To increase output, China pushes sawmills to invest in countries with abundant forest resources.
San Francisco, CA (PRWEB) April 20, 2013
Revenue for Sawmills in China is set to reach $10.4 billion in 2013, reflecting 16.6% annualized growth over the past five years, says IBISWorld. The rapid development of China’s real estate market has created huge demand for construction wood, wood for decoration, and wood furniture. Meanwhile, the rapid development of transportation infrastructure has raised demand for special timbers and sleepers.
Almost all the timber and sleepers manufactured in China are sold in the domestic market. Due to inadequate supply, low quality, and the uneven distribution of Chinese forest resources, demand for industry products surpasses supply, says IBISWorld. As a result, imports of sawmill products have been increasing faster than industry revenue and satisfy over a fifth of domestic demand.
In the twelfth five-year planning period (2011 to 2015), the Chinese government continues to boost domestic investment in the Sawmills industry and encourage Chinese enterprises to invest in countries like Russia with abundant forest resources. Several pilot reform projects related to processing imported logs and exporting finished products have already been approved, says IBISWorld. Such projects support sawmill development by reducing production costs and yielding overseas revenue. With favorable policies and lower purchase costs, top enterprises like Rizhao Huada Investment Development, Yantai Northwest Forestry, Shandong Hailan Import and Export Corporation, and Qingdao Westwood Lumber are expected to increase market share in coming five years.
For more information, visit IBISWorld’s Sawmills in China industry report page.
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IBISWorld Industry Report Key Topics
The Sawmills in China industry comprises establishments that saw raw logs lengthwise into lumber of standardized width and depth with sawing machines or manipulative devices. They also process lumbers chemically in preservatives and other soaks, and manufacture rough floorings.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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