GLOBAL INDUSTRY REVIEW - Fiberboard Industry · ARAUCO North America IKEA Uniboard FBP Fibre Based Panels is published by Data Transcripts Ltd., in conjunction with the MDF YEARBOOK

2014 ® 2015

GLOBAL INDUSTRY REVIEW

Medium Density Fibreboard ® Fibreboard ® Particleboard

ISSN 1361-777X

Published by Data Transcripts Ltd.

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MDF INDUSTRY YEARBOOK 2014/15

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EDITORIAL FOCUSTowards a Two-Tier Business Platform 7

BUSINESSBusiness Sustainability in a Diverging World 8

Company Mergers & Acquisitions 10

Fibreboard Producer Company Business Comparisons 12

Industry Data Viewed in a Different Way 15

ANALYTICSGlobal & Sub-Regional FB/PB Capacity Analytics 16

Lead Nation’s FB/PB Capacity Analytics 18

China’s FB/PB Sector Capacity Overview 22

China: MDF Machinery Market Demand Slows as Exports Rise 24

COMPANY CAPACITY LISTINGS 2014-2015 Global MDF Listing 28

Global PB Listing 38

China MDF Listing 52

China PB Listing 64

FEATURE ARTICLECountry Profile: Turkey 68

TECHNOLOGY & PRODUCT DEVELOPMENTMaterials & Products: Recyclable MDF 72

Resination Systems 73

Panel Products Terminology 74

Sandvik Builds to Meet Future Demand 75

MARKETS China’s Move to Consumer-led Economy Raises Questions 76

Macroeconomic & Regional Economies’ Profiles 78

Price Trend: Long Term Regional Export & Domestic 79

Construction Growth Change vs MDF/PB Capacity in North America & Europe? 80

India Panel Industry at a Crucial Stage 83

In the Current Issue:

SINO-FOREST LAW SUIT APPROACHES CLOSURE BUSINESS: Business Sustainability AEG MDF Wood Chip Supplies MDF YEARBOOK 2014-2015 Unmanned Helicopter to Fight Forest Fires

PRICES: Rising Panel Prices Favour Alternative

ECONOMY & MARKETS UPDATE: Indian Raw Material for Wood-based Industry China 2014 Growth at 24-year Low

TECHNOLOGY: MDF Patent ‘Pop-Up’ Temporary Housing

PRODUCTS & MATERIALS: Bamboo Fibre Composites Impulse Drying Behind Fibre-Based Bottle Higher Processing Throughout

COMPANY NEWS: Dieffenbacher Sveza Group Masisa Homann Holzwerkstoffe ANDRITZ Norbord Inc. Mohawk Industries Proteak Uno Egger Group ARAUCO North America IKEA Uniboard FBP Fibre Based Panels is published by Data Transcripts Ltd., in conjunction with the MDF YEARBOOK. For subscription and advertising details contact: DTL, 2 Rothes Road, Dorking, Surrey, RH4 1JN, UK. Tel: +44 (0)1306 876709 Email: [email protected]

SINO-FOREST LAW SUIT APPROACHES CLOSURESino-Forest, a Chinese business created by two men in 1994 was worth more than US$6-bn at its peak, before it was accused of a massive fraud in Canada in 2011. The business was mainly related to the ownership of forest land and embraced some 200 firms trading under different names and, most of which were later found to be non-existent.

Ernst & Young (E&Y) as Sino Forest’s auditors during 2007, 2008, 2009 and 2010, were challenged by the Ontario Se-curities Commission for not having obtained enough evi-dence that Sino-Forest actually owned all the timber assets that it claimed. Sino-Forest and several former executives were also accused of lying and attempting to mislead inves-tigators, when the company raised some $3bn in debt and equity offerings between February 2003 and October 2010.

After various legal delays, the insolvent Sino-Forest filed for bankruptcy in 2012 according to the OSC. Sino-Forest busi-ness was at the same time renamed Emerald Plantation Holdings and was capitalised with a promissory note to bond holders.

Meanwhile, the U.S. Securities and Exchange Commission launched proceedings against the China affiliates of several of the large accounting firms for refusing to produce audit work papers and other documents related to China-based companies under investigation. The SEC charged: BDO China Dahua Co. Ltd., Deloitte Touche Tohmatsu Certified Public Accountants Ltd., Ernst & Young Hua Ming LLP, KPMG Huazhen and PricewaterhouseCoopers Zhong Tian CPAs Ltd. with violating the U.S. Securities Exchange Act and the Sarbanes-Oxley Act.

On 20th March 2013 a judge approved a settlement by E&Y of a shareholder class-action lawsuit tied to the collapse of Sino-Forest Corp by the amount of US$117mn. The stag-gered legal process had involved 11 international financial institutions among which the big and the great Securities and Bank operators had tried to assess and resolve claims and counter claims.

Andritz 4

Berndorf inside back cover

EWS 21

Forbo Siegling 15

GreCon 11

IMAL 17

Paul 25

Sandvik 13

Scheuch 69

Schelling 71

Sia inside front cover

Siemplekamp back cover

Steinemann 23

Wemhőner 77

Vyncke 83

Advertiser’s indexThank you to all our advertisers for their continued support.

Fibre Based Panels Bulletin

Keep up to date with Fibre Based Panels Bulletin: contact us at [email protected] for a sample copy.

2 MDF YEARBOOK 2014/15

3

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5


7

Towards a Two-Tier Business PlatformBY LYNDA TARLING, MANAGING EDITOR

E D I T O R I A L F O C U S

Four main factors are identified as being largely

responsible for shifts in business competitiveness

in the industry and while these same factors

have always been present to a greater or a lesser

extent, they have combined to blur the former

boundaries between low-cost and high-cost

production regions.

The situation as observed, is largely a direct

result of reduced consumer spending and

increased competition (price discounted) from

lower-cost production sources and/or from

production inflexibility. When both situations

coincide, then company bankruptcy and a need

for restructuring become forceful threats, as has

become evident in recent years.

In the past three years (the interim recession

recovery stage) some producer companies in

the wood-based panels, furniture and interior

infrastructure and construction sectors became

insolvent. The earlier common practice adopted

by larger companies, of simply hiring people

and outgrowing their cost issues has effectively

disappeared, especially in China. It is very clear

that yesterday’s business interpretation of

‘Global’ is already changing. In the past, ‘Global’

has typically been used to include multinational

trading companies, supported by a string of

sales offices and multiple manufacturing sites,

linked to technologies and products aimed at

the established consumer markets of the USA,

Europe, and Japan.

The negative effects of the economic

downturn in the mature market-economy

regions impacted the ‘Gateway to Profitability’

across the ‘wood-based panel products’ industry’

as consumers reduced their spending on all but

essential items. Even in the expanding consumer

growth market regions, company profitability was

hard hit, because of an emerging large global

capacity-excess, especially in fibreboard product

arena. Since much of the global production

of MDF/PB panels represents high-volume

throughput of standard-grade materials, the

weakening demand scenario created a double

impact on overall panel exports from lower-cost

producer regions.

Interestingly, the current stage of

development in the product life-cycle demand

curve in the FB sector, has seemingly reached

a point of sufficient interest to attract private

equity and future’s investors. Such firms

have been waiting in the financial side lines

and recently have begun to acquire equity

holdings in some of the sounder status panel

producer companies.

Company managers have long recognised

the need, not only to rethink, but to revise

and replan their business models in order to

respond to a changing environment that

reflects the day-to-day needs of an ever

demanding commercial and macroeconomic

global trading infrastructure; its structural

segments; market forces, customer base;

financial aspects; product trends; and above

all, to create flexible business plans. Remember

that ‘Business Flexibility’ is the advised goal of

modern management.

In this edition of the MDF YEARBOOK we examine the fibreboard and particleboard product sectors as they emerge from the recessionary effects of the past seven years. We look at where the ‘industry’ sits today and how it may evolve up to 2020 in terms of the future drivers to business sustainability. The relative financial weakness of some of the larger panel companies in recent years has lowered the performance of the peer set as a whole. While some companies were better positioned to face the biggest challenges to sustainable business success during market volatility, others have been exposed to rising indebtedness and restructuring.

The negative effects of the economic downturn in the mature market-economy regions impacted the ‘Gateway to Profitability’ across the ‘wood-based panel products’ industry’ as consumers reduced their spending on all but essential items.

MDF YEARBOOK 2014/158

Too high a level of engineered production capacity exists across too wide a global arena to ensure long-term commercial sustainability among the large number of companies operating within the global fibreboard and particleboard manufacturing industry.

Business Sustainability in a Diverging World

Managers in high-volume manufacturing industry, such as generic fibre-

based panels, are often several stages removed from their final customer

base. Even in domestic markets, it is hard for businesses to achieve ongoing

sustainable profitability in today’s 24/7 consumer-oriented trading world. A

need for creativity and down-stream communication to combat competition

is hard to achieve for companies that are strongly reliant on exports to

overseas markets, in which business changes, consumer preferences and

life-styles shape the market place. Thus, remote management has no control,

little influence and often only a marginal awareness of sub-regional changes.

Overall shifts in supply-chain business arrangements are more demanding

of managements’ attention by way of business ethics and strategy. Today’s

younger generation of emerging business managers in the corporate or

private sector, are destined to view tomorrow’s business strategy in a more

flexible, less constrained and more customer focused manner.

This is not a new situation and a few years ago, senior management in

some of the world’s largest high-profile firms, like: Marks & Spencer, Tesco,

Wall Mart, Nestle, Sainsbury’s, IKEA and others admitted their concerns

over how to effectively captivate business strategy development and its

implementation. The level of ‘customer-focused achievement’ by these

same companies, who in theory are closest to their customer base within the

supply-chain, arguably still leaves questions unanswered.

Question? If management in many iconic companies in the Footsie

100 have been less than fully prepared to accommodate change, or

have been ill-positioned to effect fast response within their corporate

structure, then what happens to companies in those industries who

are positioned at ‘arms-length’ from their final customer base? The

recession has certainly concentrated managements’ attention on

company strategies, in every product market sector that directly focuses

on consumer needs, preferences and variable disposable income.

The generic wood-based panels industry is certainly a good example of a

customer-remote sector, in which management strategy is exposed to the

knock-on effect of consumer life-style changes. China is a prime example of

such exposure, largely because of the expanding size of its rising disposable

income consumer base. China however is not alone in this respect.

Management expertise is often constrained by lack of wider experience

in being able to recognise change before it happens. There are always some

firms who are ahead in the business game, depending on their product base,

market position, management perspective, objectivity, financial strength, etc.

Conversely, many businesses struggle to maintain solvency.

If one thing above all else has been proven over recent years, it is that

assessing sustainability is critical. As UBS Bank recently observed “ The

developed world debt bubble was not sustainable, and it is slowly and

painfully correcting. China’s investment-driven growth was not sustainable,

and it too is slowly and painfully correcting. In the diverging world, investors

will need to begin considering sustainability in all aspects of their portfolios.”

Easy to say, not so easy to accomplish.

IKEA is a prime example in this regard in which management decided

to enter downstream into the manufacture of fibreboard, as an alternative

to the need to rely on the down-stream provision of materials from third-

party suppliers. It was not by chance that IKEA management’s decision to

engage in the production of basic materials caused it to choose advanced

and flexible matt formation and control equipment to provide it with exactly

the type of furniture-quality material it required. Not only this, but IKEA having

acquired Pfleiderer Grajewo, Poland, chose to operate from two primary

manufacturing sites.

Accordingly IKEA Group increased its net profit by 3.1% to 3.302bn for

the financial year ending 31st August 2013 (3.3bn ye 2014) with sales of

28.7bn. Operating profit increased by 15.2% to 4.0bn. Interesting in context

is that IKEA in many ways was fortunate enough to be able to acquire the

Pfleiderer company’s named operations.

There are always exceptions to the ‘general rule’ in business. Sustainability

linked to corporate profit and loss, while they are aspects common to every

business in every industry, do not always reflect, appropriate or diligent

management. For example there have been too many cases of business

failures in the FB industry in the past three years.

The aggregated effects of the drivers to change can be very harsh. The

large number of companies that operate in the panels sector have certainly

been exposed to a growing, competitive and ‘sensitive’ market place. This

has been driven by everything from a shortage of people skills, market

remoteness and a number of business factors influenced by the digital

revolution, which imposes a so-called ‘flat’ trading world, in which there are

very few constraints to business entry.

A few financially challenged panel producing companies managed to

escape financial collapse, by consolidating their operations and by assets

disposal, but some companies did not manage to emerge from bankruptcy.

Pfleiderer AG, as one of the dominant panel producer companies of its day,

largely as a result of M&A activity and its timing, entered into bankruptcy. This

removed it from its prime market status position, forced the sale of various

production sites and ended up with a downgrade in its legal trade status from

an AG to a GmbH.

