The company EUROPEAN CHINA INTERNATIONAL GROUP SIA is a Latvian venture with local capital that is managing constantly growing supply chain of sawn dimensional timber products from countries located in Northern European region to China. The company is exporting ready-made containerized cargo through the ports of Riga (Latvia), St. Petersburg (Russia), and Klaipeda (Lithuania), which allows it to optimize the cost of purchasing raw products as well as logistics expenses. Sourcing region includes EEC and Western part of Russia and it is known as one of the richest regions in Europe in terms of forest.
Reliability is one of the key assets of EUROPEAN CHINA INTERNATIONAL GROUP SIA. Company cooperates with the biggest and well-known raw wood producers in the region. By combining it with wide logistics network the company became capable of building the most feasible and reliable supply chain for its clients in China.
Depending on specification of cargos and geographical location of the Customer, the company offers to its clientele highly customized supply and delivery solutions. Company trades both standard and on demand specifications and grades. The range of materials is 90% coniferous timber and the remaining 10% is birch, oak etc. Examples of company’s produce can be seen in the pictures below. Main area of use is construction and furniture production.
EUROPEAN CHINA INTERNATIONAL GROUP SIA is looking to attract factoring-type financing enabling it to support additional purchases of timber and secure volumes of export sales. Export contracts are 100% covered by opened irrevocable LCs that makes debt really secured. Clients of the company are mainly huge importers with verified history and signed long term cooperation agreements.
NEWS PROVIDED BY Research and Markets
China is the second largest timber consumer in the world. With the development of China's economy, there is a growing demand for timber from industries of construction, papermaking and furniture manufacturing. However, the timber production grows slowly in China as restricted by timber resources and the rising costs of logging. On January 1, 2017, the Chinese government announced the prohibition on the commercial cutting of natural forests. It is estimated that the timber production in China will shrink in the next few years.
From 2013 to 2017, the apparent consumption of timber in China increased by nearly 18% to 192.5 million cubic meters. However, the decrease in the production volume pushed up the import volume. As a result, China's reliance on timber imports rose from 48.4% in 2013 to 56.4% in 2017, and is expected to keep growing in the next few years.
In 2017, the import volume of timber in China reached about 108.5 million cubic meters, registering a YOY growth of 16.1%. Softwoods and hardwoods account for about 68% and 32% respectively of China's timber imports. And as labour costs in China are rising, sawn timber is taking up a larger proportion of China's timber imports. The ratio of sawn timber imports to log imports increased from 1:4 in 2007 to 2:3 in 2017.
According to the researcher, in 2017, Russia, the U.S., New Zealand and Canada, the four largest sources of China's timber imports, provided 64% of the total import volume of timber in China. In particular, Russia and the U.S. provided about 31% and nearly 10% respectively of the total timber imports. On August 3, 2018, China's Ministry of Commerce announced a 5% to 25% tariff increase on U.S. exports worth USD 60 billion, including a 25% tariff increase on U.S. timber. Evidently, the Sino-U.S. trade war will have a certain impact on China's timber import.
The domestic supply of merchantable timber has been contracting, and China's reliance on timber imports has exceeded 50% since the Chinese government announced the prohibition on the commercial cutting of natural forests in 2017. It is expected that the international timber prices will show an upward trend in the next few years as the import volume of timber keeps rising in China.
Some Chinese enterprises have begun to invest in the forestry industry in other countries, mainly Russia, to ensure a stable and adequate supply of timber. By the end of 2018, more than 100 Chinese enterprises had invested in Russia's forestry industry with a total of over USD 2 billion. And the figures are expected to grow further. The Chinese government has few restrictions on timber import. Therefore, the Chinese market will provide global forestry enterprises with numerous opportunities in the next few years.
Envestio participant’s investment - EUR 1 000.00
Total expected return: EUR 1 100.08Investieren Sie in dieses Projekt
|Kreditnehmer||“European China International Group” SIA, Reg. Nr. 40203094265, Latvia|
|Finanzierungsziel||€ 200 000|
|Zweck des Darlehens||Trade financing/factoring for the purchase of timber for cover opened LC|
|Rückzahlung des Darlehens||Im vollen Umfang am Ende der Darlehenslaufzeit|
|Kapitalrückkauf möglich||Ja, mit einer Strafzins von 5%|
|Zahlung von Zinszahlungen||Monatlich, an einem bestimmten Tag|
|Typ der Finanzierung||Gesichertes Darlehn|
|Garantie vom Eigentümer des Projekts||Wirtschaftliche Garantie zu Gunsten von Envestio Pfandhaltern, persönliche Garantie|
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