One-stop shop furniture park

Intended to be a one-stop shop for buyers of finished furniture and furniture components, the park is expected to be completed in three to five years.

The FSTIP is managed by the Shenzhen Furniture Trade Association. Spanning 1.8-million square meters, it will house large-scale finished furniture manufacturers, furniture component manufacturers, logistics, packaging, training, financing, marketing and other service firms. Makers of finished furniture will occupy almost half of the industrial park.

About 30 factories for office furniture, home furniture, children's furniture, components and parts have already registered to set up in the park. Some 50 "core" companies are expected to set up in the park. By its completion, the FSTIP is expected to generate an annual output worth $1.22 billion, of which $300 million are for exports. Estimated annual revenue is $7 million.

The furniture industry is one of Shenzhen's fast developing industries. It supplies a quarter of mainland China's total furniture exports. In 2002, production reached $1.82 billion, of which 70 per cent ($1.28 billion) was exported. The exports reflected an increase of 14 per cent from the year before.

Shenzhen exports its furniture to 68 countries and regions, including the United States (48 per cent), Hong Kong (13.7 percent), the European Union (12.1 percent), and Japan (10.8 percent).

But the industry lately has been faced with problems that limit its development, such as declining demand and weak R&D capability. The FSTIP is designed to address these concerns. It will provide manufacturers R&D and design training, assistance in securing international approvals, and management consultancy.

At the same time, companies will be given exposure in international trade shows and exhibitions. "All these measures can help furniture manufacturers to catch up with the latest trends in the world market," said Peng Hong, manager of the FSTIP development department.

The project is being constructed by the government of Kengzi Town and is designed by the Shenzhen Economy & Trade Bureau.