The FB market place, or more definitively expressed ‘ultimate

consumer demand’ as catered to by IKEA for example, is in a state of flux as is

commonly associated with the current position that FB holds on the Product

Life-Cycle Curve.

The current situation is confirmed by the earlier decision of the Binderholz

Group to cease operations at its MDF Hallein plant in Austria at the end of

March, 2014. The plant was built in 1999 but rising prices in industrial wood

Success in business, will be reliant on management’s wider perception and interpretation of the ‘what? and how?’ aspects imposed by a diverging global ‘customer focused’ business environment.

B U S I N E S S

9

and a ‘migration’ in the manufacture of furniture and flooring from Western

Europe to Eastern Europe and the Far East had persuaded major customers to

move their business away. The company ruled out a possibility of increasing

prices for its panels “because of a massive overcapacity.” Hans Binder, owner

and managing director of the Group noted: “In recent years, the Binderholz

Group. has done everything in their power to prevent factory closure. “In the

end, however, the financial pressure in the timber materials industry was far

too great and the competition from low-cost manufacturers was too strong.

“Most importantly, however, there is currently no sign of any future change in

the highly tense market situation regarding MDF boards.”

Accordingly, managers’ and business owners’ former objective as

dedicated to achieving and maintaining a ‘sustainable competitive advantage’

has effectively become compromised. The present route to achieving

competitive advantage may not be perceived as an absolute goal, but rather

as a means to oversee change and flexibility. In a similar way, today’s emerging

managers are destined to view business strategy values in a less confined,

more flexible and more ‘customer oriented’ manner.

Powerful senior executives seldom wish to hear or take heed of

knowledge among workers that a competitive advantage is fading away.

Eventually it is too late to respond. That is what happened at IBM, Sony,

Nokia, Kodak, and many other firms that found themselves in terrible trouble,

despite ample early warning signs from those working with customers.

The new approach involves a move away from former ‘product-

dedicated’ business strategies. At one time everything focused directly on

the product. The Ford model T car is one of the earliest high-profile, product-

dedicated examples, of which Ford sold well over one million cars. Eastman

Kodak, which placed the first simple camera into the hands of a world of

consumers and created the the Hollywood movies and home videos, also

ignored the emergence of the digital world and was forced into bankruptcy

in Jan 2012 after 130 years of trading. Kodak’s demise is considered to be

the classic example of a blinkered management attitude plus a zero response

to change that was created by a combination of technology advancement,

faster communications and changing consumer life-style patterns. Enough

said? Perhaps not!

If Kodak management had acknowledged that the implied route

to business success hinged on the avoidance of approaching product

obsolescence, it would probably still be in business. Today however, it is

no longer simply about obsolescence. The concept of product obsolescence

in today’s increasingly competitive trading arena appears much sooner on

the conventional product life-cycle curve, than it did in the past. Today’s

products and materials increasingly embody and reflect transient competitive

advantages. The status-quo is being engineered by the manner in which the

digital age is manipulating the creation and development of new products,

materials and applications, at the same time that it is cultivating wider

consumer awareness.

Management as a consequence will need to carefully review and to

appraise the merits and demerits involved in following a traditional, single-

focused, long-term business strategy, based solely on the manufacture and

supply of commercial industry and consumer market products. The basic

concept of a modern revised ‘business strategy’ in today’s fast moving

commercial world, needs to embrace a face-to-face flexibility that can exist

today and in theory be gone tomorrow. American companies took a lead on

this concept and moved into and out-of a product or business, based very

much on generated cash-flow and perceived ‘value’; sometimes moving back

into the same business that was exited on an earlier occasion.

Such an approach relies on a management strategy that is a big shift

away from former business strategies, because it presides over companies’

needs to constantly start new strategic initiatives that are linked to reviewing,

creating and exploiting many competitive merits and demerits. Management

in only a few firms has yet been seen to abandon the now considered to

be invalid assumption, that the achievement of long-term business stability

has to be the absolute ‘given’ objective and hence it is the implied route to

financial success.

This is not to suggest, that the ultimate basic business objective is

anything other than to ensure strong business continuity. This of course is

taken for granted. But the driver to tomorrow’s success in business, will be

reliant on management’s wider perception and interpretation of the ‘what?

when? how?’ aspects imposed by a different global business environment,

largely determined by a trading world that is not ‘global’ anymore!.

Within the global wood based panels industry, only a few firms are

currently recognised to fit this scenario. Thus, current business strategy

favours investigative analysis, which itself involves a broader understanding

and appreciation of so-called competitive arenas.

Thus the realm of changing business concepts, still involves industry-

level investigative market data, exploratory analysis, conventional product

evaluation and sales and supply aspects. But it also embraces a transient

competitive business advantage, which is less about generating a higher

profitability compared with close competitive rivals and more about

recognising, interpreting and responding to customers’ objectives .

A good example of this is the world’s first wooden super car

made from a combination of maple, ply and MDF. Interestingly, the earliest

cars were made of wood and over 100 years later, the search for light-

weight (almost disposable) car body ‘furniture’ is seemingly making a

return journey.

Currently there are no signs of any future changes in the highly tense market situation involving MDF.


Unilin Group, part of Mohawk Industries, acquired a majority of shares held by private equity company Ackermans & van Haaren (AvH) in Sofinim owners of Spano Invest, whose Belgian operations include a 700,000m³/yr PB mill with three continuous press production lines in Oostrozebeke; its Dekaply PB/MDF melamine laminating furniture plant in Erembodegem; and a lacquering plant in Merchtem. Spano Invest was also selling its 50% stake in its Trinterio joint venture, which included MDF/HDF producer Spanolux and laminate flooring producer Balterio, to its joint venture business partner Balta Group. Balta in return planed to sell Trinterio as an entity to the IVC Group, a producer of vinyl flooring with plants in Avelgem, Belgium (IVC Group headquarters) and IVC Wiltz, GD Luxembourg. Spanogroup and Unilin were both interested in the acquisition of the shares of Ackermans & Van Haaren. Following Unilin’s takeover of Spano Group, Belgium, in mid 2014, the company announced that it was investing more than €40mn in two of the three production lines in its Wielsbeke location to cut production costs. One of the Wielsbeke lines was to be gradually dismantled and the production rate of the two remaining plants (Wielsbeke and Oostrozebeke) were to be stepped up accordingly. Total production capacity was to remain unchanged.

Company Mergers & Acquisitions

B U S I N E S S

Tricoya Technologies Ltd. via Accsys Technologies entered into

a joint development, production and distribution license agreement with

Medite Europe Ltd. to build and operate a plant to manufacture an initial

42,000m³/yr, of Tricoya® MDF panels, with a time limited option to increase

capacity upon payment of additional fees. Board approval is targeted for

mid-2014 with plant completion aimed for by end 2015. Accsys developed

and commercialised Accoya wood which is characterised by its durability,

dimensional stability and reliability properties and have been replicated in the

wood fibre used to manufacture Medite Tricoya.

Daiken Corp., Japan, was to acquire a 51% financial stake in

C&H Co. Ltd. a wholly-owned subsidiary of MDF producer Hokushin Co. Japan,

effective to an agreement made on January 31, 2013. Daiken, produces MDF

and is mainly engaged in the manufacture and sale of wood interior building

materials and housing equipment.

Proteak Uno S.A.B. de C.V. was involved in the acquisition of Forestaciones Operativas de Mexico SA de CV, (FOMEX) the national

eucalyptus plantation business of industrial conglomerate Grupo

Kuo. Proteak will thus have resource to the FSC cer tif ied eucalypt

plantations in Tabasco and its neighbouring states Oaxaca & Veracruz.

Proteak Uno, secured a US$90mn loan from Commerzbank,

Germany to fund the construction of a green field 115,000m³/yr MDF

plant near Huimanguillo in the state of Tabasco, Mexico for operation

by the first quar ter of 2015. The Project is par t of a US$140mn forestry

project that will encompas about 8,000ha of eucalyptus forest. It

will be the company’s f irst large-scale industrial plant for wood-

based products. Proteak has over 18,000 ha of teak and eucalyptus

plantations in Mexico, Costa Rica and Colombia, making it the largest

forestry plantation operator in Mexico and Central America. This is

currently the largest forestry and timber project in Mexico and Proteak

will be creating around 500 jobs in Tabasco as a result.

Sonae Industria’s French subsidiary Isoroy’s total PB production capacity fell to 6.2mn m³/yr following the sale completed

in March 2014, of the company’s Auxerre and Montchanin-Le Creusot

plants to the Kronospan Group. Sonae Indústria, planned to reduce

production at its Glunz par ticleboard plant in HorBad Meinberg,

Germany because of industry overcapacity and lower demand for PB.

It will instead focus on its on-going strategy to reduce the group’s

industrial footprint and to concentrate on its more ef f icient and

profitable operations.

Duratex, Brazil acquired 80.62% of the equity capital of Tablemac, Columbia following its latest tender of fer made in January

2014. Duratex has a production capacity in MDF of 2,180,000m³/yr

and Tablemac has a capacity of 285,000m³ based on MDF Yearbook

data. The engineered combined plant capacity in PB is 795,000m³

and in MDF 240,000m³. The completion of the transaction saw the

exit by SierraPine from the production of f ibre-based panels. The

transaction of fer price was not released but was above US$107mn,

plus a variable amount of up to $13mn.

Flakeboard America Ltd., a US subsidiary of Celulosa Arauco y Constitucion SA, agreed in January 2014 to buy the western US

panel assets of SierraPine, a California limited par tnership, consist-

ing of two par ticleboard plants located in California and Oregon, and

an MDF plant in Oregon. The Arauco plants in Nor th America thus

have an installed panel capacity of 2 billion feet sq. f t . (¾” basis)

or 3.5 mn m³, adding to the capacity of the panel plants that Arauco

operates in Brazil, Argentina and Chile.

Arauco US and Canada became combined under one organization

as Arauco Nor th America ef fective August 1, 2014. The primary

objective of the reorganization has been to position for growth and

provide comprehensive solutions to customers using a more ef fective

and ef f icient operating plat form.

11

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Fibreboard Producer Company Business Comparisons

B U S I N E S S

The accompanying fibreboard producer company business and operational profile charts have been selected to provide a comparison of how new and old established companies in different countries, during the past seven years have expanded their operations, or not, by investment and M&A. The charts (graphic images) have been compiled using information obtained from company financial accounts and annual reports.

Each of the companies operate in a different market place and each company

differs by underlying business/production/location and raw material access

strengths, as do their profitability ratings. The linking of specific company

information as presented, with general trends observed within the fibreboard

and related panel products industry, provides an underlying ‘business Global

Positioning System (GPS) route’ to signal the present destination to which a

majority of companies are being driven, or are directly heading.

Barriers to future profitable destinations are already appearing. Moody’s

recent observation in a related context, that: “Most corporate strategies

remain unchanged, despite recent management changes.” says a lot. Moody’s

added, that while the relatively high number of new senior management

appointments could indicate that a corporate strategy refocus is about to

take place, the initiatives the companies have subsequently announced are

in line with their existing strategies. “Challenges will persist for companies

with narrower product focuses.” This all adds up to a strong management

message to ‘Watch Out’.-

Fibreboard Producers Heading Where and Why?Future levels of capital expenditure (capex), in fibreboard (MDF/HDF/)

manufacture on a sub-regional scale, will probably decline in the face of

secular reduction in market demand verses ongoing excess engineered

production capacity. Capex includes spending on greensite plants, to include

enhanced and updated machine and processing equipment, across a broad

group of main-stream panel producer companies.

Many new plants have been built in low production cost regions with a

strong focus on product exports to mature economy regions. Given that a

typical three year’s ‘start to finish’ time span between order placement and

first production on a new fibreboard line, has often coincided with the slow

annual rise in consumer-led demand in mature economy regions for down-

stream converted panel materials products, The inevitable result has seen a

boost in underlying panel manufacturing capacity. This situation is common

on both a global and a sub-regional scale and has affected stability in the

primary and secondary supply chains. Future capex will favour discrete areas

of manufacture, product development, composite panel materials, hybrid

and secular market catchment areas.

Corporate profitability has generally weakened across the fibreboard

industry, although trading improvement in the financial year-end 2014 signals

an upward movement as the more diversified fibre-based panel producers

have posted solid EBITDA growth as seen in the accompanying charts. An

important observation is that the improvement in the financial performance

of these companies is a reflection of managements’ strained efforts to

reposition, or to broaden their business profiles. This situation poses serious

challenges for many existing companies that operate within too narrow, or

too broad a product range. Examination of the product catchment areas of

some companies borders on the ‘extraordinary’ and this is likely to favour the

disposal side of M&A, which in future is expected to become a heightened

activity across the generic panels industry. M&A may be at a slow pace

because of the dominance of privately-owned companies in the industry, for

which comparable financial data is withheld.

