With a total investment exceeding RMB 130 million, Luquan County in Yunnan has signed agreements for two advanced forestry processing projects.

2026-06-11 Source: Charming Luquan

Recently, the Luquan County Forestry and Grassland Bureau formally signed investment cooperation agreements with Yunnan Bohao Forestry Industry Development Co., Ltd. and Hainan Sijing Wood Industry Co., Ltd. for forestry‑related projects. With these two high‑quality forestry processing initiatives now established in the county, Luquan has achieved another significant milestone in its efforts to attract investment in the forestry and grassland sectors.

First, a wood-processing project with an annual output of 200,000 cubic meters.

Yunnan Bohao Forestry Industry Development Co., Ltd. has a total investment of RMB 120 million and is self‑financed to build two standardized wood‑chip processing facilities, complete with supporting workshops, timber storage yards, and production and environmental‑protection equipment, adopting a decentralized processing model under unified operations. Construction will commence within six months of contract signing, with completion and commissioning expected in 18 months, under a 20‑year cooperation agreement. Upon operation, the project is projected to generate annual revenues of approximately RMB 235.5 million, prioritizing local employment and ensuring tax payments are made on site.

Second, the deep-processing project for cork oak (cork)

Hainan Sijing Wood Industry is a domestic specialist in the advanced processing of cork. The project entails fixed‑asset investment of no less than RMB 10.6 million, fully financed by the company itself. It will be located at the Yuanlonghui Stone Materials plant within the Luquan County Industrial Park, utilizing an existing 8,000‑square‑meter facility. The initiative includes constructing a state‑of‑the‑art production line for the deep processing of cork oak bark, along with supporting raw‑material storage infrastructure. Construction is scheduled to commence at the end of July, with commercial production slated to begin by the end of December. The cooperation agreement has a term of 20 years. The company will conduct cork harvesting and processing in strict compliance with regulations, rigorously preventing over‑intensive or illegal harvesting, paying taxes locally in accordance with the law, and giving priority to hiring local workers.

The County Forestry and Grassland Bureau will, leveraging the county’s annual logging quota, assist enterprises in connecting with forest farmers and forestry cooperatives to ensure a stable supply of legally sourced raw materials. It will provide end-to-end support for handling administrative approval procedures, including project filing, environmental impact assessment, land use, and workplace safety. Furthermore, it will conduct routine oversight of resource utilization, environmental protection, and workplace safety, strictly upholding compliance standards for timber harvesting and wood procurement and rigorously preventing any illegal harvesting or purchasing activities.

The signing and implementation of these two projects represent a key step for Luquan in leveraging its forest‑resource advantages to transform them into industrial and economic strengths. With a combined total investment exceeding RMB 130 million, the projects focus on two distinct segments: comprehensive processing of general timber and advanced deep processing of cork from the distinctive cork oak. By addressing critical gaps in Luquan’s wood‑processing value chain and strengthening the integrated development of primary, secondary, and tertiary forestry industries, these initiatives will help unlock the county’s existing forest resources, broaden income‑generating opportunities for local forest farmers, bolster the county’s real economy, and contribute significantly to rural revitalization.

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Editor: Si Yan