China's wood processing hub of Linyi is on track to report robust annual growth, with the output value of its major enterprises in the high-end panel and green smart home furnishing supply chain expected to reach 145 billion yuan (approximately US$20.4 billion) in 2025, according to local reports.
Strong Annual Performance and Industry Position
From January to November 2025, the industrial chain added 52 new large-scale enterprises, bringing the total to 1,591-the highest among all key local industrial chains. The sector's cumulative tax contribution reached 24.74 billion yuan, accounting for one-seventh of the city's total industrial tax revenue. The output value for the first 11 months stood at 1.3149 trillion yuan, firmly supporting the full-year forecast.
Strategic Goals for 2026: "Three Benchmarks" and "Four Directions"
Local industry authorities have outlined an ambitious roadmap for 2026, framed by the "Three Benchmarks" strategy: aligning panel standards with Huzhou, home furnishing with Guangzhou, and industrial policies with Guigang. The development will focus on four key directions: high-end, intelligent, green, and clustered production.
To achieve these goals, the city plans to implement five major initiatives: strengthening the industrial supply chain, cultivating enterprises at different development stages, leading with technological innovation, enhancing brand development, and fostering a supportive industrial ecosystem.
Focus on Technology and Upgrading
A core part of the strategy involves technological advancement across the supply chain. Efforts will concentrate on developing green, formaldehyde-free adhesives to improve the core quality ("inner layer") of high-end panels and on adopting high-performance surface materials like quality solid wood to enhance the aesthetic and functional "face" of products.
The city also plans to expand its industrial research institutes, leverage artificial intelligence (AI) to drive transformation, scout for potential AI projects in the Yangtze River Delta and Pearl River Delta regions, and upgrade the entire chain's capabilities. Supporting local advantageous industries is a stated priority.
Expansion Through Project Development
The growth plan is backed by concrete project pipelines. Authorities aim to accelerate construction on 78 ongoing projects and facilitate the launch of 53 planned new projects. The goal for 2026 is to increase the number of statistical-reporting enterprises to 1,600 and push the output value of large-scale enterprises in this industrial chain beyond the 150 billion yuan mark, contributing to the city's broader target of achieving a total industrial output value of over 10 trillion yuan.