However, seeking out suitable M&A companies is not easy and it is

known that several ‘M&A Gatherers’ have not been able to find suitors. A

significant number of companies in Asia, South America and other sub-

continents are judged to have substantial debt obligations following large

capital investments in new plant and equipment, which calls for sufficient

liquidity to fund indebtedness obligations. In the absence of detailed financial

data, it is not an easy task to single-out respectable M&A entities, financially

or otherwise, in an overall market environment that one way or the other is

subject to changes.

Meanwhile, expansion plans continue to drive capital expenditure (capex)

on new plant and equipment across many regions and thus continues to reflect

the recent years of high level capital expenditure among a large percentage

of panel producing companies. In consequence, the level of sub-regional

rated production capacity in the majority of cases exceeds current levels of

market demand both on a domestic scale as well as in most export targeted

countries. Brazil, is a current example of over-capacity where significant new

plants/lines have been added and from which surplus domestic production

has been aimed at export markets that already face over supply.

The scenario as broadly described, points to future capex being aimed

at the more discrete areas of: Manufacture, alternative product development,

composite panel materials, hybrid/ recyclable and secular market catchment

areas. Interestingly, while there has been a steady rise in the installation of

high-volume production plant and lines (400,000-700,000 plus m³), there is

also a supporting demand for small volume (30,000-50,000m³) lines in the

same producer regions.

There are various underlying reasons for such an apparent anomaly in

what is seen to be an emerging scenario, which for many companies in

the fibre-based panels production sectors will mean that, ‘Global will not

be Global anymore’. A similar change in business environment has in the

past been experienced by other manufacturing industry sectors. Thus, the

fibre-based panels conglomerate industry is virtually certain to begin to follow

a shift in investment strategies and structural change in a similar fashion to

the routes that were adopted a number of years ago by the ‘pulp, paper/

paperboard’ and the ‘paper/plastics’ based packaging industries.

The two noted industries have features in common with the generic

‘panels’ product industry in terms of managements’ responsiveness to:

Consumer life-style changes, demand preference and sub-regional supply-

chain centrics. The ‘panels’ industry however is still well behind the business

strategy and directional changes that were introduced across the enormous

scale of the packaging industry.

It is not by chance that management in the prime products upstream

packaging industry, about 12 years ago began to sideline the dedicated goal

of ‘ 24/7 production’ and engaged in a massive structural change in which

M&A at the time, proved to be the core solution to securing company stability.

In this respect the ‘panels’ products industry has much more in common

with the paper and board industry. Interestingly, the mature and expansive,

high volume 24/7operational paper sector itself has delayed in addressing

13

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the down-stream effects of information technology on the demand for

publication paper, especially newsprint.

Today’s management in the paper industry has been slow to address the

distinct and growing challenge arising from the day-to-day reality of paper-

displacement IT technology. Moody’s recent comment on the above lines,

notes that some lead paper companies are very exposed and as an example

points to Sappi, as not having paid a dividend since 2009. Sappi however, is

not a member of an isolated industry!

15

The fibre-based panel manufacturing industry (FBPI) is heading for a change in its structural base on a sub-regional scale in response to the upstream effects of consumer life-style changes in both the emerging and the mature economy nations. It can be observed that ‘Global in not Global anymore’ in the context of how this may be ‘charted’ following the recession.

Industry Data Viewed in a Different Way

Today’ management has become less interest-

ed in descriptive editorial of a traditional style

and prefers to seek specific subject focused

data. To meet this preference, the editors have

created a special series of subject-defined

data charts. The charts not only reflect basic

changes, but they also serve to graphically

highlight where the overall panels industry and

its product sectors are currently positioned in

regard to product and business sustainability on

a sub-regional and regional scale.

The message to management that is por-

trayed in some charts, is not as simple as it

may at first seem. In some cases, one or more

charts may appear to be in conflict, because

they present a fresh analytical view of industry-

specific data that is available. On this particular

point, readers’ attention is especially drawn

to the discursive on “Global Production

Capacity Contention.“

The generic fibre/wood-based panels in-

dustry has followed a typical market expansive

development route along the conventional

product life-cycle curve. The nearest equivalent

industry example is the packaging industry,

which has certain similarities with FBPI, but for

obvious reasons packaging has endured along

a much more protracted time scale, compared

with the FBPI.

The packaging industry was able to

develop largely within its own product con-

fines, whereas the FBPI has been more

exposed to competitive and substi-

tute products and sub-regional end-user

demand differences. Commercial sustainabil-

ity across the FBPI involves a number of con-

straints, which have to do with: Excess manu-

facturing capacity vs demand on a regional and

sub-regional scale; weak or zero net profitability

for many companies; limited or restricted fi-

brous raw material resources; competitive or

leveraged alternative end-use demand for the

same, or similar raw materials; manufacturing

inflexibility, etc. The FBPI however is poised to

enter a new development period as a typical

extension of the maturity stage in the traditional

product life-cycle.

A current and forward data-based manage-

ment awareness profile of the FB/PB industry is

graphically presented in the numerous charts in

the various content sections.

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A N A LY T I C S

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A N A LY T I C S

China’s FB/PB SectorCapacity Overview & Projection

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China’s MDF machinery market has seen a slowdown in recent years following an earlier boom period running from the 1990s to the early 2000s when demand for MDF experienced rapid growth due initially to a sharp increase in furniture exports, in particular to the United States.

China: MDF Machinery Market Demand Slows as Exports Rise

Demand for MDF continued to grow, and encouraged more companies

to install MDF production lines, as China’s domestic market for furniture

and interior fittings started to expand rapidly as the country’s housing

construction market started to boom.

Shanghai Wood-Based Panel Machinery Co Ltd. (SWPM) has been a

leading supplier of MDF machinery in China for the past three decades.

Now owned by Deiffenbacher of Germany, SWPM is one of the world’s

largest producers of multi open-face MDF machines and has recently

become an important supplier of 4ft continuous presses to the Chinese

domestic market.

New machinery contract signings have slowed down in China over

the past year due to a number of reasons, according to Li Jie, SWPM’s

International Sales Department manager. The large installed MDF pro-

duction capacity in China is one important factor, which is discouraging

new investment when existing manufacturing facilities already exceed

MDF demand.

“The China market is still in the process of slowing. Environment

protection is becoming more and more important, and investment in

real estate is slowing,” Li Jie said. “Also, China’s MDF and PB production

capacity is much bigger than consumption.”

Unlike other countries where PB production has often grown faster

than MDF, China’s furniture manufacturers and timber decorative con-

struction fittings producers favour MDF as is the dominant panel board

used in furniture making and residential kitchen and bathroom cabinets

and worktops.

PB production has started to grow recently as some large new lines

have been installed, while MDF has managed to retain its domestic wood

panel market share. “The market in general is stable, it ’s not good and not

bad. MDF is still popular,” Li Jie commented.

SWPM produces several different MDF and PB presses in a number

of sizes. It ’s 4ft Contiplus continuous press MDF line is supplied domesti-

cally and exported with various models being available ranging in capac-

ity from 300m³/day to 600m³/day.

SWPM also supplies its multi-opening hot press MDF line which rang-

es in capacity from 150m³/day to 400m³/day. The 4ft x 8ft and the 4ft

x 16ft models are supplied locally and exported while the 6ft x 12ft and

the 6ft x 18ft are only exported at present. SWPM PB lines for the local

market and export include it ’s 4ft Contiplus continuous press of 500m³/

day to 740m³/day capacity, which also includes technical support from

Dieffenbacher’s head office in China and overseas.

The company also supplies locally and exports its multi-opening hot

press PB line which makes 4ft x 8ft board, while it ’s 6ft x 9ft and 6ft x 12ft

multi-opening hot press PB lines of 180m³/day to 500m³/day capacity

are only for export.

In China, five of SWPM’s newly installed 4ft Contiplus continuous

press lines of between 400m³/day to 650m³/day started commercial

production in 2013, plus three newly commissioned lines in 2014. Six

lines of between 500m³/day to 600m³/day ordered in 2013 and 2014

have still to enter commercial operation. Also, five of SWMP’s newly in-

stalled multi-opening MDF lines of 50,000m³/yr to 80,000m³/yr entered

commercial operation in 2013 and one in 2014. A further four new lines

contracted in 2013 and 2014 have still to enter commercial service.

Asked which of the company’s MDF and PB lines are most popular,

Li Jie replied: “Our 4ft x 8ft and 4ft x 16ft multi-opening press MDF lines

and 4ft x 38.9m Contiplus continuous press lines are popular in China.

SWPM has been a leading company in this market for many years with a

big market share. “We guided the MDF industry’s development in China.”

Meanwhile, SWPM’s exports of MDF and PB lines is growing as the

company’s machines become better known among wood panel board

manufacturers worldwide. “We export MDF and PB presses to many

countries, such as Brazil, Mexico, India, Vietnam, Thailand, Iran, Belarus,

Poland, Slovakia and others,” Li Jie said. “The sales trends in 2014 show

that some markets in South America and the Middle East are developing

very well.”

According to SWPM, the company supplied an 80,000m³/yr multi-

opening line to Vietnam, which started commercial operation in 2013 and

a 40,000m³/yr line to Mexico, which started up in 2014. The company

also received overseas orders for two 40,000m³/yr multi-opening lines

from Mexico in 2014 and for one 120,000m³/yr line from Iran last year.

Asked whether SWPM expects its MDF and PB machinery exports to

grow in 2015, Li Jie replied: “We hope so. Possible projects will be from

countries such as Brazil, Iran, India, Thailand, Indonesia, and some from

Africa as well.”

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G L O B A L P R O D U C T I O N C A P A C I T Y L I S T I N G S


GPC Figures in Contention

The compilation and updating of the Global/Regional company production-

capacity listings that follow, has demanded many hours of information

collection and data cross-checking. In so doing, access to individual company

on-line information has been most useful as a means of validating company

information and also in other respects. However, inconsistencies and

variations are quite often found to exist in the accuracy of information that

is available. For instance, the information stated on the websites of large

corporate companies, or company groups, sometimes differs from the

statements and announcements made by different subsidiary companies,

or operating divisions within an organisation. It appears very seldom that this

can this be attributed to language translation.

Differences also often arise in the ‘quoted or claimed’ production capacity

figures of a named company and even in the stated locations of green-site

production plants. Not only this, but also quite often, the rated engineered-

production capacity of a new line as reported by a particular supplier, will differ

from the capacity figure announced by the company who placed the order!.

Perhaps the most likely answer for such a discrepancy is that the company

placing the order sees this as an opportunity for ‘capacity exaggeration’ as a

means of leveraging commercial ‘One Upmanship’, with the possibility that

competitors may delay plans for their own capacity expansion. This is not

an unknown practice, and also applies to other industries, to the point that

sometimes a company will announce a new capital investment project and

continue with excuses linked to delays, without ever having any intention of

further commitment to invest in a project.

It is well understood of course, that the nominal rated engineered-

production capacity, of a new line at the time of ordering, is ultimately

dependent on a number of in-plant manufacturing variables, such as raw

material consistency, volume throughput/order changes, maintenance, etc.

There are few hard and fast rules, but actual practical operating production

limits only become apparent after a new line becomes fully commissioned.

This is not of course related in any way to the initial basic engineered-

production capacity of a specified line, at the time of ordering.

In reality, the production capacity figures for the majority of panel

producer companies operating in the main sub-continental regions are

available. Inevitably anomalies and inaccuracies arise in the cross-matching of

individual company capacity figures that apply to the different generic panel

materials. The MDF YEARBOOK production capacity figures in the Global

Company Listings are based, either on the initially-designed engineered-

capacity of the line(s) when installed; or on subsequent achievable volume

output levels as stated by the producing company.

As ongoing changes in production variables occur on a regular basis,

it is understood that the rated capacity levels only signify a ‘bench-mark’

maximum achievable production output based on a theoretical assumption

that at any given time, every company on a sub-regional and global scale was

able to produce at a maximum volume capacity. While this never happens,

the aggregated total capacity figures are important because they provide a

basic input to making analytical assessments of regional forecasts linked to

demand, economic growth, industry profitability and related aspects.

Regrettably therefore, varying levels of inconsistency exists between the

capacity levels reported by primary and secondary industry-wide information

sources. These sources typically include: Federations, Associations, UNECE/

FAO, Universities, Financial Analysts, Consultants, Management Reports and

Industry Magazines.

The overall extent of information disparity is sometimes extensive, with a

result that serious concern arises over the level of accuracy and reliability of

data published by certain ‘high-profile’ sources. At a lower level, one example

is a management report published in 2014 on the global wood-based panels

producing industry that refers to changing business and financial competition

dynamics, etc. The report introduction mentioned seven top ranking Asia-

Pacific panel companies. Yet only two of the named companies are eligible

for selection in terms to their being actual producers of wood-based panels.

