The Establishment Of China's New Epicenter For The Timber Industry.

Mar 20, 2024

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The Global Timber and Wood Products Conference 2023 opened in Rizhao on July 5th. More than 600 guests, including representatives from 14 countries and regions, timber traders, certification agencies, domestic wood industry enterprises, and research institute leaders and experts, gathered in Rizhao to explore the global timber market and promote industry development.

 

During the opening ceremony, a project signing ceremony was also held. Five projects involving Lanshan District were signed, including the annual production of 50,000 pieces of smart furniture for teenagers, plywood warehousing and trading in Lanshan, and the development and production of 2,000 sets of outdoor gardens and ancient architectural products.

 

"The choice of Rizhao as the host of this conference was primarily motivated by its advantageous location. Rizhao Port in Shandong has become a national hub for timber imports after years of rapid development. Rizhao Port handles 12% of the imported timber in China and radiates nationwide from its central point," said Li Jiafeng, President of the China Timber and Wood Products Distribution Association. He emphasized that the good industrial foundation, efficient logistics system, and immense development potential were important factors in selecting Rizhao as the conference venue.

 

"After 18 years, the timber industry in Lanshan District has evolved from having only 7 people to tens of thousands of individuals involved. The industry has continuously expanded in scale, improved its supply chain, and accelerated its development to higher levels. Regarding investing in the timber industry, Lanshan is the best choice," introduced Zhou Shengyuan, the district head, to the attendees during the opening ceremony.

 

The timber industry has become a prosperous industry in Lanshan District, thanks to the advantages offered by the port. In 2005, seven Fujian businessmen came to Lanshan to invest in the timber industry. At that time, there were only a few small workshops and rudimentary production lines that were loosely connected to the timber industry. However, these Fujian businessmen recognized the development potential of the industry by leveraging the port and logistics advantages in Lanshan.

 

Chen Lihuang, the General Manager of Rizhao Guantong Wood Industry Co., Ltd., which is one of the seven Fujian businessmen, has witnessed the transformation of Lanshan's timber industry. "Over the years, I no longer feel like an outsider. I consider Rizhao as my home," said Chen Lihuang. In just over ten years, he has witnessed the growth of a large industrial chain from nothing to something significant.

 

From its modest beginnings to its current grandeur, Lanshan District has achieved the highest import volume and processing volume of timber among all coastal ports in China for several consecutive years. It has become the largest port for imported timber, with significant influence both nationally and globally. It is renowned as the "Capital of China's Emerging Timber Industry."

 

Currently, Lanshan Port has nine specialized timber unloading berths with an annual capacity of 10 million cubic meters. Its business covers more than 30 countries and regions, including Russia, New Zealand, the United States, Canada, Brazil, Uruguay, Germany, Poland, and others. The port has the only national-level timber quarantine and pest control area in Shandong Province, 400 drying kilns with an annual drying capacity of 800,000 cubic meters, five large specialized timber yards, and multiple backup yards with a combined one-time storage capacity of 1.2 million cubic meters. It has also established a convenient timber import channel that integrates port unloading, customs clearance, inspection, measurement, warehousing, and transportation.

 

In 2022, Lanshan Port imported 9.15 million cubic meters of timber, a growth of 14% compared to the previous year, accounting for 21.05% of the national timber import. It became the largest timber import port in China for the first time. From January to June this year, Lanshan Port imported 5.18 million cubic meters of timber, an increase of 7.1%, with 680,000 cubic meters of timber imported in containers.

 

Leveraging its advantages in timber imports near the port, Lanshan District has rapidly built a timber industry cluster. There are now over 400 timber trade and processing enterprises, forming a thriving timber industry. Among them, there are more than 360 timber processing enterprises, equipped with over 700 large saws, with an annual processing capacity of 7 million cubic meters. The annual trade and processing output value has surpassed 10 billion yuan, directly employing more than 20,000 people. A mature chain from timber import, sawing, drying, deep processing to comprehensive utilization of waste has been established, with the products radiating to the southern part of Shandong, northern Jiangsu, as well as Henan, Shaanxi, Shanxi, Gansu, Sichuan, and other regions.

"The Chairman of Qian Nianshou Group, Lu Tonghua, who attended the conference, said: 'Through nationwide research, we discovered that Rizhao has unique geographical advantages as the hub connecting land and sea, enabling the aggregation of global resources and subsequent global distribution. Establishing factories in Rizhao allows us to leverage these advantages and reduce production costs, so I chose to invest in Rizhao. We plan to continue investing in Phase II and Phase III projects, starting from timber processing to the production of prefabricated building materials, and maximizing the utilization of by-products, so that no waste is generated from the moment timber enters the factory, creating high-value products.'"

 

"In the coming years, Lanshan District will aim to build a nationally recognized low-carbon integrated zone for timber import, trade, and processing. It will adhere to a green, intensive, and innovative development approach, accelerate the transformation and upgrading of the industrial park, amplify the agglomeration effects of advanced timber processing industries, and establish the largest furniture and home improvement material center in northern Jiangsu and a significant domestic center for prefabricated timber structures (including historical garden architecture).