191017 Europ. Market for Lightwood Products · • All importers participated in the International Lightweight Cooperation Forum ILCF (organized by ILWA, DGNED, SIPPO), one importer

Funded by Implemented by

European Market Potential for Indonesian Lightwood Products

TEI / Oct. 17th, 2019

Frank Maul, IPD Expert Markets & Sourcing


Topics

• Market Figures

• Market Requirements

• Potential for Export

• Promotion of Indonesian Lightwood Products


Market Figures


Wood Industry Turnover (without furniture) (2017, top 15 EU countries, Mio €)

0,

5.000,

10.000,

15.000,

20.000,

25.000,

30.000,

Ge

rma

ny

Ita

ly

Fra

nce UK

Sw

ed

en

Po

lan

d

Au

stri

a

CH

Fin

lan

d

Sp

ain

Tu

rke

y*

Be

lgiu

m CZ

No

rwa

y

Po

rtu

ga

l


Turnover of the wood industry in Europeby segments (2017, Mio €)

Sawmill,

planing;

7300; 29%

wood based

panel; 5190;

20%parquet;

180; 1%

building;

8510; 33%

packaging;

2570; 10%

other; 1700;

7%

Sawmill, planing

wood based panel

parquet

building

packaging

other


-60.000.000

-40.000.000

-20.000.000

-

20.000.000

40.000.000

60.000.000

80.000.000

100.000.000

Export Import Production Consumption

European wood based panel market2016, m³


-

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

MDF/HDF Particle board and OSB Plywood

Top 10 European wood based panel markets 2016, consumption in m³


European wood products consumption(2017, Mio m³)

SW

timber

Particlebo

ard

MDF/Har

dboard

HW

timberplywood OSB Gluelam CLS

2017 101 40,5 18,7 11,1 9,7 8,1 5,8 5,1

0

20

40

60

80

100

120


Furniture industry turnover(top 15 EU countries, Mio €)

0,

5.000,

10.000,

15.000,

20.000,

25.000,

Ge

rma

ny

Ita

ly

UK

Po

lan

d

Fra

nce

Sp

ain

Tu

rke

y

Ho

lla

nd

Au

stri

a

Sw

ed

en

Be

lgiu

m

Sw

itze

rla

nd

De

nm

ark

Ro

ma

nia

Cze

ch R

ep

.

Ind

on

esi

a


Production of wooden furniture per segment (Germany, Mio €)

Kitchen

furniture

Furniture

parts Bedroom

furniture

Shop

fitting/

furnitureOffice

furniture

Living

room

furniture


0

50.000

100.000

150.000

200.000

250.000

300.000

'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Building activity in Germany(residential building permits)


0

5

10

15

20

25

30

35

40

45

50

2011 2012 2013 2014 2015

Expenses for renovation and refurbishment (Germany, billion €)


81,488,8 87,6 88,6

98,3 99,1 102,2106,8 108,1 111,4 115, 118,3 121,5 124,7

16,7 17,4 15,4 15,8 16,9 17,1 16, 16,4 17,4 17,8 17,9 18,1 18,4 18,627,3 25,8

21, 22,6 24,5 24,9 25,1 25,3 26,2 26,9 27,4 28, 28,6 29,1

2007 2008 2009 2010 2011 2012 2013 2014 2015S 2016P 2017P 2018P 2019P 2020P

Turnover perspective construction, furniture and wood

industry

Germany (in billion €)

Bauindustrie Möbelindustrie Holzindustrie

Wood-related industries in comparison

Construction Furniture Wood


Main Market Requirements

• Legal requirements

• Technical requirements

• Sustainability requirements

• Typical customer-specific requirements


Legal requirements

• EUTR

• CE Mark

• REACH


EUTR - European Union Timber Regulation

• Since 2013

• To stop trade of illegally logged timber

• Tool to stop deforestation and to protect

endangered species

• excluded (till today)

• Recycling / waste

• packaging

• Printed paper

• Certain bamboo

• Certain furniture


CE Mark

• The CE Mark is a European safety standard label.

• It indicates that the manufacturer assumes responsibility and that the product complies with all relevant norms and standards.

• For products concerned (especially those dedicated to building purposes), CE Mark is the basis for the legal entry of the product in the EU.


