China increased fibreboard by 6.7 million m3 in 2007

According to the Chinese Planning and Design Institute of the Forest Products Industry, production capacity increased by 6.7 million m³ (representing about 30% of total fibreboard production capacity in 2006) in 2007. With total announced production increases, China's MDF capacity is expected to exceed 30 million m³ in 2008 and 33 million m³ in 2009. In 2007, construction was started on 18 continuous flat presses and 20 continuous press lines, with most lines expected to come on stream in 2008.

Industry insiders soon expect a large increase in the supply of 2-6mm thickness HDF/MDF. The majority of new projects were initiated in provinces with existing heavy concentrations of MDF capacity, such as Sichuan, Guangdong, Hebei, Shandong, Anhui and Jiangsu. The completion of these projects is expected to greatly increase the demand for raw materials in these and neighbouring regions and could trigger a major round of industry consolidation.
Industry sources indicate that Guangdong Weihua Corporation has officially become the largest fibreboard producer in China, now with more than 1 million m³/year of production. After in-process capacity projects are completed, Weihua’s capacity is expected to reach 1.28 million m³ by the end of 2008.

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