The current and future of Chinese plywood industry

Since the 21st century, the plywood industry in China develped really fast and became the largest consumer and producer of plywood in the world.

The industry had three major changes:

  • The log source switch from national forest land to private forest land.
  • Private enterprise are playing a bigger role in plywood business.
  • The production material switched from hardwood to fast growing softwood.

Nowdays the materials are facing shortage and rising price. Also more strict standards should be followed by the manufacturers. Below is an interview with an official from government office.

Q: What’s special in our plywood industry development?
A: Currently, the whole amount is growing and the manufacturers are gathering in geography. The plywood is about 38.55% of the whole wood based panel kinds in China. The production is mainly in Hebei, Shandong, Jiangsu, Zhejiang, Guangdong and Guangxi Province. The four major production base occupy 70% of the whole yield of plywood in China

Q: There are a too many plywood manufacturers now, what do you think is the major problem?
A: The scale of the business is too small and product is too simple. They have limited cash flow so most of them would mainly manufacture for the trading companies. Once there is a slow down in plywood product, it will be hard for them to continue.
Also, these manufacturers produce medium and low quality products which is not good for the image for Chinese products. The profit is very low.