Industry Analysis & Industry Trends
China's urbanization rate increased from 45.7% in 2008 to 53.7% in 2013. The resulting fast development of the real estate market created huge demand for construction wood, wood for decoration, and wood furniture. The rapid development of transportation infrastructure also raised demand for special timbers and sleepers. These factors have benefited the Sawmill industry, which has been performing strongly. Industry revenue is set to reach $11.6 billion in 2014, reflecting 12.4% annualized growth over the past five years.
Due to inadequate supply, low quality, and the uneven distribution of Chinese forest resources, demand for industry products surpasses supply. Therefore, China imports sawn timbers and sleepers to satisfy market demand.... purchase to read more
Industry Report - Starting a New Business Chapter
About 96.5% of sawmills in China are small-sized enterprises, which do not required much fixed investment for production. Larger sawmills that employ economies of scale have an advantage as their production costs are lower. Those scale enterprises adopt advanced equipment to improve conversion rates of logs and reutilize residues to produce other products.
Authorization from the State Forestry Administration is essential for new firms to enter this industry. To obtain Timber Trade and Production licenses, sawmills must comply with requirements for sawing locations, machines, and raw materials, and fixed assets. Sawmills that import logs and export finished products must also obtain licenses from the relevant organizations... purchase to read more