CE Mark

• The relevant regulation for CE marking in our industry is the Construction Products Regulation 305/2011.

• The basis for the labelling of the product must be either a harmonized standard (e.g. DIN EN 13986 Wood-based Panels) or another harmonized basic document, e.g. a European technical evaluation ETA (e.g. ETA -14/0349 CLT from Stora Enso).


CE Mark: Declaration of performance

• Once the product in its application has been classified into a system of conformity, the product can be subjected to the appropriate testing and the essential properties are compiled in a declaration of performance. The declarations of performance must be made freely available to customers.


• Important for risk assessment in

EUTR

• Tool for risk minimization and

documentation

• Chain of custody guarantees validity

and legality up to the source

• Certified products are not

necessarily EUTR conform

• Certified products face rising

demand of consumers

Forest certification


Potential for Export to Europe


European wood based panelconsumption, by products [m³]

-

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

80.000.000

2013 2014 2015 2016

MDF/HDF Particle board and OSB Plywood


Comparison of weight

0

100

200

300

400

500

600

700

800

900

Chipboard P2 MDF Poplar

Plywood

Albasia

Plywood

Jabon

Plywood

Kg

/m³

Density of wood based panels


Comparison of price

0

50

100

150

200

250

300

350

400

Chipboard

P2

MDF Poplar

Plywood

Albasia

Plywood

Jabon

Plywood

%

Panel Prices

(P2 = 100 %)


Comparison of strength

0

5

10

15

20

25

30

35

Chipboard P2 MDF Poplar

Plywood

Albasia

Plywood

Jabon

Plywood

N/m

m²

Bending strength flat of different wood

based panels


Screw withdrawal

0

200

400

600

800

1000

1200

1400

Chipboard

P2

MDF Poplar

Plywood

Albasia

Plywood

Jabon

Plywood

N

Screw withdrawal flat, surface


Strength to weight ratio

15

17

19

21

23

25

27

29

31

300 400 500 600 700 800 900

Strenght to Weight Ratio

Spanplatte P2 MDF Pappelsperrholz Albizziasperrholz Jabonsperrholz

Plywood

Processed boards

Jabon plywoodAlbisia plywoodPoplar plywood


Lightwood potential

• Wooden lightweight panels and boards have a growing potential in all of the market segments such as:

• Transport (automobile, aviation, shipping industry - rolling, dunnage, packaging), furniture, construction (commercial, institutional, architectural, residential applications)

• Experts estimate a mid-term potential share of 15-20% for lightweight products


Lightweight Products and Potentials

STD WBP

85% LW PW

3%LW MDF

1%

LW PB

7%LW other

4%

LW

15%

STD WBP LW PW LW MDF LW PB LW other

15 % of 70.000.000 m³ of WBP can be lightweight => 2.100.000 m³ of plywood


KD furniture

• Increasing number of households

require more furniture

• Increasing requirement for mobility

• Trend and fashion aspects


Mobile homes and caravans

• Increasing fuel prices forcing

manufacturers of mobile homes

and caravans to reduce weight

significantly

• Legal limitations in driving licenses‘

weight allowance drive

manufacturers of mobile homes

and caravans to reduce weight

significantly


Plywood market and potentials

0

5

10

15

20

25

30

form

wo

rk

she

ath

ing

ho

ard

ing

oth

er

cra

tin

g

rolli

ng

du

nn

ag

e

oth

er

furn

itu

re

int.

ap

plic

.

oth

er

oth

er

building transport decorative other

Share of area of application of softwood plywood in

Europe [%]


Necessary developments

• Focussed customer services• Grading

• Customer surface grades

• Purpose surface grades

• Cut to size

• Surfacing

• Lightwood / Albasia grading

• CE mark


Application and user guides for Albasia

• Grades

• Sizes

• Services

• Surface treatment• Veneering

• Foiling

• painting

• Glueing

• Edges

• Technical properties


Promotion of Leightweight

Timber Products


OBJECTIVE

+Attack the important market of panels and boards in Europe, in which albasia products are not yet very known

+Promote them as an interesting alternative to plywood from other species (such as poplar) or panels from wood fibers and particles, because they have certain advantages (price, weight, characteristics such as stability)

Promotion of Indonesian Lightweight Timber Products


OBJECTIVE

+Generate income and employment from a sustainable, natural material that is grown by small-scale farmers



