An aerial view of the extensive pencil industry works located in Zhukou town in Qingyuan county. [Photo/WeChat account: lsnews]

The pencil industry in Qingyuan county – administered by Lishui city in East China's Zhejiang province – was born at the start of China's reform and opening-up in the late 1970s and it's a success story that continues to write new chapters for itself.

The local sector developed rapidly, especially during the 12th Five-Year Plan (2011-15) and the 13th Five-Year Plan (2016-20) periods.

The latest statistics showed that in 2020 there were 47 pencil companies and they produced more than 7 billion pencils, achieving a total output value of 2 billion yuan ($307.75 million).

Founded in 2000, Zhejiang Hongxing Stationery Co Ltd is engaged in the design, research, manufacturing and sales of pencils and stationery. Currently, its products are being exported to more than 30 countries and regions in the world. Its annual output of pencils is more than 1.8 billion and annual sales have reached 420 million yuan.

Although foreign trade orders declined during the COVID-19 pandemic, each employee still achieved an output value of more than 600,000 yuan last year, according to Ye Mingshang, the chairman of the company.

The continued development of Hongxing has also been a boon for local employment. At present, the company has more than 800 employees, including over 400 from Zhukou town, where the company is based.

Chasing green development, Qingyuan's pencil companies have been actively been searching for new sources of raw materials since 2000.

In 2010, Qingyuan was conferred the title "Pencil Production Base in China", while Zhukou town – where the pencil enterprises are relatively concentrated – was named the "First Pencil Town in China" in 2014. In 2017, China's only national export pencil quality and safety demonstration zone was established in Qingyuan.