Valueadded Forest Products

1
Value-added Forest Products

• Introduction by
• Ed Pepke
• Forest Products Marketing Specialist
• UNECE FAO Timber Branch

2
Value-added forest products

• Introduction by Ed Pepke, Forest Products
  Marketing Specialist, UNECE FAO Timber Branch
• Mr. Jukka Tissari, Market Development Officer,
  International Trade Center, Geneva (co-author of
  chapter in Forest Products Annual Market Review,
  2001-2002

3
Sources of information

• Forest Products Annual Market Review
• APAthe Engineered Wood Product Assn.
• USDA Forest Service, Princeton Forestry Sciences
  Lab, West Virginia
• Innovative Uses of Wood, presentation by
• Dr. Al Schuler for Thursdays 60th Session
  seminar in Neuchâtel

4
Findings from Forest Products Annual Market Review

• Multiple benefits from value-added processing
  attract policy makers
• International trade barriers liberalized
• International trade reached 33.7 billion in
  2000, up by 27
• Furniture imports from developing countries
  fastest growth
• Latin American profiled wood dominates USA

5
Findings from Forest Products Annual Market Review

• Asian suppliers gaining in Japan and Germany
• Central and eastern European suppliers gaining
  market in Germany
• Industrialized countries shifting manufacturing
  to cost-competitive countries
• Tropical production and exports growing rapidly
• Engineered wood products at record levels in
  North America

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Engineered Wood Products

• Glulam (glued, laminated beams)
• Wooden I-beams
• Laminated veneer lumber (LVL)
• Others
• OSB
• Oriented strand lumber

7
LVL
Oriented Strand Lumber
LVL
OSB
Wood I- Joist
8
Advantages of EWPs

• Efficient use of wood in manufacturing
• Reduced on-site construction time
• Reduced construction waste
• Predictable performance
• Technology meeting market needs

9
Outlook for EWPs in North America

• Glulam 7 growth in 2003 (from 2001)
• I-beams 14 growth
• LVL 19 growth
• EWP plants doubled over last decade
• Equivalent to 5 of sawnwood supply

10
Findings from Country Market Statements

• Czech Republic Exports and prices rising.
• Germany Downturn in VAFP production in 2001 by
  4. 5 drop in profit and employment. Decline
  expected in 2002.
• Hungary VAFPs represent 45 of trade.

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Findings from Country Market Statements

• Latvia Furniture exports grew 38 and builders
  joinery grew 7 fold in last 5 years.
• Lithuania VAFPs exports up 25 in 2001, up 20
  more in 2002. Account for 60 of export value in
  2002.
• Romania Furniture 46 of export value.
• Spain Extensive social fabric of 236,000
  workers, over half in furniture. Exports slowed
  in 2002.

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Findings from Country Market Statements

• Turkey First time net exporter of VAFPs in 2001,
  expected to continue in 2002 (source FPAMR,
  2002).
• United Kingdom Timber frame manufacturers moving
  to prefabrication with EWPs, partly due to lack
  of skilled construction labour.
• Yugoslavia Of 50 million furniture produced,
  60 exported in 2001.

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Next speaker

• Mr. Jukka Tissari
• Market Development OfficerWood Products
• International Trade Center
• Geneva