On 13-16 June 2006, the European Panel Federation
(EPF) and the European Federation of the Plywood Industry (FEIC) organised their
General Assembly in Helsinki, Finland on the kind invitation of the Finnish
Forest Industries Federation. For the third time, the federations shared a joint
programme, providing the participants a unique occasion to meet all key players
in the wood-based panels industries. With nearly 200 participants for the entire
programme, this joint event proved to be a great success.
During the Open Part of the General Assembly on 15 June the EPF President, Mr
Ladislaus Döry, explained that production and consumption of particleboard grew
during 2005 and this positive trend continues this year. Within the EPF member
countries, particleboard production amounted to 35.5 million m³ last year, which
is an increase by almost 3%. Overall consumption of particleboard in Europe
topped at 32.5 million m³. Furthermore, the particleboard trade increased
sharply, especially within the European Union and the neighbouring countries.
With few new capacities coming on stream in 2006 and 2007 and the favourable
forecasts for the construction industry, the prospects for further growth in
production and demand are promising for the particleboard producers.
MDF
production was exceptionally high in 2005 climbing to 13.5 million m³, which is
an increase by 13.7% underpinned by a continuing growth in the consumption. Last
year, about 12 million m³ MDF was consumed in Europe, whereas exports to the Far
East and America continued to decrease due to the unfavourable EUR/USD exchange
rate. Production of OSB in Europe continued to grow at high pace, rounding the
cape of the 3 million m³. OSB consumption set a new record of 2.5 million m³,
underpinned by reinforced demand from in particular the resumed construction
activities.
The production costs for the European wood-based panel sector
increased sharply in 2005. The soaring oil prices had their impact on industry’s
energy, transport and resin costs. Wood prices increased sharply too in 2005.
Like for the other costs, there are important regional differences, but the
general trend is that wood costs are rising significantly throughout Europe. One
of the main reasons is that the authorities continue to promote the use of wood
as a fuel for the production of so-called “green energy”. This short-sighted
policy endangers the future of the entire wood-based industries, but in
particular our sector. Consequently, wood costs are expected be set for a long
term increase. In all, the EPF members fear that production costs will be
increasing at a pace of around 5-10% per quarter and in certain regions this
could even be an underestimation.
EPF is therefore urging the
authorities at all levels to change the focus from supporting bioenergy
production to developing actions to mobilise more wood. Furthermore, EPF is
strongly advocating the recognition of wood-based products as carbon stores. Mr
Döry was proud to report that EPF organised an exhibition entitled “Tackle
Climate Change: Use Wood” in the European Parliament in Brussels in February
2006 in close co-operation with the European Confederation of Woodworking
Industries in the framework of the CEI-Bois Roadmap 2010 project, which aims at
increasing the consumption of wood products significantly throughout Europe.
Coinciding with this exhibition, a book entitled ‘Tackle climate change: use
wood’ was presented. It provides a definitive source of reference on issues
related to wood’s role in reducing climate change. It contains a wealth of
information on Europe’s forests, how wood use helps to slow global warming, the
eco-efficient use of end-of-life wood as a bio fuel, as well as facts and
figures on the European wood industry, which turns over more than 226 billion
Euro annually in the EU-25 with some 2.9 million employees. Mr Döry also
stressed that EPF is monitoring very closely all environmental issues that could
affect the competitiveness of the European wood-based panel manufacturers. Mr
Uldis Bikis, President of FEIC and CEO of Latvijas Finieris, was pleased to
inform the audience that the European plywood producers managed to increase
their production by 3.5 % up to a new record level of 3,9 million m³ in the FEIC
member countries. during 2005, This is especially thanks to the very strong
performance by the manufacturers in Russia, Sweden and Ukraine who achieved
growth rates above 20 %. Plywood imports continue to rise and attained 3.5
million m³ in the FEIC member countries (+ 3.2%) and 6.0 million m³ in the EU-25
(+ 0.5%). The main countries of origin of extra-EU plywood imports are Brazil (1
million m³), Russia (nearly 850,000 m³), China (630,000 m³), Indonesia (370,000
m³) and Malaysia (170,000 m³). Thus, the European plywood manufacturers are
facing strong competitive pressure on their local markets. In particular Chinese
imports were soaring, registering a growth rate of more than 100%. On the other
hand, plywood exports by the FEIC member countries increased slightly by 0.4 %
to 3.2 million m³. Finland and Russia are by far the biggest exporters and most
exports were shipped to other European countries. The main extra-EU destinations
were Norway, Romania, South Korea, USA and Switzerland, but these are rather
small compared to the imported volumes.
Plywood consumption in the FEIC
member countries recorded an upswing of 4.5 % up to nearly 4.2 million m³. Mr
Bikis noted that it is encouraging to see that the plywood consumption increased
in nearly all FEIC member countries, with exceptionally strong demand in
Estonia, Ukraine, Latvia, Russia and Bulgaria in declining order of growth rates
achieved in 2005. The largest plywood consuming European countries are the
United Kingdom (1.32 million m³), Germany (865,000 m³), Italy (700,000 m³),
France (590,000 m³) and the Netherlands (440,000 m³). Broadleaved plywood is
following a strong upward path in Europe, attaining a market share of 55% of the
total production, whereas the share of tropical species is decreasing. The
blockboard production picked up after stagnating for several years, though it
remains rather small in absolute terms with 285,000 m³.
Explaining the
priorities under his Presidency, Mr Bikis announced that FEIC should strengthen
the co-operation with the national member associations in order to co-ordinate
activities aiming at expanding the markets for European plywood. After the FEIC
General Assembly, Mr Bikis informed our correspondent that the plywood
manufacturers are confronted with substantial cost increases like the other
wood-based panels producers and that there is no reason to expect that this
trend will change in the foreseeable future. Mr Bikis also reported that the
FEIC General Assembly agreed unanimously to produce only plywood of at least
“quality E1”. These qualities still emit some formaldehyde, but at a level
largely below the recommendation of the World Health Organisation (WHO). With
this decision, the European plywood industry confirms its commitment to ensuring
the quality and safety of its products and the protection of the
environment.
Both Presidents concluded by expressing their positive impression of this
third joint EPF-FEIC General Assembly. EPF and FEIC will co-organise their
Annual General Meetings in 2007 in Italy on kind invitation of their member
association Assopannelli.
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