For this very reason, our editors and correspondents are very careful not to

include companies that directly claim (or via language translation) to be panel

‘producers’, but do not themselves manufacture basic panel materials.

In another recent report dedicated to “Fibreboard Panel Manufacture”, a

total mismatch arose because of a lack of ability by the compiler to distinguish

the difference in meaning between fibreboard panel producers and

corrugated fibreboard producers. In the corrugated board industry it is quite

common to refer to fibreboard without the prefix of corrugated as the industry

is familiar with its truncated internal language. Thus, the costly management

There is no single, primary, global information source, that details all individual companies’ production involvement in all the basic wood/fibre based panel materials.

27

report that claimed to provide extensive comparative company and market

data, consumption and forward demand forecasts across the wood-based

panels industry, was compromised to the point of being less than useless!.

Moreover, buyers of this costly report from outside the industry, may not have

been aware of the erroneous miss-match.

Of potentially greater concern however, is a high-profile, well documented

and charted analysis of supply and demand relationships across the global

wood/fibre panels sectors and in which several discrepancies exists in the

perceived accuracy of regional production capacity figures as documented. In

this instance, the sources of information are separately noted, which points to

an endemic problem linked to third-party compiled data inaccuracies based

on an element of incompleteness. For example, a country in Europe, which

only has two panel producing local operating companies, as reported has

a -19% gap in the two plant’s total engineered capacity. In the case of this

single country example, the figure hardly presents a major problem, other

than that it is incorrect. Yet, in the same year, the total gap evident in the

European-wide total capacity level as reported, amounts to 21.6%. This is

the equivalent of 17,000,000m³, based on the MDF YEARBOOK company

listings and capacity data.

This is too large a number of missing companies and related capacity

figurers on a sub-regional scale to simply be excused on the basis of

inaccuracies. Accordingly, this raises an ultimate question of what are the

likely downstream effects that unreliable information may have on analysis

involving: Trade flow patterns, production vs demand, raw materials demand,

manufacturing investment, competition, sustainability, etc.

Unfortunately this is not the place to attempt to provide specific answers to

the above question, nor to pinpoint the information sources that are viewed

as being in contention. However, the answers to the question are deemed

to be obvious enough and a detailed examination of the updated FB/PB

capacity situation is included in this issue of the Yearbook.

The subject of over-capacity in the main sub-regional producing areas

and related aspects are on the agenda for discussion and debate, during the

forthcoming International Fiber/Wood-Based Panels Conference in Chicago,

IL, USA, November 11-12th organised jointly between the MDF YEARBOOK

and AWA Alexander Watson Associates.

The number of missing companies on a global scale that would account for such a capacity difference when based on the typical operating capacity of plants in Europe alone, is in the order of 175+.

Global MDF Listing 2015

EXPLANATORY NOTESCompanies or their subsidiaries, or group affiliates, which may or may not

trade as a separate entity, or trade under a different name, or retain their

original company name within a new group ownership following a merger

or sale, will appear grouped together in a single colour band in the region or

individual country in which they operate. The prime operating company or

corporate group owner is listed alphabetically and is followed alphabetically

by any subsidiary or affiliate companies trading under a common name or

a different name and producing the appropriate panel within the product

listing. The same colour is used to identify any group of companies within a

corporate umbrella throughout the entire listing to avoid confusion.

1. Company Group(s) or Companies with sub-divisions that trade sepa-

rately, and/or wholly-owned affiliates which trade within a group um-

brella name, but which may have separate business trading names, are

grouped together when they have operations (plants) that are located

in the same region/country.

2. Names of companies in various countries that are commonly prefixed

with a number of letters, e.g., OOO; LPK, followed by the principle name

of the company are listed alphabetically by the first or principal trading

name. In this case the company listings are structured so that the prefix

letters are placed after the main name. For example OAO Mostovdrev,

appears as Mostovdrev OAO. This is so that companies can be indexed

appropriately.

3. Capacity figurers shown for each company are based on information

gathered from various sources, mainly machinery suppliers and com-

panies themselves. Engineered capacity figurers shown against each

company are subject to permanent changes as a result of additional

equipment or updating and are noted when advised. In certain cases,

new production lines are ordered as a replacement, or an addition

to existing lines in a single or dual plant on a single site. The engineered

capacity for any company or operating subsidiaries as noted above,

may be shown as a single figure for each production line, or shown

as a single total for a plant. In cases where new lines are on order for

an existing plant and part delivery has taken place, the rated capacity

of the line/plant as specified is included. This means that in any

single year, the installed sub-total engineered capacity per country

or region, in practical terms may not be in place (installed).

Since the company capacity listings cover the years: 2013-2014

and 2014-2015, then an unknown flexibility (delay) can exist

in the capacity figurers. The same applies in cases where plants have

closed and have reopened at a much later date, which may not have

been announced.

FIBREBOARD ACHIEVABLE PRODUCTION CAPACITY: NORTH AMERICA

Country Company/Group Location 2013-2014 2014-2015

Canada Flakeboard (Celulosa Arauco y Constitucion SA, Chile) St. Stephen, New Brunswick 191,000 191,000

Flakeboard (Celulosa Arauco y Constitucion SA, Chile) Sault Sainte Marie, Ontario 310,000 310,000

Flakeboard (Celulosa Arauco y Constitucion SA, Chile) Sault Sainte Marie, Ontario 150,000 150,000

Uniboard Canada - Arauco (ex Kaycan Ltd. -ex Pfleiderer ex Kunz) Mont Laurier, Quebec 150,000 150,000

West Fraser Mills Ltd. (ex Blue Ridge Lumber) Blue Ridge, Alberta 283,000 283,000

WestPine MDF (West Fraser) Quesnel, British Columbia 248,000 248,000

Total Canada 1,332,000 1,332,000

Mexico Del-Tin Fiber LLC (Deltic Timber Corp ex Tin/Temple Inland/IP) Arkansas 275,000 275,000

Duraplay de Parral SA de CV Chihuahua 200,000

Industrias Emman de Ocotlan Ocotlan, Jalisco 35,000 35,000

Maderas Conglomeradas, (Macosa) Cuidad de Mexico 60,000 60,000

Maderas y Sinteticos S.A. (Masisa) Durango 200,000

Rexcel S.A. de C.V Maderas y Sintéticos de México S.A. (ex Grupo Kuo) Chihuahua 200,000

Proteak One S.A.B. De CV Tabasco, Huimanguillo 115,000

Total Mexico 370,000 1,085,000

28



USA Arauco Panels USA; ex Uniboard USA LLC, subs Pfleiderer in 2012; ex ATC Panels Moncure, North Carolina 330,000 330,000

Flakeboard America Ltd. (Arauco, Chile ex-Weyerhaeuser) Malvern, Arkansas 310,000 310,000

Flakeboard America Ltd. (Arauco, Chile ex-Weyerhaeuser) Eugene, Oregon 154,000 154,000

Flakeboard America Ltd. (Arauco, Chile ex-Weyerhaeuser) Bennettsville, South Carolina 251,000 251,000

Flakeboard America Ltd. (Arauco, Chile ex-Weyerhaeuser) Stephen New Brunswick 108,000 108,000

ATC Panels Inc Shippenville, Pennsylvania 239,000 239,000

CMI/Craftmaster Manufacturing Towanda, Pennsylvannia 177,000 177,000

Great Lakes MDF LLC Lackawanna, New York 120,000 120,000

Clarion Boards Inc. MDF/HDF Shippenville, Pennsylvania 140,000 140,000

Kronospan (P & M Kaindl) Eastaboga, Alabama 240,000 240,000

Kronotex USA Holdings (E. Kaindl) Barnwell, South Carolina 440,000 440,000

Langboard Inc Willacoochee, Georgia 240,000 240,000

Medite MDF (Sierra-Pine ex Medite) Medford, Oregon 250,000 250,000

Norbord Inc., (subs Nexfor Canada) Deposit, New York 160,000 160,000

Pan Pacific Products (Dominance Industries Inc) Broken Bow, Oklahoma 130,000 130,000

Paragon Panels of Alabama LLC Clayton, Alabama 264,000 264,000

Pembroke MDF (ex ATC Panels) closed since 2008 part reopened Pembroke Ontario 133,000

Plum Creek Timber Co Inc Columbia Falls, Montana 560,000 560,000

SierraPine Medford, Oregon 240,000 240,000

Roseburg Forest Products Holly Hill, South Carolina 100,000 100,000

Temple Inland (bought by International Paper in 2012) Mt. Jewett, Pennsylvnia 255,000 255,000

Temple-Inland (jv Del-Tin Fiber Fiber) El Dorado, Arkansas 285,000 285,000

Unilin US MDF (Mohawk Industries) Mt. Gilead, North Carolina 250,000 250,000

Total USA 5,243,000 5,376,000

TOTAL NORTH AMERICA 6,945,000 7,793,000

FIBREBOARD ACHIEVABLE PRODUCTION CAPACITY: SOUTH AMERICA


Argentina Arauco, Chile (Alto Paraná LD Manufacturing SA) Puerto Piray, Misiones 300,000 300,000

Masisa (Grupo Nueva) Concordia, Entre Rios 280,000 280,000

Tableros Guillermina (Ferrum ) Villa Guillermina 45,000 45,000

Total Argentina 625,000 625,000

Brazil Asperbras Aqua Clara 200,000

Berneck Aglomerados Araucária, Paraná 345, 000 345, 000

Berneck Aglomerados Curitibanos, Santa Catarina 500,000

Duratex ex Satipel Industrial S.A Agudos, São Paolo 250,000 250,000

Duratex ex Satipel Industrial S.A Lines 2 Agudos, São Paolo 750,000 750,000

Duratex ex Satipel Industrial S.A Botucatu 450,000 450,000

Duratex ex Satipel Industrial S.A Itapetininga, São Paolo 520,000

Duratex ex Satipel Industrial S.A Minas Gerais, Uberaba 350,000 350,000

Duratex Triângulo Minerio, Minas Gerais

Eucatex MDF São Paolo 350,000 350,000

Fibraplac Paineis Maderia SA (Isdralit Group) Glorinha, RS 420,000 420,000

Fibraplac Paineis Maderia SA (Isdralit Group) Glorinha, RS 250,000

Floraplac (Grupo Concrem) Paragominas 220,000 220,000

Floraplac (Grupo Concrem) THDF Paragominas 320,000

29

Forestal Arauco SA (former Placas do Paraná; ex Tafisa-Sonae) Lines 2 Pièn, Paraná 530,000 530,000

Guararapes Paineís Ltd.A Caçador, Santa Catarina 200,000 200,000

Industrias de Compensados Sudati 120,000 120,000

Industrias de Compensados Guarapes 120,000 120,000

Masisa (Grupo Nueva) Jaguariaiva, Paraná 310,000 310,000

Masisa do Brasil (Grupo Nueva) 2 lines Ponte Grossa, Paraná 280,000 302,000

Placas do Brazil SA (ex Tafisa Brasil (Sonae Indústria) 2 lines Pièn, Paraná 342,000 342,000

Placas do Brazil SA (ex Tafisa Brasil (Sonae Indústria) 1 line Pièn, Paraná 270,000 270,000

Placas do Brazil SA (ex Tafisa Brasil (Sonae Indústria) Pinheiros 180,000

Sudati Paineís Ltd.A Santa Catarina 220,000 220,000

Total Brazil 5,182,000 7,174,000

Columbia Tablemac MDF S.A.S. LDF (Duratex 82% partner) Barbosa, Antioquia 155,000 287,000

Tableros de Fibras (MDF) Barbosa, Antioquia 92,000 92,000

Total Columbia 247,000 379,000

Chile Masisa (Grupo Nueva) Cabrero 280,000 280,000

Masisa (Grupo Nueva) Coronel, Concepción 150,000 150,000

Paneles Arauco 2 lines (165,000 & 350,000) Trupan-Cholguan 515,000 515,000

Polincay La Unión 150,000 150,000

Total Chile 1,095,000 1,095,000

Ecuador Aglomerados Cotopaxi S.A ACOSA (Gem Corp) Lasso (Quito) 70,000 70,000

Novopan del Ecuador 200,000 300,000

Total Ecuador 270,000 370,000

Uruguay Urupanel SA Aglomerados Cotopaxi S.A ACOSA (Gem Corp) Tacuarembó 105,000 105,000

Total Uruguay 105,000 105,000

Venezuela Masisa (Grupo Nueva) Puerto Ordaz 310,000 310,000

Total Venezuela 310,000 310,000

TOTAL SOUTH AMERICA 7,834,000 10,058,000

FIBREBOARD ACHIEVABLE PRODUCTION CAPACITY: SOUTH AFRICA & THE MIDDLE EAST


Rep of S. Africa Sonae Novobord, (ex Sappi ) (Sonae Industria) White River 110,000 110,000

FX Veneers & Industrial Development Corp (government) Mpumalanga Highveld 215,000 215,000

