Committee approved investments by two foreign enterprises and two domestic businesses in the manufacturing sector with an estimated capital of US$6.1 million and K8.64 billion respectively. 

This investment is expected to generate over 2,500 jobs. To simplify the verification of investment projects, the Myanmar Investment Law allows Regional and state Investment Committees to grant permission for local and foreign proposals where the initial investment does not exceed K6 billion (around US$5 million).



Wood product price indices unmoved despite high inflation

The Ministry of Commerce and Industry has reported the official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for September 2021 increased to 133.8 from 133.0 in August.

The index for manufactured products which account for almost 65 percent of the overall index increased to 136.0 in September 2021 from 135.9 for August 2021. Out of the 22 groups of manufactured products 17 saw increased prices; four groups witnessed a decline and for two groups the prices remained unchanged in September 2021 as compared to August 2021.

The increases in prices were mainly contributed by basic metals; food products; chemicals and chemical products; machinery and equipment; motor vehicles, trailers, semitrailers; and fabricated metals. The price indices for wood products remained largely unchanged except for a slight rise in the index for sawnwood.

The annual rate of inflation in September was almost 11 percent higher over September 2020. The high rate of inflation in September 2021 was primarily due to rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum and natural gas, chemicals and chemical products.


Consumer confidence slowly recovering

Consumer Confidence of Urban Indians improved in October according to the Refinitiv-Ipsos India Primary Consumer Sentiment Index (PCSI). 

Amit Adarkar, CEO of Ipsos India writes on the company website “Consumer Confidence has improved in October and notably in the two key areas of personal finances and investments for the future. This augurs well for the festival season as consumers do not feel strapped for funds to splurge and enjoy the festival time. Confidence around the economy has seen a minor uptick and it’s understandable as the economy will take a longer time to repair and recover, due to the long-term impact of the pandemic.

Confidence in employment opportunities is, however, downbeat and this needs special focus both by the government and the private sector as improved job outlook is critical to sustainability of demand.”


Rising demand for furniture

A report by Pricewaterhouse in collaboration with IKEA shows that as the Indian economy recovers from the impact of Covid--19 furniture demand is rising. 

In the five years up to 2019, furniture consumption was growing close to 10 percent annually.

This growth was fuelled by increasing urbanisation, a large and young population and expanded middle class with rising levels of disposable income as well as a strong hospitality sector. However, the report also points out that if the furniture sector is to regain its growth momentum post Covid- some serious limitations need to be addressed.



Highlights of recent trade performance

Vietnam’s W&WP exports to China in October 2021 is estimated at US$121 million raising the value over the first 10 months of 2021 to US$1.25 billion, up 25.7 percent against the same period in 2020.

Exports of bedroom furniture in October 2021 reached US$53 million, down 77 percent compared to October 2020. In the 10 months of 2021, exports of bed-room furniture reached US$1.62 billion, up just 1.3 percent over the same period in 2020.

According to statistics from Vietnam General Department of Customs imports of logs from Africa in September 2021 reached 67,870 cubic metres worth US$25.29 million, down 23.4 percent in volume and 23 percent in value compared to August 2021 and down 16 percent in volume and 16 percent in value compared to September 2020.

In the first nine months of 2021, wood imports from Africa reached 757,030 cubic metres at a value of US$276.46 million, down 3.9 percent in volume and 2.2 percent in value compared to the same period in 2020.


Year-end rise in exports to US expected

In spite of the pandemic Vietnam’s W&WP exports to the US in October 2021 reached US$400 million, up 14 percent compared to September 2021, but down 51 percent compared to October 2020.

In general, over the first 10 months of 2021, the W&WP exports to the US amounted to US$7.1 billion, up 27 percent over the same period in 2020.

For the US market, wooden furniture accounted for almost 90 percent of the total export earnings in the first nine months of 2021 (US$5.9 billion, up 41% over the same period in 2020).

Despite the pandemic, most categories of wooden furniture recorded gains in the first nine months of 2021. Exports of wooden seats generated US$2.2 billion, up 69 percent over the same period in 2020 followed by guest and dining room furniture at US$1.7 billion, up 31 percent; bedroom furniture at US$1.3 billion, up 20 percent.

Vietnam's W&WP exports to the US have declined in the past three months due to the impact of the Covid-19 pandemic.  From October 2021, however wood product exports gradually recovered.

In the last 2 months of 2021 W&WP exports are expected to surge to meet the high demand in the US. In the first 8 months of 2021 imports of wooden furniture into the US from all sources reached US$16,9 billion, up 54 percent against the same period in 2020.

Vietnam has emerged as the largest supplier of wooden furniture to the US shipping goods worth US$6.8 billion, up 73 percent over the same period in 2020 and contributing 41 percent of the total value of wooden furniture imported into the US.

Wooden seats, guest-room, dining-room and bed-room furniture are the top wooden products Vietnam has been exporting to US.

With the agreement of the two governments to end the USTR investigation of Vietnam’s wood imports exports of wooden furniture made in Vietnam to the US are expected to increase in the years to come.



Exports pulled down

A key gauge of business conditions in Japan, the Coincident Index, fell in September, marking the third decline in a row as car production and exports slumped.

