Close to 3.000 Panel Mills Cease Operation in China

Aug 7, 2017 | Markets | 0 comments

CHINA – According to ITTO (International Tropical Timber Organization) reports, nearly 3.000 wood-based panel mills in Wen’an County, Langfang City, Hebei province in China have been told to cease production. 

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This will have an immediate impact on the domestic panel market and jobs as approximatedly 10,000 workers are employeed by the affected panel mills.

Some companies have been required to re-tool to meet environmental requirements and some have been encouraged to relocate to their original home provinces, such as to Shandong Linqing, Liaoning Benxi, Xinjiang Yanqi and Hebei Xunxi. A series of workshops on ‘Returning to Hometown to Invest’ have been held to encourage wood-based panel enterprises to return to their hometown and invest there.

The affected panel mills were found to be generating and emitting pollutants which had contaminated surrounding farmland. It has been estimated that when these enterprises stop production or relocate it will be possible to rehabilitate around 2700 hectares of farmland. 

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