FX Veneers & Industrial Development Corp (government) Mpumalanga Highveld 200,000

Bison PG (KAP Ind Holdings Ltd. & Steinhoff International Holdings Ltd.) Johannesburg, Boksburg 140,000 140,000

Total South Africa 465,000 465,000

Malawai Raiply EPZ Ltd. Malawi Lilongwe 100,000 100,000

Total Malawi 100,000 100,000

Tunisia Medwoods (Groupe Poulina) Grombalia 30,000 30,000

Stibois MDF (MDF/HDF) Grombalia 32,000 32,000

Total Tunisia 62,000 62,000

TOTAL AFRICA 627,000 627,000

30



Iran Arian Chemie Inc Sari 139,000 139,000

Arian Sina Mazandaran, Sari 120,000 120,000

Arta Pan (Arta Industrial Group) Ardebil Iran 150,000 150,000

Caspian Sea MDF Terhan 165,000 165,000

Jahat Tahghighat Group (JTG) Sugar Cane Development & By Products Co Shoaibieh, Khuzestan 150,000 150,000

Neopan (Bartar) Mashad 310,000 310,000

Neopan (Pars) Tonekabon, Nashtaroud 75,000 75,000

Neka Choub Co Sari Mazandaran 75,000 75,000

Sanaye Choob Khazar Amol, Mazandaran 47,000 47,000

Takhte Feshordeh Bartar Bartar 75,000 75,000

Total Iran 1,306,000 1,306,000

TOTAL MIDDLE EAST 1,933,000 1,933,000

FIBREBOARD ACHIEVABLE PRODUCTION CAPACITY: ASIA PACIFIC EXCLUDING CHINA


Australia Alpine MDF Industries Pty (Sumitomo Forestry Group) Wangaratta, Vic 150,000 150,000

Borg Mfg (ex CHH ) Oberon, NSW 260,000 260,000

Laminex Group (Fletcher Building Ltd.) Gympie, Queensland 246,000 246,000

Kewdale, W. A. 120,000 120,000

Total Australia 776,000 776,000

Bangladesh Akij Particle & Hard Board Mills Ltd. (Akij Group) Torraghat, Manikgonj 250,000 250,000

Total Bangladesh 250,000 250,000

India Associate Decor ex Star Panel (jv Associate Group/Kings Wood ) Malur Karnataka 250,000 250,000

Associate Decor ex Star Panel (jv Associate Group/Kings Wood ) Bangalkore 140,000 140,000

Bajaj Eco-Tec Products Palia Kalan 80,000 80,000

Bajaj Eco-Tec Products Kundarkhi 80,000 80,000

Ecoboard Industries- EIL (former Western Bio Systems Ltd.) Solapur Maharashtra 66,000 66,000

Greenply Industries Andhra Pradesh

Greenply Industries Pantnagar Rampura 200,000 200,000

Greenply Industries Rudrapur, Uttarakhand 200,000 200,000

Mangalam Timber Products Ltd. (Burla Group) MDF/HDF Kolkata 60,000 60,000

Nuchem Ltd. Tohana, Haryana 60,000 60,000

Rushil Decor Chikmagalur, Karnataka 90,000 90,000

Shirdi Industies Uttarakhand 45,000 45,000

Teekays MDF (I) Ltd. Karnataka, Bangalore 100,000 100,000

1,371,000 1,371,000

Total India 1,371,000 1,371,000

Indonesia Agro Lines, Chacheongsao Jambi, Sumatra 85,000 96,000

Canang Indah Medan, North Sumatra 100,000 100,000

Hijau Lestari Raya Fibreboard JV Evergreen & Hutrindo 51/49%, Palembang, Sumatra 120,000 120,000

Hutrindo Jaya Fibreboard Palembang, Sumatra 95,000 100,000

Indonesia Fiberboard Industry PT (former ATR) Daerah Khusus Ibukot, Jakarta 250,000 250,000

Khon Kaen MDF Board Co. Samut Prakan 25,000 25,000

Masari Dwisekepat Fibre (Mukti Group) Karwang, West Java 90,000 90,000

Metro Group Kanchanaburi 90,000 90,000

31

P.T. Sumatera Prima Fibreboard (Super thin MDF) Palembang, South Sumatra 300,000 300,000

P.T. Sumatera Prima Fibreboard HDF Palembang, South Sumatra 170,000 170,000

STA Group, Hat Yai 100000 Palembang, Sumatra 30,000 30,000

Sumalindo Lestari Jaya Tbk Senoni, East Kalimantan 110,000 110,000

Sumalindo Lestari Jaya Tbk Samarinda, East Kalimantan 95,000 95,000

P.T. IFI Jakarta 250,000

Thai Plywood, Saraburi Saraburi 75,000 75,000

Vanachai MDFP Line 1, Chon Buri 90,000 90,000

Vanachai MDFP Line 2, Chon Buri 110,000 110,000

Total Indonesia 1,835,000 2,101,000

Japan Daiken Miri sdn (2 plants) Sarawak 110,000 110,000

Hokushin, Lines I & III Kishiwada, Osaka 250,000 250,000

N&E Co. Komatsushima 120,000 120,000

Noda Plywood Shimizu, Shizuoka 170,000 170,000

Seihoku Veneer Group Ishinomaki 100,000 100,000

Total Japan 750,000 750,000

Korea, Rep Chungkoo, Seoul Seoul 60,000 60,000

Dong In Hansoi 1, Asan Kun 85,000 85,000

Dongwha Enterprise Co. Asan 165,000 165,000

Dongwha Enterprise Co. Dongwha I & II Inchon 255,000 255,000

Foresco Inchon 174,000 174,000

Hansoi Home Deco Iksan 250,000 250,000

Kari Chemical 1, Kunsan Lines 2 Kunsan 175,000 175,000

Kwangwon Lumber Inchon 270,000 270,000

Kwangwon Lumber (new line) Inchon 100,000 100,000

Kyung Nam Industrial Inchon 60,000 60,000

Sun Chang Corp Inchon 315,000 315,000

Taesung Wood Industry Corp Inchon 54,000 54,000

UNID Co. Ltd. THDF Gunsan 340,000 340,000

Total Rep. of Korea 2,303,000 2,303,000

Malaysia Daiken Sarawak (Daiken/Itochu) Bintulu, Sarawak 105,000 105,000

Dongwha Fibreboard Sdn (ex Golden Hope Fibreboard in 2003) Negeri, Seremban 250,000 250,000

Dongwha Fibreboard Sdn (ex-Merbok, Lines I & II) Kedah Darul Aman 260,000 260,000

Dongwha MDF (M) Sdn (ex-Guthrie MDF) Kulim, Kedah Darul Aman 140,000 140,000

Evergreen Fibreboard (Nilai) (ex Hume Fibreboad Sdn Lines 3 Nilai, Seremban 250,000 250,000

Evergreen Fibreboard Berhad Lines 3 Parit Raja, Batu Pahat, Johor 250,000 250,000

Evergreen MDF Fibreboard (JB) Masai, Johor 120,000 120,000

Merbok MDF Sdn (Merbok Hilir Group) Kedah Darul Aman 250,000 250,000

Robin Resources (M) Sdn Bhd (Robin Group China) Mentakab 180,000 180,000

Samling Fibreboard, Lines I & II (Daiken/Itochu) Miri, Sarawak 100,000 100,000

Segamat Panel Boards (Takeuchi) Lines 2 Segamat, Johor 72,000 72,000

Soon Hua Seng Group (Rubberwood hybrid MDF) Gemas, N. Sembilan 15,000 15,000

Total Malaysia 1,992,000 1,992,000

New Zealand Juken New Zealand (was Juken Nissho Kaitaia) Auckland 85,000 85,000

Carter Holt Harvey Eves Valley Nelson 120,000 120,000

Carter Holt Harvey Panels Sefton 220,000 220,000

Dongwha Patinna (ex Rayonier) Gore, South Island 140,000 140,000

32



Daiken New Zealand (Daiken/Itochu) (ex CHH) Rangiora, South Island 220,000 220,000

Nelson Pine Industries (Sumitomo Forestry Group) Nelson, Richmond, S.I. 350,000 350,000

Wenita Forest Milburn 120,000 120,000

Total New Zealand 1,255,000 1,255,000

Pakistan Al-Noor MDF Board Industries (Rubberwood) Moro, Nawabshah 42,000 42,000

Peshawar Particleboard Industries (MDF & PB) Peshawar 50,000 50,000

Garibsons (Pvt) Ltd. MDF/ HDF Karachi Punjab 100,000 100,000

ZRK Group MDF/HDF/PB Peshawar NWFP 150,000

Total Pakistan 192,000 342,000

Sri Lanka Merbok MDF Lanka (Pvt) Ltd. (2 lines) Horana 180,000 180,000

Total Sri Lanka 180,000 180,000

Thailand Advance Fiber Co Ltd. (Metro MDF) Tamaka 250,000 250,000

Agro Mats Co Ltd. Chachoung-sao 90,000 90,000

Bangsai Fiber Board Co. Ltd. (BFB Thailand Co) Prachin Buri 90,000 90,000

Khon Kaen Sugar (Doorskin Mill) Khon Kaen 25,000 25,000

Kijchai S. Klaeng MDF Co. (Rayong Particle Board Co. Ltd.) Klaeng, Rayong 330,000

Rayong MDF Co Ltd. Amphur Klaeng, Rayong 260,000

Metro MDF Co Ltd. (1 Line) Kanchanburi 200,000 200,000

Metro Fibre Co Ltd. (1 Line) Kanchanburi 250,000 250,000

Metro Fibre Co Ltd. (1 Line) Kanchanburi 350,000 350,000

Metro Fibre Co Ltd. (3 Lines) HDF Kanchanburi 360,000 400,000

Panel Plus MDF Co Ltd.; Mitr Phol Sugar Group MDF/HDF Hat Yai 330,000 330,000

Siam Fibreboard Company Ltd. (ex Evergreen Fibreboard ) 3 Lines Hat Yai 570,000 570,000

Thai Plywood Co. Ltd. Kaeng Khoi, Suraburi 84,000 84,000

Vanachai Panel Industries Co (Vanachai Group Public Co Ltd.) Lines 2 Chonburi 300,000 300,000

Vanachai Panel Industries Co (Vanachai Group Public Co Ltd.) Surat Thani 350,000 350 000

Vanachai Panel Industries Co (Vanachai Group Public Co Ltd.) Surat Thani 200,000 200,000

Vanachai Panel Industries Co (Vanachai Group Public Co Ltd.) Saraburi 50,000 50,000

Total Thailand 3,499,000 3,779,000

Taiwan Jia Ding Wood Co. Ltd. Kaohsiung 40,000 40,000

Total Taiwan 40,000 40,000

Vietnam Cosevco Construction Co/ Mien Trung Corp Dong Ha, Quang Tri 60,000 60,000

Geruco MDF Company Dong Ha, Quang Tri 60,000 60,000

Long Viet MDF Tỉnh DakNong 100,000 100,000

May Forestry Joint Stock Company Nghe An, Vinh 240,000

May Forestry Joint Stock Company Nghe An, Vinh 175,000

MDF Thien Son (Binh Phuoc), (VRG DongWha) Binh Phuoc 60,000 300,000

Mien Trung Corporation Cosevco 65,000 65,000

Panel Plus Hat Yai 330,000

Quang Tri MDF Geruco Wood Factory Quang Tri Province 80,000 80,000

Tay Bac/Yen Bai Joint stock Co. Ltd. Yen Bai province 100,000 100,000

Thanh Nam Construction and Trade Co.Ltd. Hanoi 80,000

Thien Nam Phuong Co, Ltd. MDF/HDF Hoa Binh 55,000 150,000

Timbee MDF (Kim Tin Group) Asean 200,000 300,000

Vietnam Rubber Group (linked to DongWha Minh Hung) Quang Tri Province 50,000 50,000

33

VRG DongWha MDF (JSC) & Vietnam Rubber Group MDF/HDF Minh Hung 60,000 360,000

Viforex (Ha Giang Industry and Forestry Export JSC) Vi Xuyen 100,000

Vinafor (Vietnam Forest Corp) ex Thai Nguyen Particle Board Co and MDF Gia Lai merged 2011 Gia Lai, Hoa Binh 115,000 115,000

