The European sawmilling industries regrouped within EOS could again report overall positive production and consumption figures for 2005. Softwood sawnwood production increased by 1.9%, hardwood by 3.7% compared to 2004. Especially for hardwood this is a positive development following several years of declining production rates. The Annual General Meeting of the European Organisation of the Sawmill Industry, EOS, was held in Prague on Friday 9th June 2006 and hosted by CAPLH, the Czech Association of Entrepreneurs in Forestry. The meeting was chaired by the EOS Vice-chairman René Maechler. The statistical survey from the EOS secretariat on the performance of the European sawmilling industries, presented during the General Assembly, shows that: sawn softwood production in the EOS countries in 2005 has grown by 1.9% to reach a total volume of 101.1 million m³. This record volume was reached despite drops in production in Finland, mainly due to strikes in the paper sector, in Italy and Romania. The latter was due to averse weather conditions affecting the supply of logs. Volume increases in especially Germany, Sweden, Switzerland and the Czech republic, however, could make up for these losses. Also the other EOS member countries, with the exception of Austria, reported better results in 2005. For the current year 2006 the EOS members expect a stagnating softwood production, as a growth of only 0.6% is being expected. The main cause is the anticipated 12.7% in production in Austria and more modest increases in the other countries, if compared to 2005. Total production in the EOS member countries would, however, reach close to 102 million m³. the growth in softwood consumption witnessed in 2004 could not continue throughout 2005, with a stagnation of the volume at 67.2 million m³. Reasons for this are the drops in consumption in Finland and Russia, both in the order of -11%. For Finland, 2005 is the second year of falling consumption figures. Italy has a minor decline of -0.7%. For 2006 the EOS members are more positive and expect the market to grow by about 1.5%. Growth is expected in all markets except in Austria that estimates a minor decline by 0.4%. hardwood production in the EOS countries is on the rise. In 2005, production could increase by about 3.8% to reach a volume of 8.9 million m³. Though this is still less than the record volumes of 2001, it does show a renewed trust in the material and its popularity. Especially Romania and Russia are responsible for this positive development, as production in the other main producing countries like France and Germany suffered from a decline (-10% and -3.25% respectively). For 2006, a further increase of about 2.4% is being expected. following the strong drop in consumption in 2004, the hardwood markets could recover somewhat in 2005 with a small growth of 1.8%. In some traditional strongholds, however, like France and Germany, consumption fell back rather strongly. Italy and Russia could level this out. For 2006, the EOS members expect further slight improvements, with a growth of 1.2%. The high volumes of the 1990s do seem far off still.
At present, the sawmilling industries have to cope with major price increases for its raw material, roundwood logs, as well as for energy, transport etc. This has necessitated companies to take the appropriate measures to safeguard their competitiveness and profitability. It is believed that this situation may well last for quite some time still.
An insurance solution for the sawmilling industries Together with the United Insurance Brokers, UIB, EOS has set up the company European Wood Insurance AB that, in co-operation with Lloyds underwriters, will provide a full package of insurance solutions tailored to the needs of the sawmills in Europe. Only sawmills member of one of the national EOS member organisations will be able to benefit from this solution in first instance.
Information leaflets on the new insurance solution are being prepared and will be circulated among the EOS members within short. Support to wood promotion The EOS members confirmed their support to the Roadmap 2010 process and especially to the actions within Wood in sustainable development, the process EOS runs together with the European Panel Federation EPF. Earlier this year this process organised an exhibition at the European Parliament under the title Tackle climate change: use wood. It also published a book with arguments to an increased use of wood and wood products with the same title.
For 2006, this book will be translated into other languages and a short version prepared for daily use by all actors in the sector. In co-operation with the national wood promotion bodies it is also envisaged to develop a Roadmap 2010 website and an educational tool to inform children at an early stage about real facts of wood.
EOS action plan 2006 The activities of EOS in 2006/2007 will be based on two main pillars: The normal tasks of a European organisation, dealing with the exchange of information, the elaboration of statistics and the activities within CEI-Bois. EOS also wants to position itself as the meeting point for sawmill industrialists. In this context it is envisaged to set up a consultative body of industrialists to give input into the work of the federation; Special actions, relating to the promotion of the European Wood Insurance AB and the activities in the context of the Roadmap 2010 process. As a consequence of the action plan and as a first step to strengthening their representation in Brussels, the EOS member federations agreed to a first increase of the EOS operational budget. This should be further raised over the next years to ensure that the interests of the sawmilling sector are duly covered at a European (and international) level.
The EOS Annual General Meeting 2007 will be held in Sweden, hosted by the Swedish Forest Industries Federation, Skogsindustrierna.
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