24 | China


Vietnam), the development of the Chinese panels sector began with the launch of the first commercial MDF line at Fuzhou Wood-Based Panel Factory in February, 1982 (although the first small-scale productions had already started in China at the beginning of the 1960s). According to Wang Gaofeng, that first factory ran on equipment delivered from the US and had the capacity to produce approximately 50,000m3


of MDF per year. During the 1980-1990s the Chinese


wood-based panel market – especially the particleboard segment – often suffered from poor product quality, low ecological


standards (high formaldehyde emissions) and low sales, which significantly complicated the development of the industry. However, the situation changed during the 2010s, when the industry began the active adoption of modern production standards and technologies, a move that led to exponential growth. According to data from the China Forest Products Industry Association, at present there are more than 1,200 wood-based panel production lines in the country. Among them are plywood, particleboard and fibreboard lines, accounting for 50%, 30% and 20% of


the market share respectively. At present the annual output of fibreboard production in China is estimated at 64-66 million m3


, while


the production of particleboard is in the range of 41-43 million m3


.


In terms of structure, the industry consists of about 12,000 companies, most of which are small and medium-sized businesses. The number of large companies is about 200 and, according to China’s Wood-Based Panels’ Industry Report 2023-2024, at present there are 12 enterprises in China with a total production capacity of more than 1 million m3


, of which seven have a capacity of 1.5 million m3 and more. Among


the largest local players are Fenglin Group, Daya Shengxiang, Youngan Forestry, Pingtan Development, and Zhengyuan Shares. In 2024 the growth of the industry was


approximately 2.25-3%, which is generally comparable to the pre-pandemic growth rates for about 10 years. The industry is currently undergoing a period of transformation, which is caused by its ongoing move towards sustainability. As local consumers pay more and more attention to environmental protection and health, China’s wood-based panel industry has begun to focus on optimising product structure, paying more attention to R&D activities and promoting formaldehyde-free and low-formaldehyde products. In addition, the application of bio-based composite materials and renewable resources is also increasing, providing new impetus for the sustainable development of the industry. Particleboard production has trended


upwards at the expense of energy-intensive MDF production in recent years. As for domestic players, in recent years many of them have introduced new technologies in their production processes, such as AI, which has contributed to better automation of the production process. In addition, more attention is paid to the better use of traditional raw materials. Given that China’s wood resource base is rather limited, this involves greater use of various alternatives for traditional wood resources, such as biomass materials. According to experts from the Research


Top: Feixian Xiangrong Plate Factory in Linyi City, Shandong Province, which is one of China’s leading producers of panels and plywood Above: Guangxi Fenglin Wood Industry Group Co Ltd


WBPI | February/March 2025 | www.wbpionline.com


Institute of Wood Industry of the Chinese Academy of Forestry, the Chinese government continues to pay more attention to environmental protection, which has led to the introduction of various policies and measures that are conducive to environmental protection in the country’s panels sector. For example, the state plans to strengthen restrictions on the emission of harmful substances, promote the use of environmentally friendly adhesives and coatings, and encourage the circular economy and resource utilisation in the domestic timber and panels industries. Most local analysts expect the ever-


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