OBJECTIVE+ Join forces: IPD, DGNED, SIPPO, Fairventures




PRODUCT FOCUS

+plywood and blockboard from albasia, a fast-growing and lightweight timber species in Indonesia


Objective: Target the European Market for Panels&Boards from Softwood

European Wood Products - Consumption 2014, in million m³

0

10

20

30

40

50

60

Potential market = over 20 million m³ / year


Establishingthe Basis

•

Testing of panels and boards from

albasia in Germany (done by EPH

Dresden, requested and funded by IPD)

Characteristic Standard Value for Albasia

plywood

Thickness 15 mm

Bending

strength, flat,

longitudinal

EN 310 23,2 N/mm²

Bending

strength, flat

perpendicular

EN 310 27,3 N/mm²

MoE,

longitudinal

EN 310 2930 N/mm²

MoE,

perpendicular

EN 310 3690 N/mm²

Density EN 323 345 kg/m³

Screw

withdrawal

resistance,

surface

EN 320 969 N

Screw

withdrawal

resistance,

edges,

longitudinal

EN 320 816 N

Screw

withdrawal

resistance,

edges,

perpendicular

EN 320 784 N


Lightweight Timber from Indonesia - Flyer

• Short presentation

• Technical values in comparison

• Distributed at fairs and send to distributors



Creating Added-Value

•Support to ILWA in providing a system and the templates

for the CE declaration of performance


Identification of & support to exporters

Sourcing Mission to East&Central Java in September 2018Sourcing Mission to East&Central Java in September 2018

• Visit of some 15 exporters

• Preparation of the exporters

for visit of the importers

• Visit of some 15 exporters

• Preparation of the exporters

for visit of the importers


Matchmaking ActivitiesZOW (Trade Fair for Suppliers to the Furniture Industry)Germany, February 6th-8th, 2018

ZOW (Trade Fair for Suppliers to the Furniture Industry)Germany, February 6th-8th, 2018

• 2 Indonesian exporters

• on the IPD / Indonesian stand

at the 100m2 pavilion of the

German Lightweight

Construction Industry

• 2 Indonesian exporters

• on the IPD / Indonesian stand

at the 100m2 pavilion of the

German Lightweight

Construction Industry


Matchmaking ActivitiesBUYING MISSION Central&East Java, October 15th-19th, 2018

BUYING MISSION Central&East Java, October 15th-19th, 2018

• 4 European importers visited 11

Indonesian exporters

• 4 European importers visited 11



Matchmaking ActivitiesBUYING MISSION Central&East Java, October 15th-19th, 2018

BUYING MISSION Central&East Java, October 15th-19th, 2018

• All importers participated in the International Lightweight Cooperation Forum ILCF

(organized by ILWA, DGNED, SIPPO), one importer presented the market opportunities

• At ILCF, b2b meetings between the 4 importers and the 11 Indonesian exporters plus 4

additional exporters that participated in ILCF

• All importers participated in the International Lightweight Cooperation Forum ILCF

(organized by ILWA, DGNED, SIPPO), one importer presented the market opportunities

• At ILCF, b2b meetings between the 4 importers and the 11 Indonesian exporters plus 4

additional exporters that participated in ILCF


Matchmaking Activities

3rd Indonesian Lightweight Timber Pavilion at interzum, the international fair for

the furniture and interior construction industries' supplying sections

May 21st-24th, 2019 – Cologne, Germany

• Main organizer: ITPC

(Indonesian Trade

Promotion Center) in

Hamburg

• 50m2 pavilion / 3 exhibiting


• Pavilion partly made from

albasia products

• Main organizer: ITPC

(Indonesian Trade

Promotion Center) in

Hamburg

• 50m2 pavilion / 3 exhibiting


• Pavilion partly made from

albasia products


IPD – Import Promotion Desk

Project Office Bonn

c/o sequa gGmbH

Alexanderstraße 10

53111 Bonn

Fon: +49 (0) 228 965 05 890

Fax: +49 (0) 228 926 37 989

[email protected]

www.importpromotiondesk.com

Thank you!

Frank Maul

[email protected]

Questions?

Documents

191017 Europ. Market for Lightwood Products · • All importers participated in the International Lightweight Cooperation Forum ILCF (organized by ILWA, DGNED, SIPPO), one importer