The China National Forest Products Industry Association states that 5,435 plywood mills will close, eliminating outdated capacity.
The remaining will be renovated to upgrade technology, improve management, and increase social responsibility. Some analysts note that news of major capacity cuts can be misleading as overall output continues to grow.
Enterprises in the main wood based panel production bases such as Shandong Linyi and Heze cities, Jiangsu Pizhou cities which can satisfy environmental regulations and have an important role in maintaining jobs will be allowed to resume production, says the TTM Report.
Linyi city is home to the largest wood based panel production plants and annual output exceeded 45 million m3 in 2016 accounting for over 50% of the national wood based panel output. Some 40% of the production from this area is exported.
