European WoodBased Panels Market Prospects UNECE Timber Committee Market Discussions 2425th Septembe

1
European Wood-Based Panels Market Prospects
UNECE Timber Committee Market Discussions
24-25th September 2002Geneva, Switzerland

• By
• Mr. Olli Koskiranta
• Vice-President, Business Development
• Finnforest Corporation

2
Contents

• European Woodworking Industry Companies
• WBP Consumption Structure in Europe
• WBP Production, Prices Consumption in Europe
• Plywood
• OSB
• Particle board
• MDF
• Market Observations in Europe vs. North America
• Future Trends
• WBP is wood-based panels Including Russia

3
European woodworking industry excluding furniture

• Production
• 60 billion EUR/year
• Workforce
• 540 000 workers
• Over 100 000 companies
• Typical SME-sector, with many sub-sectors

4
Major Wood Working Industry Companies in Europe
Finnforest - Moelven
Egger
Sonae Industria
UPM-Kymmene Wood Products
Pfleiderer
Stora Enso Timber
Swiss Krono (est.)
Kronospan (est.)
Kunz (est.)
Frati (est.)
Finsa (est.)
Nexfor
Södra
Million
AssiDomän
0
200
400
600
800
1000
1200
1400
1600
1800
Solid Wood
Panels
EWP
Building systems
Other
Source FF
5
Wood-based panels Consumption Structure in Europe
1990 - 2002
60
Other fiberboard
50
MDF
40
3
Million m
30
Particle board
20
OSB
10
Plywood
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Source FF, FAO,UNECE, WPI
6
European Plywood Production Consumption
1998-2003
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
1997
1998
1999
2000
2001
2002
2003
SW Ply Prod.
HW Ply Prod.
SW Ply Cons.
HW Ply Cons.
Sources FF, FAO,UNECE, WPI,
HW plywood includes tropical,birch and other
temperate plywood
7
Finnish Softwood Birch Plywood Price
Development 1990-2002
/m3
2001
'1-5 2002
FIN Birch Ply
FIN SW Ply
Source Finnish Customs
8
European OSB Production, Price Consumption
1998-2003
2 500
300
250
2 000
200
1 500
1000m3
EUR/m3
150
1 000
100
500
50
0
0
1998
1999
2000
2001
2002
2003
Production
Consumption
Est. Price av.
Sources FF, FAO,UNECE, WPI
9
European Particleboard Production, Price
Consumption 1998 - 2003
45 000
120
40 000
100
35 000
30 000
80
25 000
1000m3
EUR/m3
60
20 000
15 000
40
10 000
20
5 000
0
0
1998
1999
2000
2001
2002
2003
Production
Consumption
GER Price av.
Sources FF, EPF, FAO, UNECE, WBI, EUWID
10
European MDF Production, Price Consumption
1998-2003
12 000
220
215
10 000
210
205
8 000
200
195
1000m3
EUR/m3
6 000
190
185
4 000
180
175
2 000
170
0
165
1998
1999
2000
2001
2002
2003
Production
Consumption
UK Price av.
Sources FF, EPF, FAO, UNECE, WBI
11
Engineered wood products and wood-based
panelsNorth America vs. Western Europe

• North America (USCDN)
• Population 300 million1)
• GDP 12 189 Billion EUR2)
• Wood-based panels
• Plywood 16,6 Mil. m3
• OSB 19,3 Mil. m3
• Particleboard 11,1 Mil. m3
• MDF 4,4 Mil.m3
• Total 51,4 Mil. M3
• Engineered Wood Products
• LVL 1,5 Mil. m3
• Glulam 0,8 Mil. m3
• I-beams 270 Mil. linear m

• Western Europe (EU-15CHN)
• Population 390 million1)
• GDP 8 815 Billion EUR3)
• Wood-based panels
• Plywood 5 Mil. m3
• OSB 1,6 Mil. m3
• Particleboard 29 Mil. m3
• MDF 7,5 Mil. m3
• Total 43,1 Mil. M3
• Engineered Wood Products
• LVL 0,2 Mil. m3
• Glulam 1,2 Mil. m3
• I-beams 8 Mil. linear m

Sources FAO, RISI, APA, Jaakko Poyry
12
European Plywood vs. MDF and OSB Consumption
1989-2001
MDF OSB Consumption
Plywood Consumption
10
10
1,7
9
9
8
8
7
3
7
3
6
6
Million m
Million m
5
5
1,8
2,2
8,4
4
4
3
3
2
4,0
2
3,5
0,2
1
1
1,6
0
0
1989
2001
1989
2001
HW Plywood
SW Plywood
MDF
OSB
Sources FF, EPF, FAO, UNECE, WBI,
13
Plywood and OSB End Use Changes by Segments in
USA 1989 - 2001
Plywood Consumption
OSB Consumption
19.6
20
20
18.6
14.4
15
15
3
3
13,0
Million m
Million m
10
10
5.5
7.9
5
5
5,1
5,3
2.0
3,5
0
0
1989
2001
1989
2001
Industry
Renovation
Industry
Renovation
New Building
New Building
Source RISI
14
Biggest European wood-based panels producers by
capacity in 2001
MP Kaindl/Kronospan
Sonae
Egger
Swiss Krono
Plywood
Pfleiderer
Particleboard
Hornitex
MDF
Frati
Fibreboard
Finsa
Nexfor
OSB
Unilin
Spano
Schauman
Total European market 50 Mm3
Kunz
Fantoni
Wyerhaeuser
Constantia
Finnforest
0
1000
2000
3000
4000
5000
6000
Sources FF, EPF, WBI,
15
Future Trends

• The role of Russia former East-Europe as panel
  producer is increasing as is consumption in
  that area.
• Manufacturing plants are growing in size and
  simultaniously becoming multi-product
  manufacturing centers
• North American plywood will not be back to
  Europe, Asian plywood decreases its volume and
  Central - and South European plywood production
  will become niche business.
• Wood chip raw materials will increase in price
  (regionally) due to the growing popularity of
  bio-energy (subsidies).

16
Future Trends

• Price competition in bulk products
• Competition by substitutes
• Construction increasingly RR
• Demand shifts to DIY chains
• Industry, distribution customer consolidation
• Building systems Engineered Wood
• Green values recycling
• Note! Demand and supply forecasting becomes more
  and more relevant for investment and business
  Where to get reliable information and statistics?