Vino Eca Board Company Long An 260,000

Total Vietnam 1,005,000 2,925,000

TOTAL ASIA-PACIFIC EXCLUDING CHINA 15,448,000 18,064,000

FIBREBOARD ACHIEVABLE PRODUCTION CAPACITY: EUROPE


Austria M. Kaindl Holzindustrie (P&M Kaindl) Salzburg 400,000 400,000

MDF Hallein (Binder) closed 03-2014 Hallein 300,000

Total Austria 700,000 400,000

Belarus Borisovdrev OAO (Bellesbumprom Group ‘Belarus’) Borisov 65,000 65,000

Gomeldrev JCS (MDF/HDF) Belarus 170,000

Kronospan Holdings East Ltd. (P&M Kaindl) Smarhoỉ, Grodno 300,000

Kastamonu Entegre Group Kazanlak 360,000

Mostovdrev JSC (MDF/HDF) Belarus 200,000

Mozyrski DOK State Enterprise (insulation fibreboard) Mozyr 140,000

Vitebskdref JCS (MDF/HDF) Belarus 140,000

VMG Industries Ltd. Mogilev 160,000 160,000

Total Belarus 225,000 1,535,000

Belgium Spanolux (acquired by Sofinim) Vielsalm 270,000 270,000

Total Belgium 270,000 270,000

Czech Republic DDL Dỉevozpracující družstvo Lukavec 95,000 95,000

Total Czech Republic 95,000 95,000

Estonia Skano Group AS Pärnu 70,000

Püssi Fibreboard (ex MTK Holding) Püssi 70,000

Total Estonia 140,000

France Isoroy (Sonae Indústria, Portugal) Le Creusot--Montchanin 160,000 160,000

Isoroy (Sonae Indústria, Portugal) Ussel 190,000 190,000

Mediland (Finsa Spain) Morcenx 160,000 160,000

Unilin S.A.S. (Mohawk Industries) Bazeilles 600,000 600,000

Total France 1,110,000 1,110,000

Germany Egger (Fritz GmbH) Bevern 90,000 90,000

Egger (Fritz GmbH) Brilon 250,000 250,000

Egger (Fritz GmbH) Wismar 400,000 400,000

FBB Baruth (Classen Group -Sonae ) Baruth 570,000 570,000

Glunz (Sonae Indústria (l- JV with Tarkett) Eiweiler 220,000 220,000

Glunz (Sonae Indústria Closed 1 line Meppen 300,000 300,000

Hornitex (Sonae Indústria, Portugal) Beeskow 350,000 350,000

34



Homann Holzwerkstoffe (Homanit) MDF/HDF Losheim 200,000 200,000

Kronospan (P & M Kaindl) Steinheim-Sandebeck 150,000 150,000

Kronospan (P & M Kaindl) Lampertswalde 600,000 600,000

Kronotex GmbH & Co KG (E. Kaindl, Swiss Krono Group) Heiligengrabe 490,000 490,000

Pfleiderer GmbH (ex Kunz) Gschwend 250,000 250,000

Pfleiderer GmbH (ex Kunz) Ebersdorf 500,000 500,000

Pfleiderer (ex Classen Group) Baruth 450,000 450,000

Total Germany 4,820,000 4,820,000

Greece Alfa Wood Pindos (ex Pindos SA state-owned) Grevena 120,000 120,000

Total Greece 120,000 120,000

Hungary Kronospan-Mofa (P & M Kaindl) Mohacs 200,000 200,000

Total Hungary 200,000 200,000

Ireland, Rep. Medite Europe Ltd. (Coillte Panel Products Div) Redmonstown, Clonmel 480,000 480,000

Total Ireland, Rep. of 480,000 480,000

Italy Bipan (Gruppo Frati) Bicinicco 370,000 370,000

Fantoni SpA Osoppo 760,000 760,000

Novolegno (Fantoni SpA) Avellino 220,000 220,000

Nuova Rivart (Mauro Saviola) Radicofani 100,000 100,000

Total Italy 1,450,000 1,450,000

Luxembourg Kronospan (P & M Kaindl) Sanem 275,000 275,000

Total Luxembourg 275,000 275,000

Poland Homann Holzwerkstoffe GmbH (Homanit) Karlino 250,000 250,000

Homann Holzwerkstoffe GmbH (Homanit) Krosno, Oder

Kronowood (P & M Kaindl) Mielec 180,000 180,000

Polspan (P & M Kaindl) Szczecinek 760,000 760,000

Kronopol Sp Zoo (E. Kaindl Swiss Krono Group) Zary 218,000 218,000

Pfleiderer Ltd. Grajewo 250,000 250,000

Swedspan International s. r. o. (IKEA) UT-HDF Orla Bielsk Podlaski 310,000 310,000

Total Poland 1,968,000 1,968,000

Portugal Casca (Sonae Indústria, Portugal) Mangualde 360,000 360,000

Valbopan Nazare 44,000 44,000

Luso Finsa (Finsa, Spain) Nelas 140,000 140,000

Total Portugal 544,000 544,000

Romania Kronospan Sebes S.A. (P&M Kaindl) Sebes, Jud Alba 368,000 368,000

Prolemn S.C, SA (Kastamonu Entegre Group) Reghin, Jud. Mureỉ Mures 420,000 420,000

United Panel Group Zeshart, Komi 130,000 130,000

Vitebskdrev JSC Belarus 350,000 350,000

YUG Krasnodar 54,000 54,000

Total Romania 1,322,000 1,322,000

Russian Rep. Abinsk Zavod MDF OOO Abinsk 150,000 150,000

Altayles Kamenskiy LDK Altay 250,000

Apsheronsk ZAO PDK MDF/HDF Krasnodar 300,000 300,000

35

Art-Progress Kiev Korosten 250,000 250,000

Bobruisk Fiberboard Factory MDF HDF Belarus 100,000 100,000

Borisovdrev OAO Borisov 240,000 240,000

Dallesprom (RFP Group) Amur 300,000 300,000

Gomeldrev OJSC Gomel, Belorussia 180,000 180,000

Igorevskiy Woodworking Plant Smolensk 400,000

IKEA (ex Pfleiderer MDF OOO Novgorod 500,000 500,000

Inter-Drev Tver

Kastamonu Integrated Wood Industry SEZ Alabuga, Tatarstan 565,000

Kiew Fanernij Zavod Kiev 44,000 44,000

Kraslesinvest Krasnoyarsk

Kronospan (P & M Kaindl) Egorievsk 400,000 400,000

Lesplitinvest JSC Priozersk, Leningrad 100,000 100,000

MDF Mortka Mortka, Kondinski 100,000 100,000

Mostovdrev OAO Belarus 200,000 400,000

Novaja Vjatka Kirov 60,000 60,000

Novovyatskiy Ski ỉJSC Ski Industrial Center 75,000 75,000

Partner-Tomsk LPK Tomsk 260,000 260,000

Partner-Tomsk LPK Tomsk 275,000 275,000

Pechora MDF Ltd. Pechora, Republic of Komi 65,000

Plitspichprom (Souz) Balabanovo 54,000 54,000

Plitspichprom JSC Krasnoyarsk 80,000 80,000

Promstroibank, Spb Saint-Petersburg 100,000 100,000

Rimbunan Hijau (RH Group) MDF/THDF (Malaysian multi business) Khabarovsk Krai 180,000 180,000

Russky Laminat Ltd. Sergiev Posad 395,000 395,000

Saw Mill ỉJSC Tyndales 65,000 65,000

SchKDP OOO Scheksna, Wologda 108,000

Sharyaplit Kronostar (E. Kaindl) Scharija 430,000 430,000

Sheksninsky KDP Sheksna 50,000 50,000

SibDSM Irkutsk 250,000 250,000

TyndaLes Tynda 44,000 44,000

United Panel Group Himki 120,000 120,000

Zheshart Plywood Plant, JSC Komi 130,000 130,000

Total Russia 5,432,000 7,020,000

Slovenia Lesonit (Fantoni, Italy) Ilirska Bistrica 250,000 250,000

Total Slovenia 250,000 250,000

Spain Fibranor (Finsa) Rábade 302,000 302,000

Finsa (Finsa) Padrón 295,000 295,000

Orember (Finsa) Orense 205,000 205,000

Interpanel (Tablicia) Villabrazaro, Benavente 250,000 250,000

Intasa – Industrias del Tablero San Saturniño 195,000 195,000

Unopan (Interbon) (Kronospan, P&M Kaindl ex liquidation 2012) Burgos 250,000 250,000

Tafisa (Sonae Indústria, Portugal) Valladolid 140,000 140,000

Total Spain 1,637,000 1,637,000

Sweden Karlit AB Karlholmsbruk 105,000 105,000

Total Sweden 105,000 105,000

Switzerland Kronoswiss (E. Kaindl, Swiss Krono Group) MDF/HDF Menznau, Lucerne 270,000 270,000

Total Switzerland 270,000 270,000

36



Turkey AGT Wood Industry Antalya 500,000

Çamsan Poyraz Lines 3 Ordu 350,000 350,000

Çamsan Entegre Agac Lines 2 Hendek-Sakarya/Adapazari 780,000 780,000

Divapan Entegre Yigilca Yolu 120,000 120,000

Gentas Group Bolu 28,800 28,800

Kastamonu Entegre Group Gebze 370,000 370,000

Kastamonu Entegre Group Kastamonu 360,000 360,000

Kastamonu Integrated Forest Ind (Kastamonu Entegre Group) MDF/HDF Adana 420,000 420,000

Serdar Aỉaç Kaplama Sanayi A.ỉ. Inegöl 120,000 300,000

SFC Entegre Orman A S (Kronospan P&M Kaindl) Kastamonu 500,000 500,000

Starwood Orman Ürünleri San A.S Inegol Bursa 1,000,000 1,000,000

Teverpan Agac Sanayii A S (several lines) Çerkezköy 790,000 790,000

Tever MDF Levha Sanayi ve Ticaret AS (MDF) Çerkezköy 165,000 165,000

Tever MDF Levha Sanayi ve Ticaret AS (HDF) Çerkezköy 120,000 120,000

Turanlar A S THDF Vezirköprü 240,000 240,000

Vezirkopru Orman Urunleri urun-ve-kagit Samsun 250,000 250,000

Yildiz Entegre Tarsus Mersin 540,000

Yildiz Entegre (Kimya) Lines 3 Kocaeli 1,200,000 1,200,000

Yildiz Sunta MDF A S Izmit 450,000 450,000

Total Turkey 6,843,800 8,483,800

Ukraine Korosten MDF Koresten 250,000 250,000

Total Ukraine 250,000 250,000

UK Norbord Inc., Canada Cowie, Stirlingshire 330,000 330,000

Kronospan (P & M Kaindl) Chirk, Wales 540,000 540,000

Total UK 870,000 870,000

TOTAL EUROPE 29,656,800 33,614,800

TOTAL ASIA-PACIFIC 15,448,000 18,064,000

TOTAL N. AMERICA 6,945,000 7,793,000

TOTAL S. AMERICA 7,834,000 10,058,000

TOTAL MIDDLE EAST & AFRICA 1,933,000 1,933,000

TOTAL WORLDWIDE [EX CHINA] 61,816,800 71,462,800

TOTAL CHINA 53,812,000 53,882,000

TOTAL WORLD 115,628,800 125,344,800

37

Global PB Listing 2015

PARTICLEBOARD ACHIEVABLE PRODUCTION CAPACITY: NORTH AMERICA


Canada Flakeboard (Celulosa Arauco y Constitucion SA, Chile) St Stephen NB 200,000 200,000

Uniboard Canada Inc - Arauco (ex Kaycan Ltd. ex Pfleiderer ex Kunz) Sayabec 400,000 400,000

Uniboard Canada Inc - Arauco (ex Kaycan Ltd. ex Pfleiderer ex Kunz) Sayabec 380,000 380,000

Uniboard Canada Inc - Arauco (ex Kaycan Ltd. ex Pfleiderer ex Kunz) Val d’Or 450,000 450,000

Northern Engineered Wood Products Inc (NEWPRO) Wanham 80,000 80,000

Columbia Forest Products Hearst 160,000 160,000

DeFehr Furniture Logic Div. Ex Palliser Furniture (restructure 2013) Winnipeg MA 60,000 60,000

Panolam Industries International Inc., Huntsville ON 230,000 230,000

Sonae Tafisa Lac-Mégantic, Quebec 950,000 950,000

Total Canada 2,910,000 2,910,000

Mexico Bajaplay SA Group Tijuana 65,000 65,000

Duraplay Inc Parral Chihuahua 138,000 138,000

Industrias Emman SA Ocotlan 80,000 80,000

Masisa Durango Durango 155,000 155,000

Rexcel SA (Masisa/Grupo Nueva ex Kuo Group mid 2013) Zitacuaro 210,000 210,000

Rexcel S.A. de C.V Maderas y Sintéticos de México S.A. de C.V. (ex Grupo Kuo) Chihuahua 250,000 250,000

Maderas Conglomeradas (Macosa) San Juan 100,000 100,000

Total Mexico 998,000 998,000

USA Arcadia Board Co. New Iberia CA 100,000 100,000

Aconcagua ATC (ex Arauco Chile) Franklin VA 230,000 230,000

Aconcagua ATC (ex Arauco Chile) Bennetsville SC 470,000 470,000

Aconcagua ATC (ex Arauco Chile) Moncure NC 250,000 250,000

Arauco Panels USA; ex Uniboard USA LLC, subs Pfleiderer in 2012; ex ATC Panels Moncure, NC 280,000 280,000

