Dongguan furniture, which accounts for at least 30% of the US market, has ushered in unbearable pressure. Since the 1st of this month, the United States has begun to implement the "Standards of Compound Wood Products Formaldehyde Act" (hereinafter referred to as the "Formaldehyde Act"), and the formaldehyde limit standard will be greatly improved. The standard has been increased by 3 times compared with the previous one, and it is 1000 times higher than the standard of domestic sales. This means that the Dongguan furniture industry will face an insurmountable threshold - a new standard of furniture.

Professionals in the furniture industry are worried that the new standards will seriously undermine the competitiveness of many enterprises in Dongguan exporting to the US furniture market. Smaller furniture companies will face the choice of life and death, and internal integration is inevitable.

Corporate voice: "Environmental protection costs increase by more than 100%"

The reporter learned that the new "formaldehyde standard" in the United States mainly caused a wide-ranging impact on composite synthetic wood products. For solid wood furniture, there was no obvious impact. However, a furniture manufacturer told reporters that today's furniture, such as wardrobes, beds, computer desks, etc., cannot completely use solid wood. Because the cost of solid wood is too high, except for the key components, the rest are generally made of synthetic wood. This is the soft underbelly that bears the standard of formaldehyde.

Technically speaking, synthetic wood boards actually use thin chemicals such as adhesives to bond together various thin wood boards to form a relatively strong artificial wood board. This synthetic wood board is widely used in medium and high-end furniture products.

The latest implementation of the "Standards of Composite Wood Products Formaldehyde" by the US government stipulates that the release of formaldehyde from hardwood plywood shall not exceed 0.05 parts per million, the medium density fiberboard shall not exceed 0.11 parts per million, and the thin medium density fiberboard shall not exceed one million parts. 0.13, the particle board should not exceed 0.09 parts per million.

Enterprise: Competition can only adapt first

The new standard is too big for companies that are accustomed to low standards of domestic furniture formaldehyde content. "Now the national standard is formulated with reference to EU standards. The formaldehyde emission should not exceed 90mg/kg, and the formaldehyde emission of the particleboard specified in the "Formaldehyde Act" should not exceed 0.09mg/kg, which is 1000 times higher than the Chinese standard." Zhang Wenquan, an export trade, said with a smile, this time, the cost of environmental protection for production companies has increased by more than 100%.

Mr. Wang, the deputy general manager of a furniture company in Dongguan, told reporters that, in fact, as early as the end of June, American merchants began to require them to produce according to the new standards when placing orders, and customers were forced to do so. However, Mr. Wang also revealed that the standard has been raised, but the price cannot be mentioned. Because of the great competitiveness, he will not do it himself, others will do it, and only adapt to it. “The weight of Dongguan furniture exports to the United States is quite large, accounting for about 30% of the national market.”

Many furniture manufacturers and traders interviewed agreed that the United States is a key market for furniture exports. The trade volume of furniture exported to the US last year was about 500 million US dollars. At present, many people are facing high production costs, appreciation of the RMB exchange rate, rising raw materials, etc. Happening. The introduction of the "Formaldehyde Act" has increased the operating costs to a considerable extent, and also increased the risk of being punished by customers, which is not a good thing for enterprises.

Inspection and quarantine department: large furniture companies are mostly prepared

The reporter learned from the relevant staff of the inspection and quarantine department in Dongguan that, in fact, for those large-scale furniture industries, it is expected that the United States will have this new standard.

On January 1, 2009, California was the first to significantly increase the limit requirements for formaldehyde in hardwood plywood, particleboard, medium density fiberboard, and finished products using these materials. Because according to past experience, a state in the United States will implement the new standard first, and then it will be pushed to the whole country. Therefore, the Guangdong Inspection and Quarantine Bureau trains the province's export furniture enterprises through various channels, and informs the enterprises as soon as possible of the latest foreign laws and regulations, including the new regulations of California, and guides them how to achieve the standards.

Therefore, the implementation of this new standard has already prepared for the large-scale import and export furniture industry.

Industry associations: new standards promote the reshuffle of the furniture industry

“The US “Formaldehyde Act” that has just been implemented is very demanding on the formaldehyde limit standard. The formaldehyde content standard has been increased by three times. This new regulation has brought the export market of the furniture industry to a great extent. The change." Yesterday afternoon, Miss Wu of Dongguan Furniture Industry Association staff said. In order to cope with this market change, many companies are trying to change their living conditions and try to avoid a devastating blow.

“Because of rising costs, small businesses have little profit, which makes them difficult to adapt. In my opinion, a large enterprise merges with small enterprises, or small enterprises can't stand the pressure of high cost and high technical standards. The situation will appear," said a council member of the Dongguan Furniture Industry Association.

A furniture manufacturer said that the new standards have prompted companies to re-purchase their procurement plans. The raw material suppliers that comply with the new regulations are currently not many in China, which will inevitably lead to high-quality raw materials. The price of Luoyang is so expensive and the price soars. This is difficult for small businesses. Take up the cost.

"At present, there are only two or three plate companies that can provide new composite standards in Guangdong. This kind of market makes the enterprises with weak strength have no way out." Liu Wenhui, general manager of Dongguan Mingliu Furniture, said that the shortage of raw materials will definitely lead to price increases. And those companies that have signed an order either terminate the contract or work at a loss, which is not a bad thing anyway.

Mr. Zhang, who is engaged in procurement work in a furniture company, said that since last month, he has been keeping an eye on whether the price, quantity and quality of raw materials supplied by suppliers are stable. On the other hand, he has to discuss with customers the price increase after the implementation of the new standards. The problem, in fact, the price increase is a very sensitive issue. If you fail, the customer will turn to other peers.

The way to deal with: scientific management of innovative processes

The furniture companies interviewed agreed that the new standard will at least increase the cost of producers by 20%. Such pressure will make those OEMs or small-scale enterprises unbearable, and a new round of integration is difficult to avoid.

Some market participants also have a positive view. "To solve the problem of formaldehyde, we must comprehensively consider all aspects of factors." A manufacturer said that in cooperation with overseas customers, in addition to the requirements for product quality, the company's product line and society Responsibility status, legality of raw materials, sustainability, and accuracy of delivery expectations are all factors considered by the other party. Therefore, only when these comprehensive strengths are improved, the negotiation bargaining power of enterprises can be guaranteed.

Liu Wenhui believes that the current export market has not fully recovered, and the continuous improvement of the environmental protection threshold will further increase the survival pressure of furniture companies.

Liu Wenhui said that in the process of dealing with environmental protection issues, furniture companies need to face positively. The international market is paying more and more attention to environmental protection issues. Domestic enterprises should be prepared for a long time. In business management, they should consciously turn to process innovation and cost control. , management innovation, financing and expansion of production and other efforts. When a company has a scientific management status, some market changes will not bring devastating blows.

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