Estimates suggest 70 per cent of wood processing mills in China have closed

The focus of attention of the environmental regulators has, according to media reports, turned to cabinets and panel factories in 34 provinces, municipalities and autonomous regions. Nearly 3,000 panel factories in Wenan County, Langfang City, Hebei Province have been told to cease operation. This will seriously affect the domestic panel market and the jobs for the around 10, 000 employees, reported ITTO.

The new environmental regulations have impacted many wood processing mills in the Manzhouli, Suifenhe and Erlianhot areas, which have stopped production. Some have closed their business entirely while others have relocated and this has altered wood product distribution channels.

At present, Hebei Province is investigating the many small scattered and polluting enterprises. Small panel factories are given the option of relocating or upgrading to satisfy the environmental regulations. It is reported that 1,274 panel enterprises were told to cease operation.

Local experts have confirmed that a large number of small and medium-sized panel factories across Jiangsu and Zhejiang Provinces have closed because they could not afford to retool or relocate.