Flakeboard America Ltd. (Arauco Chile bgt 2012; ex-Weyerhaeuser) Albany OR 427,000 427,000

Ampine Particleboard (SierraPine) (Jan 2014 bgt by Flakeboard) Martell CA 375,000 375,000

AgraFibre Industries Inc Wanham 160,000 160,000

Agristrand Mankato, LLC. Minnesota 145,000 145,000

Ankmar Door LLC (ex Cladwood) Sweet Home OR 30,000 30,000

Boise Cascade LLC La Grande OR 150,000 150,000

Boise Cascade LLC La Grande OR 230,000 230,000

Collins Products LLC Klamath Falls OR 235,000 235,000

Environ Biocomposites LLC Mankato MU 90,000 90,000

Florida Plywoods Inc Greenville FLA 30,000 30,000

Florida Plywoods Inc Greenville FLA 60,000 60,000

38



Hambro Forest Products (Liquidated 2012) Lenoir NC 60,000 60,000

Hambro Forest Products (Liquidated 2012) Crescent City CA 88,000 88,000

Hambro Forest Products (Liquidated 2012) Arcata CA 75,000 75,000

Isobord Enterprises Inc Elie, Manitoba 150,000 150,000

Marshfield Door Systems (Masonite acq 2011, ex Wind Point pr ivate equity, ex Weyerhaeuser 2000) Marshfield WI 150,000 150,000

Masonite Prime Board Inc (ex Prime Board Inc, acq 2005) Wahpeton, North Dakota 100,000 100,000

Merillat Industries LLC (sub of Masco Corp bgt in 1985) Rapid City SD 170,000 170,000

Potlatch Corp Post Falls ID 130,000 130,000

Prime Board Inc 54,000 54,000

Roseburg Forest Products Dillard OR 750,000 750,000

Roseburg Forest Products Missoula MA 340,000 340,000

Roseburg Forest Products Russelville SC 330,000 330,000

Roseburg Forest Products Taylorsville MS 330,000 330,000

Roseburg Forest Products Vienna GA 265,000 265,000

Roseburg Forest Products (ex Flakeboard) (Idled in 2011) Simsboro LA 490,000 490,000

Roseburg Forest Products (ex Georgia Pacific) Louisville MS 280,000 280,000

Roseburg Forest Products (ex Sierra Pine (ex Weyerhauser) bgt 2011 Adel GA 255,000 255,000

Temple-Inland (Georgia-Pacific was bought 2013) Monroeville AL 250,000 250,000

Temple-Inland (Georgia-Pacific was bought 2013) Thomson GA 250,000 250,000

Temple-Inland (Georgia-Pacific was bought 2013) Diboll TX 250,000 250,000

Temple-Inland (Georgia-Pacific was bought 2013) Hope AR 380,000 380,000

Timber Products Company Medford OR 160,000 160,000

Total USA 7,856,000 7,856,000

TOTAL NORTH AMERICA 11,764,000 11,764,000

PARTICLEBOARD ACHIEVABLE PRODUCTION CAPACITY: SOUTH AMERICA


Argentina Puerto Piray 300,000 300,000

Cuyoplacas SA Las Heras Mendoza 100,000 100,000

Cuyoplacas SA (closed 2011) General Lavalle 360,000 360,000

Cellulosa Arauco SA (Faplac) Zarate 270,000 270,000



Sadepan Latinoamericana (Mauro Saviola Group) Conception del Uraguay 120,000 120,000

Tableros del Parana SA Fighiera 30,000 30,000

Madindesa Campana Campana 30,000 30,000

Total Argentina 1,015,000 1,015,000

Brazil Placas do Parana (Celulosa Arauco Constitucion SA) Curitiba 250,000 250,000

Placas do Parana ex Tafisa Brasil SA sub Sonae Indústria 2009 Pièn, Paraná 270,000 270,000

Berneck Aglomerados Araucária, Paraná 600,000 600,000

Bonet Madeiras e Papeis LDPB Santa Catarina 30,000 30,000

Duratex SA (ex Satipel Industrial ) Itapetininga, Sao Paulo 500,000 500,000

Duratex SA (ex Satipel Industrial ) Botucatu, Sao Paulo 440,000 440,000

Duratex SA (ex Satipel Industrial ) Taquari 200,000 200,000

Eucatex MDF Botucatu, Sao Paulo 440,000 440,000

39

Fibraplac Paineis Maderia SA (Isdralit Group) Glorinha, RS 500,000 500,000

Masisa do Brasil (Grupo Neuva) Montenegro 650,000 650,000



Repinho Reflorestadora Madeiras e Compensados Ltd. Guarapuava 100,000 100,000

Satipel Industriel (Formitex) Uberaba 700,000 700,000

Satipel Industriel (Formitex) Taquari 200,000 200,000

Total Brazil 5,530,000 5,530,000

Colombia Pizano SA Barranquilla 18,000 18,000

Pizano SA Barranquilla 65,000 65,000

Tableros Y Maderas de Caldas SA (TABLEMAC) Duratex partner Manizales 38,000 38,000

Tableros Y Maderas de Caldas SA (TABLEMA C) Duratex partner Yarumal 110,000 110,000

Tableros Y Maderas de Caldas SA (TABLEMAC) Duratex partner Barbosa, Antioquia 300,000 300,000

Celdas Y Tablero de Colombia SAS Lines 2 Bogota 110,000 110,000

Total Colombia 641,000 641,000

Chile Arauco (Celulosa) MDP Teno 300,000 300,000

Masisa (Grupo Neuva) Cabrero 280,000 280,000

Masisa (Grupo Neuva) Coronel, Concepción 92,000 92,000

Masisa (Grupo Neuva) Coronel, Concepción 60,000 60,000

Masisa (Grupo Neuva) Chiguayante 89,000 89,000

Masisa (Grupo Neuva) Valdivia 90,000 90,000

Total Chile 911,000 911,000

Cuba Construction Industrial (Lines 4) Havana 260,000 260,000

Total Cuba 260,000 260,000

Costa Rica Durpanel SA San Jose 40,000 40,000

Durpanel SA San Jose 30,000 30,000

Total Costa Rica 70,000 70,000

Ecuador Aglomerados Cotopaxi SA (ACOSA) (Gem Corp) Lasso, Quito 27,000 27,000

Novopan del Ecuador S.A. (Pelikano Group) Guajalo, Quito 300,000 300,000

Total Ecuador 327,000 327,000

TOTAL SOUTH AMERICA 8,754,000 8,754,000

PARTICLEBOARD ACHIEVABLE PRODUCTION CAPACITY:

South Africa & Middle East


Rep Of S. Africa Bison PG (KAP Industrial Holdings Ltd. and Steinhoff International Holdings Ltd.) Piet Retief 120,000 120,000

Bison PG (KAP Industrial Holdings Ltd. and Steinhoff International Holdings Ltd.) Stellenbosch 80,000 80,000

Bison PG (KAP Industrial Holdings Ltd. and Steinhoff International Holdings Ltd.) Ugie North Eastern Cape 360,000 360,000

Sonae Novobord, (Sonae Industria) (ex Sappi) White River 280,000 280,000

Sonae Novobord, (Sonae Industria) (ex Sappi) Panbult 150,000 150,000

Total Rep of S. Africa 990,000 990,000

40



Ethiopia Maichew Particleboard 95,000 95,000

Total Ethiopia 95,000 95,000

Tunisia Panoboise SA Hammam Sousse 35,000 35,000

Panofort Soc Tabarka 20,000 20,000

Stibois MDF Grombalia 32,000 32,000

Total Tunisia 87,000 87,000

Iran Shahid Dr. Bahonar Board Gorgan 43,000 43,000

Bistodoe Bahman Behshahr 48,000 48,000

Choubin Nemad Co. Garmsar 155,000 155,000

Neopan Fumanat Fumanat 30,000 30,000

Neopan Khalkhal Khalkhal 40,000 40,000

Neopan Karoun Lines 2 Karoun 115,000 115,000

Neopan MDF, Pars Lines 2 Nashtaroud 160,000 160,000

Neopan Momtaz Golestan Compact Panel Tehran 100,000 100,000

Pouya Choub (TFS) Garmsar S Tehran 155,000 155,000

Pooya Industrial Group Wood Chali, Shergah 360,000 360,000

Rafsanjan Industrial Co.mplex Islamin Co.operative Co. (ASR Neopan) Farvardin 25,000 25,000

Sanate Choob Shomal Gonbad 78,000 78,000

Shamushak Chipboard Producer Co. Gorgan 100,000 100,000

Takhte Feshorde Shamal Sari 130,000 130,000

TFMG Co. 155,000 155,000

Karum Particleboard Limbah Kayu 40,000 40,000

Total Iran 1,734,000 1,734,000

TOTAL South Africa & MIDDLE EAST 2,906,000 2,906,000

PARTICLEBOARD ACHIEVABLE PRODUCTION CAPACITY: ASIA PACIFIC EXCLUDING CHINA


Australia Carter Holt Harvey Ltd. (3 lines) Mt Gambier 230,000 230,000

Carter Holt Harvey Ltd. Oberon, NSW 120,000 120,000

Carter Holt Harvey Ltd. Tumut 100,000 100,000

D&R Henderson Pty Ltd. Benalla 34,000 34,000



Fletcher Wood Panels Ltd. (ex Amatek) Dardanup 160,000 160,000

Fletcher WoodPanels Ltd. (ex Amatek) Kumeu 90,000 90,000

Laminex Group (Fletcher Building Ltd.) Gympie, Qld 110,000 110,000

Tasmanian Wood Wesley Vale 40,000 40,000

Wesfi Ltd. Dardanup 130,000 130,000

Wesfi Ltd. Dardanup 160,000 160,000

Total Australia 1,298,000 1,298,000

Bangladesh Akij Particle & Hard Board Mills Ltd. Torraghat, Manikgonj 25,000 25,000

Star Particle Board Mills Ltd. (Partex Star Group) Lines 2 Narayangonj, Bangladesh 280,000 280,000

Woodland Plywood & Particle Board Mills Ltd. Khulna, Bangladesh 30,000 30,000

Total Bangladesh 335,000 335,000

41

India Associate Decor ex Star Panel (JV Associate Group/Kings Wood ) Malur Karnataka 300,000 300,000

Baji Eco-tec Products Ltd. 100,000

Bajai Hindustan Utter Pradesh 60,000 60,000

Best Boards Ltd. Delhi 30,000 30,000

Daulet SSK Halkarni 60,000 60,000

Ecoboard Industries- EIL (former Western Bio Systems Ltd.) Solapur Maharashtra 66,000 66,000

Indian Plywood Manufacturing Co. Bombay 22,000 22,000

Metro Decoratives Pvt Haryana 46000 46000

Mysore Chip Ltd. Mysore 30,000 30,000

Nagpur Chipboards Maharashtra 35000 35000

Neoluxe India Ltd. Mumbai 100,000 100,000

Novopan India Ltd. Shad naga, Hyderabad 54,000 54,000

Perfect Board Sheikupura 90,000 90,000

Patel Kenwood Pvt. Ltd. Ankleshwar, Gujarat 50,000 50,000

Vipul Panel Board Industries Balaghat, Madhya Pradesh 35,000 35,000

Total India 978,000 1,078,000

Indonesia AGP Lampung 30,000 30,000

Barito Pacific (former P T Barito Pacific Timber Tbk) Southeast Sulawesi 54,000 54,000

Batasan PT West Kalimantan 60,000 60,000

Benuah Indah Group Katapang 210,000 210,000

Bumi Raya Itama West Kailmantan 195,000 195,000

Canang Indah PT Medan, North Sumatra 66,000 66,000

Dayak Besar Pontianak W Kalimantan 450,000 450,000

Hutrindo Jaya Fibreboard Sumatra 100,000 100,000

Industri Badja Garuda Medan, N Sumatra 60,000 60,000

Intan Andalas Wood Industry PT Tebing Tinggi Kisaran 36,000 36,000

Khatulistiwa Indah Wood Industri PT West Kalimantan 180,000 180,000

Khatulistiwa Indah Wood Industri PT West Kalimantan 132,000 132,000

Kutai Timber (KTI) (JV Sumitoto Forestry & PT Kaltimex Jaya, Ind) Probolinggo, East Jawa 150,000 150,000

Rimba Particle Indonesia ‘RPI’ (Sumitomo Forestry & PT Kaltimex Jaya, Ind) Semarang Jarva 150,000 150,000

Limbah Kayu Utama Lindner 200,000 200,000

Limbah Raya Limbah 90,000 90,000

Mangole Timber Products PT (PT Tunggal Agathis Indah Wood Industries) S Kalamantan 60,000 60,000

