Chairman Lu Tonghua of Treezo Group: The Story of Treezo's "Three Boards"
A 25-year long journey, a relentless march, the people of Treezo have forged ahead with unwavering dedication. In this special interview, we are honored to have Mr. Lu Tonghua, Chairman of Treezo Group, share with us his story with Treezo.
Reflecting on your 25-year entrepreneurial experience, what has been the most significant insight for you?
Running a business is primarily about making good products. Each product has its lifecycle, and old products will be replaced by new ones. Therefore, a business must continually innovate and lead industry development by aligning with market demands. Without innovation, a company lacks vitality.
Could you share the entrepreneurial story of Treezo over the past 25 years?
Let me tell you the story of Treezo’s “Three Boards.”
The First Board—Cedar Core Blockboard
When Treezo was first established, then known as Huahai Wood Industry, our factory primarily produced rotary-cut veneers. Initially, we made a profit of 2 yuan per board, but profits quickly diminished over months to just one yuan, fifty cents, and even less.
At that time, I had invested all the money I made from trading into the factory. The veneers piled up unsold in the warehouse, leading to significant financial strain. It was a tremendously painful period, and I felt like I could barely hold on.
The market necessitates change for survival, and that was our only option. Since the old products were not profitable, it was time to create new ones. Although I wasn’t exactly visionary, I had a vague sense that the era of veneers was over. After conducting market research, I immediately disposed of the old rotary-cutting equipment and invested in new presses to produce plywood and blockboards.
Initially, we used cedar, common in the south, instead of the poplar cores typically used in the north. The first cedar core blockboards we produced faced issues such as bubbling due to high moisture content when exposed to high temperatures. However, after adjusting the temperature to around 100 degrees Celsius and slowly releasing steam, the blockboards turned out beautifully. The cedar core’s natural fragrance and resistance to mold and pests made it very popular among carpenters, home decor companies, and households. Our cedar core blockboard was crucial for Huahai Wood Industry to survive and establish itself in Hangzhou.
This experience taught me that being outdated means facing setbacks. Running a business is a continuous process of innovation, and only through innovation can we lead the market and reap substantial rewards. The development of our paint-free boards further affirmed my view.
The Second Board—Eco-Friendly Unpainted Board
In 2005, I visited the United States, where I observed the entire office environment and decorative materials, organized by the Yuhang Chamber of Commerce. I noticed that all the furniture in the US used unpainted boards, which were not only eco-friendly but also lacked the smell of paint and had better flatness. At that time, domestic furniture typically involved a layer of plywood covered with a veneer and then painted.
Upon returning in 2006, I began developing unpainted boards. We were among the first in China to do so. It took us three to four months of research and development before launching the product. Soon, the entire industry joined in, and within two or three years, our eco-friendly unpainted board had replaced both the plywood and veneer across the national market.
This innovation was even more significant than our cedar core blockboards, enhancing our industry’s development and propelling our influence nationwide. From then on, we actively explored new products.
The Third Board—Bamboo Oriented Strand Board
Why bamboo? Having grown up in a rural area, I have a deep impression of bamboo. In recent years, from the central to local governments, there has been a focus on utilizing bamboo. Considering China’s abundant bamboo resources and Zhejiang’s status as a major bamboo-producing province, I thought about developing efficient bamboo material utilization technologies for board production and extending it to high-end building materials and modular construction. This would not only achieve a green, low-carbon footprint but also boost the income of bamboo farmers, aiding rural revitalization and providing a broader stage for our company's development. Innovating to address societal issues is a reflection of a company’s social value. We must engage with bamboo!
What are the challenges in working with bamboo?
One challenge is addressing the processing issues, and another is the end-use application of the products.
In terms of processing, we started by developing equipment specifically for bamboo, such as a bamboo planing machine. Bamboo, unlike wood, requires new equipment and technology for everything from harvesting to production to enhance efficiency.
In terms of end-use applications, we explored using bamboo in modular construction, such as beams, columns, and cladding panels that bear loads, as well as decorative materials like wall panels, stair treads, and flooring. Advanced processing techniques have helped us overcome the inherent flaws and variability in bamboo, making it a stronger and lighter alternative to wood and steel. The challenges also represent opportunities; bamboo utilization is a market with great potential.
How is Treezo utilizing Bamboo Oriented Strand Board to shape the future?
As mentioned, we are working on bamboo-wood structured modular construction.
Why bamboo-wood structured modular construction? Besides addressing the end-use applications of bamboo oriented strand boards, there are two other reasons.
First, President Xi Jinping stated, "Lucid waters and lush mountains are invaluable assets." In the context of the "dual carbon" goals, green building materials and low-energy consumption constructions represent a significant future trend. The growth process of wood and bamboo captures carbon, which can be sequestered in construction and further reduced through reuse, while also providing excellent insulation and reducing carbon emissions. Bamboo-wood structured modular construction is an effective way to implement the national "dual carbon" strategy.
Secondly, the country has been promoting rural revitalization and shared prosperity. I believe the future of rural areas involves long-term planning. Rural urbanization should consider the needs of the cultivation, processing, and sales business ecosystems to create a complete living and working space for future farmers, forestry managers, breeders, and their industrial workers, preventing the emergence of "hollow cities," "hollow towns," and "hollow villages."
From the perspective of agricultural, cultural, and tourism development, the future creation of such towns will certainly involve cultural and industrial elements. Bamboo-wood structured modular construction inherently possesses industrial and cultural attributes, enabling a complete business ecosystem cycle in rural areas. Moreover, integrating bamboo-wood structured construction into the creation of these towns allows us to carry forward the excellent traditions of Chinese culture using "bamboo-wood" as a medium.
Recalling the past with three superb boards, the ship sails twenty-five years, prevailing as pioneers!
Behold today's green buildings, a shared journey of prosperity, attained only by the innovators