Massive restructuring effort in China to eliminate outdated and polluting wood processing mills

The restructuring effort in China has resulted in as many as 3,000 plywood mills being shut down across the country by the end of 2017.

A total of 621 fibreboard production lines were dismantled or closed down, eliminating over 20 million cubic metres of production capacity. However, fibreboard output had rebounded within a year. 

More than 900 particleboard production lines were also relocated or shuttered, reducing the installed production capacity by around 17 million cubic metres. Overall, 2017 saw a 15 per cent decline in the number of wood-based panel enterprises. 

Smaller companies were the ones hit by these changes while larger and medium-sized companies actually benefitted from it. By the end of 2017, production capacity had consolidated in fewer but larger enterprises, resulting in an increase in cross-industry mergers and acquisitions within the industry. 

The end of 2017 also saw 117 continuous flat pressure fibreboard production lines across the country with an annual production capacity of 19.4 million cubic metres, making up 41 per cent of the national total production capacity of fibreboard. There were also 40 continuous flat pressure particleboard production lines in operation. 

Source: ITTO MIS Report