Zhongshan sets up timber market
The Zhongshan government plans to boost its tax revenue from the timber industry by setting up a logistics centre with Hong Kong-listed Sustainable Forest Holdings, which will supply wood to businesses in the Guangdong region.
The logistics centre, named the Susfor-Oasis International Timber Trading Market, is located in the 3.5 hectare New Oasis Industry Zone in Zhongshan, in southern Guangdong.
Sustainable Forest will be the sole operator and supplier for timber to local manufacturers and wholesalers, according to its chief financial officer Sandy Fletcher.
Xie Zhongfan, vice-mayor of Zhongshan, said yesterday the new industrial zone was not just another property project.
'We want to tell everyone that this is not a real estate development,' Xie said. 'We are not planning to have lots of shops there and receive rental payment from the tenants. This is not our goal.'
Xie likened the logistics centre to a one-stop timber trading platform for wood users, and having all of them operating in the industrial zone would help boost tax revenue.
Zhongshan has more than 1,000 wooden furniture makers, according to local government statistics, which show that Zhongshan and nearby Shunde are the largest wooden floor furniture production areas in China.
The industrial zone will provide tax incentives such as a duty free-zone for exporters.
Sustainable Forest last month bought Zhongshan-based Originate Tech Global Investments, which makes wooden floors, for HK$380 million. Fletcher said the logistics centre would help cut out trading companies in the middle, improving profit margins.