According to statistics from the China Timber and Wood Products Distribution Association (CTWPDA) output of Wood based panels rose 5% to 315 million m3 in 2017.

Of the total, output of plywood, fibreboard and particleboard was 182 million m3, 67 million m3 and 35 million m3 respectively. Output of particleboard in 2017 surged over 30%.

However, most of wood based panel enterprises are facing huge challenges resulting from their low level technology, overcapacity, inadequate raw material supply, environmental restrictions and fierce competition not to mention rising tariff barriers.

Because of this the sector is undergoing a transformation. For example, in Zhanghzou City of Fujian province, gas is replacing coal for energy generation and around 1,000 coal fired boilers have been replaced.