China: Pizhouís government pushes for development of panel industry
Pizhou City of Jiangsu Province is one of four major
national wood-based panel processing bases. There are
more than 3,000 wood products processing enterprises and
more than 2,200 downstream production lines worth
RMB16 billion yuan in output value. Forest industryís
contribution to revenue and farmersí incomes at the
national level is 20% and 25%, respectively. In responding
to the economic slowdown, Pizhou Cityís government has
taken measures to enhance its international
competitiveness and capability to mitigate risks using a
variety of approaches.
First, Pizhou City has strengthened its industrial raw
materials forest base. The area of industrial raw materials
base in Pizhou has expanded rapidly. Currently, poplar
stocks in the City total 2.8 million m≥ to guarantee
sustainable development of Pizhouís forest industry.
Second, leading enterprises are supported by new
technology. The Pizhou government has implemented
strategies for developing large-scale forestry industries as
driving forces of the economy, to accelerate technology
development and expand the scale of production.
Third, the City has worked to keep the international
market stable and expand the domestic market. Pizhou
wood-based panel exports make up 70% of the national
total and are popular in Europe, America and Asia. In
order to keep international cooperation stable, the Pizhou
government has set up representative sales offices and
established selling agent relationships with companies in
the US, France, Germany and South Korea, as well as 10
stable export ports. The Pizhou government is expanding
its domestic market, establishing new sales offices in 12
big and middle size cities, and setting up 40 websites for
small and medium-scale enterprises to strengthen the
exchange of market information on wood-based panels.
Hunchun gains from booming European plywood sales
Plywood enterprises have been an important contributor to
the development of the economy in Hunchun and the
cityís plywood exports have continued to grow in recent
years. According to statistics from the Hunchun Exit-Entry
Inspection and Quarantine Bureau, during January to
November 2008, Hunchunís plywood exports were 58,800
m≥ valued at USD69.58 million, up 12% by volume and
23% by value from the same period in 2007. Of the total,
nearly 90% of plywood was exported to Europe,
amounting to 51,300 m≥ by volume and valued at
USD59.96 million, up 16% by volume and 33% by value,
respectively, from the same period in 2007.
Foreign investment enterprises are the main drivers of
plywood exports. During January to November 2008,
plywood exports by foreign enterprises were 37,400 m≥
and worth USD44.17 million, an increase of 18% by
volume and 38% by value from the same period in 2007.
Plywood exports by state-owned enterprises amounted to
20,400 m≥ by volume and valued at USD25 million,
were 841 m≥ and worth USD0.26 million.
Hunchun City is located in the lower reaches of Tumen
River in the southeast of Jilin Province, the geometric
center of the Northeast Asian region and borders the
China, North Korea and Russia. The City has developed
substantial transportation infrastructure, including a
highway and a railway port connected with Russia and two
highway ports connected with North Korea.
Guangdong furniture exports jump 27% in 2008
According to statistics from Chinaís Customs, furniture
exports through Guangdong Port in 2008 rose 27% to
USD11.763 billion. Overall furniture exports through
Guangdong Port in 2008 rose 55% to USD8 billion.
Furniture exports by foreign enterprises dominated the
trade and grew 6% to USD5.38 billion, accounting for
46% of furniture exports. Furniture exports by private
enterprises rose significantly (77%) to USD4.74 billion.
Furniture exports by state-owned enterprises increased
11% to USD1.31 billion.
The US and EU were the main destinations for Guangdong
furniture. However, furniture exports to the US rose
slightly by value (2%) to USD4 billion, while exports to
the EU grew substantially (33%) to USD2.4 billion. The
value of furniture exports to the two markets made up 55%
of Guangdongís total. In addition, furniture exports to the
Russian Federation, ASEAN, the UAE and Saudi Arabia
rose markedly, amounting to USD810 million, USD660
million, USD310 million and USD230 million,
respectively from 2007.
Economic downturn leads to closure of 7000 furniture
From January to October 2008, about 7,000 furniture
enterprises were closed, reported China Wood
International. Nevertheless, some enterprises made plans
to expand, with IKEA planning to open 10 new stores in
2010 and Markorhome increasing its stores from 29 to 40
before 2010. The China Association of Building and
Decoration Industry also reported the decorative market
was worth RMB680 billion in 2008, and the distribution
value of Chinaís furniture industry fell nearly 30% in 2008
from 2007 levels.