Cabinet officials said the pandemic made it difficult to obtain car parts from Southeast Asian suppliers and this led to a drop in production and exports. Both retail and wholesale sales remain flat despite the lifting of most restriction in October as the country has seen a sharp drop in new virus cases.

Looking ahead the Cabinet Office downgraded its assessment of the index to ‘weakening" from ‘improving’. The leading index of business conditions, forecasting the situation in the coming months, fell 1.6 points to 99.7 in September, down for the third consecutive month.


New stimulus package to be announced

The government is set to approve economic stimulus measures that will exceed US$350 billion, a sharp rise from its initial plan due to the inclusion of cash handouts. 

Under the Covid--19 relief measures, there will be Yen 100,000 handouts in cash and vouchers for children aged 18 or younger as well as aid for students facing financial difficulties.

The package will also include financial aid of up to yen 2.5 million for businesses suffering from plunging revenues due to the virus spread. Restarting the government's ‘Go To Travel’ programme, intended to subsidise travel spending to help the coronavirus-hit domestic tourism industry will also be among the stimulus measures. 

The earlier go-to scheme was suspended amid the rapid spread of infections.


Retail sales trend higher as infection rate drops

Consumers responded to the sharp decline in the rate of infections and spending rose with retail sales regaining some lost ground in September. The Ministry of Economy, Trade and Industry reported sales gained 1.2 percent in the September quarter compared with three months earlier, the fastest increase in a year.

The strong gain suggests overall consumption, the biggest component of the economy, may not have declined in the September quarter as much as feared.



October GGSC-CN Index Report

In October 2021 China's PMI index registered 49.2 percent, a decrease from the previous month, the second consecutive month of decline indicating that the growth in manufacturing slowed. 

In October, domestic orders for most timber manufacturing enterprises increased and production increased, but international orders have declined.

Due to the rapid rise of domestic energy prices, the price of chemical raw materials has risen sharply and enterprise costs have risen again. Most enterprises can only absorb these increases for a short time. 

The GGSC-CN comprehensive index for October registered 56.2 percent (44.2% in October 2020 and 48.9% in October 2019). The October level was above the critical value of 50 percent, indicating that the operation of the forest products enterprises represented in GGSC-CN index expanded from last month.


RCEP coming into force

The Ministry of Commerce has issued a notice announcing six ASEAN member countries (Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam), four non-ASEAN member countries (China, Japan, New Zealand and Australia) have formally submitted their written authorisation for ratification of the Regional Comprehensive Economic Partnership (RCEP). 

RCEP will come into force for these ten countries on 1 January 2022.

The Regional Comprehensive Economic Partnership (RCEP) was initiated by ASEAN in 2012 and has taken eight years to formulate. 

In November 2020, the Fourth Regional Comprehensive Economic Partnership (RCEP) Leaders' Meeting was held via video after which 10 ASEAN countries and 15 Asia-Pacific countries including China, Japan, South Korea, Australia and New Zealand formally signed the economic partnership agreement.

RCEP is a comprehensive, modern, high-quality and mutually beneficial free trade agreement. It is also the world's largest free trade agreement in terms of population, economic scale and development potential.

RCEP countries have an economic output of US$25 trillion roughly 30 percent of global gross domestic product, population and trade and more than the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. 

The Ministry of Commerce says implementation of the RCEP will encourage other member states to expand trade and investment cooperation with China, share the Chinese development dividends and achieve mutual benefit and common development.


Zero tariff for China’s multi-layered wood flooring

The US Department of Commerce recently announced its final judgment on the eighth annual review of anti-dumping and anti-subsidy investigation on multi-layered wood flooring from China. 

Jiangsu Senmao Bamboo & Wood Industry, as a compulsory respondent enterprise, secured a zero anti-dumping duty rate of American wood flooring.

Jiangsu Senmao Bamboo and Wood Industry was founded in 2006. The company is an export-oriented enterprises trading solid wood composite flooring products. The main export markets are the US, Canada, Australia, Mexico and the UK.


Investment in Mexico

Zhongyuan Home Furnishing recently issued a notice on the establishment of overseas subsidiaries to invest in production in Mexico.

According to the announcement, Zhongyuan Home Furnishing intends to establish a subsidiary Zhongyuan Mexico in Mexico through the joint investment by its wholly-owned subsidiary Zhongyuan International and Hong Kong Kaimao. 

The total investment is around US$20 million.

It has been reported that the Mexican subsidiary will be fully responsible for the project construction and operation management of production base in Mexico. The company's business plan includes production and sales of hardware products, electronic products and home furnishing products.


Relocation of Taicang wood processing enterprises

A 100 day initiative in Tancang City, Jiangsu Province earlier this year resulted in many enterprises being relocated or closed. 

Many timber processing and trading enterprises that operated in Tancang City have transferred to Xinminzhou in Jiangsu Province, Lanshan District of Rizhao City in Shandong Province and Jiangdu District, Yangzhou City, Jiangsu Province. However, there said to be problems such as insufficient port capacity. 

Analysts say it is urgent to upgrade the production to create a sound industrial base.

