Linyi city of China is known the world biggest hub for plywood manufacturing, having more than 4000 plywood and panel producing establishments. But the recent China Government strict major to control pollution, there are more than 40 % units are compelled to stop production resulting the steep drop in plywood and panel production in the city.
It has been reported that most wood-based panel enterprises in Linyi City, Shandong Province have been told to cease operation as they do not meet environmental protection and safety regulations. The authorities will stop water and power supplies to the mills and for those mills that cannot upgrade to meet the new standards the machinery in the factories will be removed.
Teams from the Environmental Protection Bureau conducted surveys in Linyi City for one month to identify non-compliant factories. The impact on plywood prices in the local market was immediate.
All wood-based panel markets in China have been affected by investigations conducted by the Environmental Protection Bureau and there has been a steep decline in panel output from mills in Hebei and Shandong Provinces.
However, Guangdong wood-based panel manufacturing enterprises have not been affected because they have a strong awareness of environmental issues and have been able to satisfy the new requirements. In the first half of 2017, the volume of laminate decoration panel of one company rose more than 40% from the same period of last year.