US Dollar Exchange Rates of 15th January 2013
China Yuan 6.3556
Report from China
Forestry sector sees growth despite global
uncertainties
According to information from a recent conference of
heads of national provincial forestry departments, the
total output value of Chinaˇ¦s forest products industry is
forecast to have increased by 21% to RMB3.7 trillion
in 2012.
The Chinese forestry and forest industry sectors
continue to drive development momentum despite
being adversely affected by the weak global economy.
The RMB3.5 trillion output target set by government
for the sectors in the Twelfth Five Year Forestry
Development Plan has been achieved three years ahead
of the schedule.
The output values of the forestry and forest products
sectors in Shandong, Guagndong, Zhejiang and Jiangsu
provinces are expected to have exceeded RMB300
billion in 2012.
Output from the national forests products sector
continued to expand in 2012. It is expected that, when
the final figures are compiled, log output will be more
than 80 million cubic metres, the output of wood-based
panel could reach more than 200 million cubic metres
and the output of other forest based industries could be
as high as 146 million tones.
Plans to further expand forestry sector
The Chinese forestry authorities have pledged to
further promote expansion of the forestry sector. The
following measures have been proposed:
develop and implement ˇ§Forestry products
industry doubling plan during 2013 to 2020
periodˇ¨. This will be through identifying and
supporting major national forestry enterprises,
through national standardisation and through
modern forestry industrial development zones.
continue to improve the planning of forestry
products industry development, strengthening
the industry base, fostering the formation of
forest products industry clusters and
supporting development of specialised
forestry sub-sectors.
Standardise the development of forest
products exhibitions, implementation of a
branding strategy for wood products,
supporting the lead enterprises, universities,
colleges and research institutes to encourage
technological innovation and strategic
alliances throughout the forest products
industry and promoting the upgrading of the
industrial structure.
increase support for the wood extractives
industry and forest biomass energy industry,
support the development of emerging
industries such as forest tourism, flower
commercialisation , bamboo and rattan
product improvement and promote a strategic
reserve base in construction timber.
strengthen the monitoring of forest product
quality, establish a forecasting and early
warning mechanism and create an information
delivery platform for the sector.
Chinese association pilots work on legality
verification
A second Forest Products International Trade Forum
was held recently in Nanning, Guangxi, Zhuang
Autonomous Region. At this gathering the China
National Forest Products Industry Association
(CNFPIA) launched its pilot Legality Verification
Standard, and signed agreements with 8 association
members committed to using the new standard. This
marks an important step in efforts by China to verify
the legality of the raw material used in the industry.
The piloting of the new standard will be conducted
over a 12 month period and a total of 30 timber
enterprises will participate.
The procedure for verification involves association
members applying for membership of the CNFPIA
scheme after which the enterprise signs a selfdisciplinary
pledge with CNFPIA. When this initial
step is concluded the enterprises will be issued with
verification certificates for various products and given
authority to use a logo ˇ§Legal Timberˇ¨. This logo will
confirm that the company is registered with the
CNFPIA and has fully implemented the legality
verification standard.
Advocates of the new verification standard say that this
will promote the sustainable development of Chinaˇ¦s
international trade in wood products, combat illegal
logging, maintain Chinaˇ¦s international image,
strengthen the competitiveness of enterprisesˇ¦ as well
as help enterprises respond to new requirements and
challenges in the international market.
New branch association formed
It has been reported that a new branch of Chinaˇ¦s
Timber and Wood Products Distribution Association
was established in April 2012 after approval was
granted by the Ministry of Civil Affairs.
The China Timber and Wood Products Distribution
Association is a national, non-profit and professional
organization consisting of enterprises and institutions
from trade, research, education and industrial
management, social groups, experts and scholars. One
aim of the association is to forge a bridge between
government and timber enterprises.
The new branch has a wide range of activities such as:
providing information on national policies and
on timber import and export regulations,
strengthening self-discipline in the sector,
safeguarding legitimate rights and interests of
timber importers and exporters,
providing information on domestic and
foreign timber trade policies and timber
distribution and stocks
providing technical services promoting
establishment of responsible procurement
policies within industry,
participation in the legality verification
scheme
advising government on technical standards
for the industry,
conducting credit rating evaluation for
enterprises
conducting certification work
implementing technical and operational
training courses,
managing conferences and encouraging
international cooperation and exchange
Rubberwood development in Hainan
Rubber plantations are found in the Hainan, Yunnan
and Guangdong provinces of China. The area of
rubberwood plantations is reportedly around 750,000
hectares, of which 52% is in Hainan Province, 43% in
Yunnan Province the balance is in Guangdong
Province.
Hainan island, the most southerly province in China,
fall in the tropics and has rich tropical forest resources
as well as rubberwood plantations.
Wood based enterprises in Hainan Province provide
rubberwood sawnwood, laminated timber,
particleboard, plywood, veneer and furniture. Hainan
rubberwood furniture is exported to the USA, EU and
marketed regionally.
The planting of commercial rubber in Hainan began in
the 1950s but the boom years for development of the
rubber processing industry was during 1980s to 1990s.
In 1998 the production of rubber sawnwood, plywood
and MDF reached 400,000 cubic metres, 20,000 cubic
metres and 39,000 cubic metres respectively.
The annual average output of provincial rubberwood
products was 350,000 cubic metres from 1988-1997.
According to the available data, currently annual
felling produces around 800,000 cubic metres but this
is insufficient for the installed capacity in the industry.
At present there are about 100 enterprises processing
rubberwood in Hainan. Most of these enterprises are
small and most use low technology processes. This,
combined with the age of the processing plant, results
in output of low quality products.
Sawnwood is the main product sold, the output of high
value rubber wood products such as laminated board
and veneer is limited.
Much of the rubber plantations in Hainan are managed
by Hainan Rubber Industry Group Co. Ltd, a leading
agricultural enterprise. The company comprises 12
subsidiaries involved in finger-jointing, solid wooden
door manufacture, cabinet and furniture manufacture
and veneer.
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