Zhangzhou Wood Industry in Fujian: From Traditional Manufacturing to a 100 Billion Yuan Cluster

Source: China Green Times

The wood industry is quite strong in Zhangzhou, Fujian.

In 2024, the Pinghe County Government of Zhangzhou City commended 37 industrial enterprises with per-mu tax revenue exceeding 200,000 yuan and total tax revenue exceeding 2 million yuan. Among them, 35 were wood industry enterprises, accounting for 95%. In 2024, the city had as many as 535 wood industry enterprises above designated size, with a total output value exceeding 70 billion yuan.

In recent years, Zhangzhou City has attached great importance to the development of the wood industry, leveraging its forest resources and geographical advantages, focusing on the construction of "three chains" (industry chain, value chain, service chain), and promoting the development of the wood industry through clustering, branding, and globalization to achieve a double increase in quality and efficiency.

Semi-mechanized production workshop

Industry Chain, Enhancing Cluster Efficiency

In the 1990s, Plywood The industry expanded rapidly, with over 2,000 plywood factories in the city at its peak. Overcapacity forced enterprises to transform and upgrade. In 2015, Zhangzhou launched a special rectification campaign for the plywood industry and the planning and construction of industrial parks, shutting down over 1,500 "three-no" enterprises (enterprises without licenses, safety standards, or environmental protection measures), eliminating outdated production capacity, and using the development of new technologies, activation of the new economy, and exploration of new business models as the main line to promote the transformation of the wood industry from scale expansion to quality improvement.

Emphasis on park construction. Relying on industrial raw material forest bases and the Zhangzhou Port sea transport channel, Zhangzhou City, combined with the advantages of the G324, G355, and Xia Rong Expressway networks, replanned the wood processing industry and incorporated it into the "14th Five-Year Plan" for forestry development. The city focuses on the construction of three major forestry industrial parks in Zhangpu Zhanglong, Pinghe Xican, and Hua'an, forming a "one corridor and three zones" pattern of an industrial corridor, raw material distribution area, intelligent production area, and logistics hub area.

Emphasis on technological efficiency improvement. Zhangzhou City guided park enterprises such as Zhongfu Wood Industry and Xican Wood Industry to introduce advanced equipment such as German Dieffenbacher continuous flat-pressing production lines and HOMAG intelligent production lines to achieve intelligent and digital production throughout the entire process. Using projects such as Liansheng Pulp and Paper (Zhangzhou) integrated forest-pulp-paper, Fujian Aoxing Industry Furniture, Ecological board , and Zhangpu County Ruihuan Wood Industry plywood as a starting point, promoting the use of FSC-certified wood, implementing the ENF environmental protection new national standard, and ensuring that product environmental protection levels meet the standards of China and Europe and the United States.

Emphasis on extending and supplementing the chain. The city promotes the integrated forest-board model of Zhongfu and Xican Wood Industry, ensuring raw material supply, ensuring continuous product output, improving the ability to resist trade risks, and opening up and strengthening the integrated development chain of secondary industry, promoting primary industry, and driving tertiary industry, forming an industrial cluster covering primary wood processing, deep processing, and terminal manufacturing. Currently, the total number and total output value of wood processing enterprises above designated size in the three major parks account for 73.3% and 67.3% of the city's total, respectively.

Value Chain, Promoting Brand Empowerment

In recent years, Zhangzhou City has replanned and guided wood industry enterprises to transform from the traditional primary processing of "one specialty" to "multiple strengths," focusing on market changes and consumer needs, and promoting the transformation of products from single plywood to Decorative board , high-end furniture, smart home, and whole-house customization and other diversified products.

By the end of 2024, among the wood industry enterprises above designated size in Zhangzhou City, there were more than 80 timber processing enterprises, more than 260 engineered wood manufacturing enterprises, more than 20 wood product manufacturing enterprises, more than 10 bamboo, rattan, palm, and grass product manufacturing enterprises, more than 60 wood furniture manufacturing enterprises, and more than 90 paper and paper product manufacturing enterprises. From 2024 to 2026, there were a total of 243 leading forestry industrialization enterprises in Fujian Province, with 40 forestry enterprises in Zhangzhou, accounting for 16.5% of the province's total.

Zhangzhou City focuses on the research and development of diversified products. Combining traditional industry with intelligent manufacturing, guiding enterprises to carry out industry-university-research cooperation with research institutions such as the Chinese Academy of Forestry and the International Bamboo and Rattan Centre, and developing carbon-neutral outdoor recombined Bamboo flooring , plastic-faced wood boards, Construction formwork , and multi-layer veneer dryers and other types of products. Organizing enterprises to participate in the formulation of various international and national standards, such as the "General Technical Standard for Bamboo Home Furnishings" and the "Acceptance Standard for Custom Furniture Installation".

From "selling products" to "selling brands." Zhangzhou City helps enterprises apply for local certifications, and brands such as Zhongfu medium-density fiberboard and Guohui wood furniture have been selected as Fujian agricultural brands. At the same time, it encourages enterprises to participate in various certifications to meet the requirements for entry into domestic and international markets, forming mid-to-high-end furniture brands such as "Jinuosis," "Senhua," and "Ximengbao." Fujian Leqi Home Furnishings produces 6,000 sets of furniture annually, creating an output value of more than 60 million yuan, with products sold to Europe, Southeast Asia, and other regions.

Processing and producing home building materials

Service Chain, Unleashing Market Potential

Strengthening factor guarantee, escorting industrial development.

Zhangzhou City established the Timber Processing and Furniture Manufacturing Industry Development Promotion Association to interpret various policies to enterprises. Building bridges for bank-enterprise cooperation, expanding financing channels for enterprises, and organizing the Zhangzhou branch of Xiamen Bank to reach a strategic cooperation with the Zhangzhou Timber Processing and Furniture Manufacturing Development Promotion Association, providing a credit line of 5 billion yuan.

Doing a good job in upstream and downstream supply and demand docking. In 2024, the city held a timber processing and furniture manufacturing industry supply and demand docking event, attracting nearly 100 upstream and downstream enterprises from inside and outside the province, resulting in 8 project cooperation agreements between 16 enterprises, with an intended contract amount of 240 million yuan. Carrying out point-to-point investment promotion based on industrial characteristics, last year completed 55 forestry investment promotion projects, with a contract amount of 9.897 billion yuan.

At the same time, it jointly created a Zhangzhou furniture industry flagship store with the JD e-commerce platform, promoting the transformation of Zhangzhou's furniture industry from offline to a combination of online and offline. Actively docking with the "Belt and Road" initiative and the Regional Comprehensive Economic Partnership (RCEP) national markets, organizing cross-border trade and economic exchanges such as Zhang-Korea, Zhang-Australia, and Zhang-Philippines, and using international exhibitions and other channels to help products sell overseas. By 2023, Zhangzhou City had established trade relations with 197 countries and regions, with exports to countries participating in the "Belt and Road" initiative and other RCEP member countries increasing by 13.9% and 16.5%, respectively.

Today, the wood industry is an important part of Zhangzhou's "9+5" modernized industrial system's building materials and furniture 100 billion yuan industrial cluster, and it is also an important engine for driving local economic development. Next, Zhangzhou City will use the construction of the "three chains" to build Zhangzhou's new wood industry into a 100 billion yuan industry.

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