Gangnan District Strikes Deal To Drive Wood Industry Growth

KUALA LUMPUR, Oct 30 (Bernama) -- The Government of Gangnan District in Guigang City, Guangxi, has signed a cooperation agreement with Shandong Jinyuan Wood Industry Co Ltd during the 22nd China-ASEAN Expo to advance the district’s wood industry cluster.

Under the agreement, Shandong Jinyuan will establish a production line and related facilities with an annual output of 40 million impregnated papers and 12 million decorative panels. The project will also introduce advanced production and testing equipment.

According to the Gangnan District Government in a statement, once operational, the facility is expected to generate annual revenue of about 680 million Chinese yuan. (100 Chinese yuan = RM59.13)

bootstrap slideshow

The collaboration marks a significant step towards high-end industrial development and highlights the district’s role as a strategic gateway to the ASEAN market.

Benefitting from its proximity to the ASEAN economic circle and rich forest resources, the district has leveraged major infrastructure projects such as the Western Land-Sea Corridor and the Pinglu Canal to enhance logistics efficiency and reduce overall costs.

Gangnan has successfully expanded into the ASEAN market and transformed its wood industry from conventional panel manufacturing to high-end customised home furnishings. The district now boasts a complete industrial chain, from veneer production to whole-house customisation.

bootstrap slideshow

In 2024, Gangnan’s output of man-made wood panels exceeded 15 million cubic metres, representing about one-fourth of Guangxi’s total production. Since 2006, the number of wood industry enterprises in the district has grown from over 30 to more than 1,400, including more than 300 large-scale enterprises.

Gangnan Wood Industry Industrial Park has become one of China’s major production bases for leading wood panel brands, with an annual output exceeding 10 million cubic metres of high-quality panels used in furniture and home furnishings.

The district is also promoting intelligent manufacturing by integrating artificial intelligence (AI) into key production processes such as quality inspection and processing. Companies like Boyite Smart Home have adopted AI-powered quality inspection and trading platforms to enhance operational efficiency.

From January to August this year, enterprises above the designated size in Gangnan’s wood industry achieved a total output value of 13.52 billion Chinese yuan, up 8.8 per cent year-on-year, while cumulative sales reached 10.9 billion Chinese yuan, an increase of 7.3 per cent.

-- BERNAMA