Taicang City still has more than 300 enterprises engaged in timber trade, processing and logistics services of which there are about 120 timber trade enterprises and 130 log processing enterprises.


Guangxi, the largest timber producer in China

Guangxi Zhuang Autonomous Region has been the largest timber producer and surpassed the Northeast Region of China in 2006.

The total output of timber in China in 2019 was 100.46 million cubic metres of which Guangxi topped the list with production of 35 million cubic metres.

Timber output in the Guangxi Zhuang Autonomous Region fell four percent to 33.6 million cubic metres in 2020, but the proportion of Guangxi timber output remained unchanged and ranked number one in China. Demand for wood products slowed in 2020 and domestic timber production declined to 87.27 million cubic metres, down 13 percent year-on-year.

Eucalyptus dominates the forests of Guangxi. Data show that 80 percent tree species of forest logging in Guangxi is eucalyptus.

The latest statistics also show that Guangxi's forest area was 14.87 million hectares, including 9.07 million hectares of plantation. The planting area of eucalyptus is two million hectares.


Property tax pilot scheme to be extended

China’s legislative body has approved plans to expand a property tax pilot project to more urban areas across the country but the cities to which the pilot will be expanded have not been announced. 

It is reported the pilot project will be conducted over the next five years and levy taxes on all residential and non-residential properties in pilot areas, excluding rural households, according to the report.

According to the decision the aims is to advance the property tax legislation and reform in an active and prudent way, guide the rational housing consumption and the economical and intensive use of land resources and facilitate the steady and sound development of the country's property market.


Substantial increases in wood panel production costs

Because of the government’s power rationing policy production in the wood-based panel sector and others is being disrupted and output lost which has raised the cost of production. 

The timber industry is concerned as it sees energy cost rising. Coal prices continue to rise pushing up power charges and this is translated into rising production costs as output declines.

According to a recent survey in Dongguan City, Guangdong Province it was founded that many enterprises in the furniture and flooring sectors are experiencing rising costs of production.

Dalingshan Town has more than 500 furniture and supporting enterprises. Many enterprises have increased the sales prices of their products by between 8 to 20 percent.

The cost increase is due to rising raw material inputs. Prices for paint, wood and other raw materials have increased 25 percent to 30 percent since 2020 and this is undermining the profitability of the companies.

Local experts point out that the price increases are the result of a combination of many factors among which the shortage of imported raw materials caused by Covid--19 and the increase in shipping and transport costs.


China’s wood product Standards

By the end of August this year, China had released 273 standards on wood products including 140 national standards and 133 industrial standards on timber for construction products and sawnwood for structural use.

The Standard system is basically the same as that of the international and developed countries. China has adopted 23 ISO international standards and foreign advanced standards which cover 22 percent of the total national timber standards.

The Standards such as the Names of Main Timbers in China (GB/T 16734), Names of Main Imported Timbers in China (GB/T 18513) and Chinese Redwood (GB/T 18107) have been widely used and effectively promote the healthy development of the timber trade.

In order to meet market requirements, a number of standards such as ‘Rotary Veneer Log’, ‘Slice Veneer Log’ and ‘Sawnwood for Instrument’ have been revised and have played a role in the realisation of an efficient and regulated market.


‘Green’ wood industry

Yulin City was recently awarded the title of ‘Capital of China Green Wood Industry’ by the China Wood Protection Industry Association. 

A booming development trend has been seen in the ‘green’ wood industry in Yulin City, Guangxi Zhuang Autonomous Region especially in the furniture sector. 

Yulin City deserves this title as forestry resources are abundant with forest area of 830,000 hectares and a forest cover of 62 percent, wood production of more than 10 million cubic metres which provides adequate timber raw materials.

At present, there are 1,832 forest products enterprises in Yulin City, including 275 plywood enterprises and 835 furniture enterprises. The output value of wood panel furniture is nearly RMB20 billion in 2020.


Intelligent manufacturing and digital transformation for building materials

Efforts are being made by Raw Materials Industry Division under the Ministry of Industry and Information to encourage development of intelligent manufacturing and digital transformation for building materials.

The ‘Green’ Wood Panel Branch in the China Wood Protection Industry Association (CWPIA) is collecting examples of wood-based panel and wood home furnishing intelligent manufacturing and digital transformation in order to promote change across the wood-based panel and wood home furnishing sectors.


Ultra-thin fibreboard arrives

The first ultra-thin fibreboard panels were successfully rolled off the production line of the Shandong Xingang Enterprise Group mill.

This production demonstration plant for ultra-thin fibreboard is located in Yitang Town, Lanshan District, Linyi City of Shandong Province, the Capital of Wood Industry and extends over an area of nearly 10 hectares with a total investment of RMB405 million. 

At full capacity, the mill can achieve an annual output of 180,000 cubic metres of ultra-thin fibreboard.

This project has adopted first-class international equipment and technology and is one of the mills producing the thinnest thickness and fastest production speed in the market at present. 

Output includes 0.8-8.0 mm formaldehyde free, flame retardant and waterproof ultrathin fibreboard that can be used as base for decorative veneer. This thin board can also be used for packaging and other end uses so has a broad market prospect.

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