Production In 2005, the production of wood floors in China reached 312 million square meters, 18% increase from last year, with the market value at 4.375 billion US dollars. In the next 5 years, the production and sales of wood flooring products are expected to grow at average rate of 15-25% annually.

Export
Exports of wood floors from China are on an upswing. It is estimated that in 2010, foreign sales will cover 40% of the total production in China given a favorable international market condition. In the past few years, Chinese manufacturers of wood floorings, including hard wood floor, parquet wood floor, laminate floor and bamboo floor, have improved greatly on quality and shipments, and thus enjoyed a fast growth of foreign sales. Laminate flooring products led both in terms of value and volume, bamboo floors increase fast while the percentage of solid wood floors will decrease due to many reasons such as limited raw materials and government policies.
On the other hand, some unfavorable issues influenced greatly on international sales of Chinese wood flooring products, including anti-dumping clauses from Canada and Turkey and Investigation No.337 and 332 with USA.

Price
Chinese flooring companies are trying to improve quality while keeping prices at affordable levels. However, suppliers, especially wood floor suppliers, face price pressures from raw materials. Chinese government has imposed policies that limit logging in China. As a result, manufacturers will have to deal with shortage of domestic materials. Meanwhile, Government imposes 5% consumption tax on wood floorings effective from April 1st 2006 and the customs drawback rate decreased from 13% to 11% in 2006. International organizations have been lobbying every governmental body on reservation of forests. All of these have become obstacles that may slow down wood floor sales and productions.

Competition and Supply Concentration
It is estimated that 70% of the wood floor manufacturers will close down in the next 3 years in China and the market concentration rate will increase greatly. Rising operational and production costs require larger business scale and higher efficiency. Besides price, competition on quality guarantee and after-sales services becomes keener. Big suppliers begin to put eggs in more than one basket. Traditional players of solid wood floors set up production lines of laminate and parquet floors while new products like bamboo parquets are drawing more attentions from industry players.

The company has 2 manufacturing lines, from drying and milling till to the U. V. finishing. The rolling lacquering machines were imported from Germany. The glue and U. V. lacquer were imported from Norway and Germany.