Nusa Prima PratamaIndustry Jawa Timur 30,000 30,000

Parindo Permai Ltd. Lampung 53,000 53,000

Parindo Permai Ltd. Lampung 100,000 100,000

Perawang Lumber Ltd. Sumatra 90,000 90,000

Total Indonesia 2,496,000 2,496,000

Japan Daishowa Iwanuma 180,000 180,000

Dantani Corporation Wakamatsu 180,000 180,000

Eidai Co.Ltd. Fukui 100,000 100,000

Eidai Co.Ltd. Yamaguchi 100,000 100,000

Iwakura Corporation Tomakomai 90,000 90,000

Japan Novopan Industrial Sakai 190,000 190,000

Japan Novopan Industrial Tsukuba 170,000 170,000

Mai Board Gunma 60,000 60,000

Miyako Board Kogyo K.K.. Kogyo K.K 50,000 50,000

Okura Industrial Co.Ltd. Kagawa 125,000 125,000

42



Okura Industrial Co.Ltd. Kagawa 340,000 340,000

Onahama Plywood Fukushima 100,000 100,000

Seihoku Veneer Group Ishinomaki 100,000 100,000

Seihoku Veneer Group Akita 60,000 60,000

Seihoku Veneer Group Tokyo 130,000 130,000

Seihoku Veneer Group Miyako 60,000 60,000

Shin Akimoku Kogyo K.K Akita 70,000 70,000

Tohbec Co.Ltd. Osaka 60,000 60,000

Tohoku Homoboard Ltd. Yamagata 75,000 75,000

Tokyo Board Ind Co.Ltd. Shinkiba 112,000 112,000

Total Japan 2,352,000 2,352,000

Korea, Rep Dongwha Enterprise Co. Inchon 430,000 430,000

Kwangwon Lumber Co.Ltd. Inchon 100,000 100,000

Kwangwon Lumber Co.Ltd. Inchon 100,000 100,000

Sung Chang Corp Ulsan 280,000 280,000

Taesung Wood Industry Corp Inchon 275,000 275,000

Total Korea Rep 1,185,000 1,185,000

Malaysia Allgreen Timber Products Sdn Bhd (ex Evergreen Decor) Segamat, Johor 120,000 120,000

CGC Wood Ind Merlimau 110,000 110,000

HeveaBoard Bhd Gemas 120,000 120,000

HeveaBoard Bhd Gemas 410,000 410,000

ISOTOP Corp Sdn (ex Muar Hardboards Sdn) Muar, Johor 40,000 40,000

Jayakuik Sdn. Bhd Sabah 76,000 76,000

Merbok MDF Sdn (Merbok Hilir Group) Lines 2 Sg. Petani 250,000 250,000

Merbok MDF Sdn (Merbok Hilir Group) Lines 2 Takeuchi 100,000 100,000

Mieco Chipboard Bhd Gebeng 255000 255000

Mieco Chipboard Bhd Semambu 85,000 85,000

Mieco Chipboard Bhd (Bandar Raya Developments Kechau Tui Pahang 600,000 600,000

Millplex Particleboard (& San Mic Chiyoda Japan) Bukit Selambu, Kedah 110,000 110,000

NLS Sdn Bhd Peninsular 40,000 40,000

Pahanco Manufacturing Sdn (Panhanco Corp Berhad) Lines 3 Kuantan 120,000 120,000

Petani Particleboard Sdn Pahang 50,000 50,000

Rimbunan Hijau (PNG) Group Sibu, Sarawak 120,000 120,000

Segamat Panel Boards Sdn Bhd Segamat 200,000 200,000

Sinora Particleboard Sdn (Samling) Sandakan 60,000 60,000

Subur Tiasa Particleboard Sdn Bhd Sibu 120,000 120,000

Tian Siang Sitiawan 100,000 100,000

Total Malaysia 3,086,000 3,086,000

New Zealand Carter Holt Harvey Kopu 30,000 30,000

Fletcher Wood Panels Kemeu 90,000 90,000

Fletcher Wood Panels Taupo 50,000 50,000

Juken New Zealand, Japan (former Juken Nissho Gisborne) Masterton 85,000 85,000

Juken New Zealand, Japan (former Juken Nissho Gisborne) Gisborne 85,000 85,000

Total New Zealand 340,000 340,000

Pakistan Compact Particle Board Pvt Ltd. Lahore 50,000 50,000

Crescent Boards Peshawar 45,000 45,000

43

Garibsons Pvt Ltd. Karachi, Punjab 40,000 40,000

Gohar Chipboard Rawalpindi 30,000 30,000

Islamabad Particleboard Rawalpindi 30,000 30,000

Khyber Wood Prod Co. Rawalpindi 80,000 80,000

National Paticleboard Karachi 30,000 30,000

Pakistan Chipboards Pvt Ltd. Jhelum, Punjab 80,000 80,000

Pakistan Superwood Industries Pvt Ltd. Karachi 33,000 33,000

Pakitex Board Pvt Ltd. Lines 5 Karachi, Sindh 130,000 130,000

Perfect Board Pvt Ltd. Sheikupura 100,000 100,000

Peshawar Particleboard Industries Pvt Ltd. Peshawar 50,000 50,000

Ravi Chipboard Pvt Ltd. Peshawar 40,000 40,000

Sadaat Particle Board Pvt Kharalanwala 30,000 30,000

Sadaat Particle Board Pvt Lahore 30,000 30,000

Sind Particleboard Mills Pvt Ltd. (Amin Bawany Group) Distt Jamshoro 60,000 60,000

Sunlight Wood Products (3 lines) Karachi 140,000 140,000

Wood Board Ind former Bombay Plywood Industries Rawalpindi 50,000 50,000

ZRK Group Peshawar NWFP 150,000 150,000

Total Pakistan 1,198,000 1,198,000

Sri Lanka Oktjabrski Kombinat Pvt Ltd. Samarkand 66,000 66,000

Total Sri Lanka 66,000 66,000

Swaziland NHR Investments 55,000 55,000

Total Swaziland 55,000 55,000

Thailand Asia Panel Co.Ltd. (KOK Huad Group) Petchburi Province 53,000 53,000

Asia Panel Co.Ltd. (KOK Huad Group) Petchburi Province 60,000 60,000

Green River Panels (Thailand) Co.Ltd. Petchbury 200,000 200,000

Green River Panels (Thailand) Co.Ltd. Petchbury 360,000 360,000

Kijchai S. MDF Co.Ltd. Klaeng 100,000 100,000

Metro Ply Co.Ltd. Sainoi, Nonthaburi 380,000 380,000

Metro Ply Co.Ltd. Bangkok 420,000 420,000

Metro Particle Co.Ltd. Lines 2 Sai Noi, Nonthaburi 900,000 900,000

Molar Wood Products Co.Ltd. Line 1 Samut Sakon 90,000 90,000

Molar Wood Products Co.Ltd. Line 2 Petchburi 250,000 250,000

Panel Plus Co Ltd. Mitr Phol Sugar Group (ex STA) Hat Yai 140,000 140,000

Panel Plus Co Ltd. Mitr Phol Sugar Group (ex STA) Songkla 300,000 300,000

Phang Nga Parawood Ind Phuket 200,000 200,000

Phang Nga Parawood Ind Phuket 75,000 75,000

Plywood Laminate Co Ltd. Bangkok 50,000 50,000

Plywood Laminate Co Ltd. Bangkok 90,000 90,000

Rayong Panel Co Ltd. Amphur Klaeng, Rayong 324,000 324,000

Sahachai Particleboard Co. Ltd. Nonthaburi 150,000 150,000

Sahachai Particleboard Co. Ltd. Nonthaburi 360,000 360,000

Siam Particle Products Surat Thani 170,000 170,000

Siam Riso Wood Products Surat Thani 120,000 120,000

Sumitomo Forestry Co Ltd. Phu An Thanh 260,000 260,000

44



Thai Chipboard Co Ltd. Samut Sakhon 50,000 50,000

Vanachai Panel Industries Co (Vanachai Group Public Co Ltd.) Surat T hani 450,000 450,000

Vanachai Panel Industries Co (Vanachai Group Public Co Ltd.) Surat Thani 350,000 350,000

Particle Planner Co (Vanachai Group Public Co Ltd.) Chon Buri 180,000 180,000

Vanachai Panel Industries Co (Vanachai Group Public Co Ltd.) Sara Buri 235000 235000

Victory Plywood Industrial Choolai 60,000 60,000

Wang Kanai Group Lop Buri 102,000 102,000

Total Thailand 6,479,000 6,479,000

Vietnam Vina Eco Board Company Ltd. ‘VECO’ (Sumitomo Forestry Group) Phu An Thanh 250,000 250,000

Soosung Co.Ltd. Gyeonggi-do 70,000 70,000

Truong Thanh Furniture Corp Thanh 30,000 30,000

Total Vietnam 350,000 350,000

TOTAL ASIA-PACIFIC excluding China 20,218,000 20,318,000

PARTICLEBOARD ACHIEVABLE PRODUCTION CAPACITY: EUROPE


Austria Egger (Fritz GmbH) St Pölten 600,000 600,000

Egger (Fritz GmbH) St Johann Tirol 420,000 420,000

Egger (Fritz GmbH) Worgl 140,000 140,000

Kronospan (P&M Kaindl) (ex Funder Max) Neudörfl 120,000 120,000



M. Kaindl Holzindustrie (P&M Kaindl) Wals 450,000 450,000

Novopan Österr. Holzindustrie GmbH Leoben 200,000 200,000

Total Austria 2,370,000 2,370,000

Belgium Linopan Wielsbeke 250,000 250,000

Spano Group Oostrozebeke 210,000 210,000



Unilin S.A.S. (Mohawk Industries) Wielsbeke/Ooigem 600,000 600,000

Unilin S.A.S. (Mohawk Industries) Wielsbeke/Ooigem 300,000 300,000

Unilin S.A.S. (Mohawk Industries) (closed Sept 2013) Wielsbeke/Ooigem 200,000

Total Belgium 2,050,000 1,850,000

Belarus VMG Industries Ltd. (Vakarỉ Medienos Grupỉ) Mogilev 160,000 160,000

Rechicadrev OJSC Rechica 200,000

Kronospan Holdings East Ltd. (P&M Kaindl) Smarhoỉ 600,000

Total Belarus 160,000 960,000

Bulgaria Kastomonu Entegre Group (Hayat Holding Binasi Group) Gabrovnitska 190,000 190,000

Total Bulgaria 190,000 190,000

Croatia Kronospan (P&M Kaindl) (ex Iverica) Bjelovar 110,000 110,000

Total Croatia 110,000 110,000

45

Czech Republic Dỉevozpracující družstvo - DDL Lukavec 154,000 154,000

Kronospan CR (P&M Kaindl) Jihlava 600,000 600,000

Grena AS Veseli nad Luznia 100,000 100,000

Total Czech Republic 854,000 854,000

Denmark Novopan Traeindustri AS Pindstrup 350,000 350,000

Total Denmark 350,000 350,000

Estonia AS Repo Vabrikud (Sorbes Group) Pusi 230,000 230,000

Parnu Plaaditehas AS Parnu 55,000 55,000

Total Estonia 285,000 285,000

Finland Koskisen Oy Jarvela 200,000 200,000

Puhos Board Puhos 350,000 350,000

Total Finland 550,000 550,000

France Armor Panneaux La Chapelle Caro 95,000 95,000

Belipa SA Ecommoy 115,000 115,000

Compagnie Francaise du Panneau (CFP) Saint Loup sur Sermouse 400,000 400,000

Depalor SAS (Krono-Gruppe Schweiz ) fire closed plant 07-2013 Phalsbourg 350,000

De Sutter Freres Bacqueville en Caux 50,000 50,000

Egger Panneaux et Décors (Fritz GmbH) Rambervillers 600,000 600,000

Egger Panneaux et Décors (Fritz GmbH) Rion des Landes 500,000 500,000

Fontex Panneaux Lezoux 100,000 100,000

Kronospan (ex Homatherm GmbH (ex Isoroy SAS/Sonae Industria) Auxerre 220,000 220,000

Interbois SA Chantonnay 250,000 250,000

Kronofrance SAS (Swiss Krono Group) Sully-sur-Loire 100,000 100,000



Linex Panneaux Yvetot 560,000 560,000

Seripanneaux St Vincent de Tyrosse 66,000 66,000

Sonae Indústria (Portugal) Linxe 450,000 450,000

Swedspan Holding BV/IKEA Industry ex Isoroy, Sonae Indústria) Lure 450,000 450,000

Isoroy (Sonae Indústria (Portugal) Auxerre 160,000 160,000

Total France 4,926,000 4,576,000

Germany Egger Holtzstoffe (Fritz GmbH) Brilon 350,000 350,000

Kronospan GmbH (P&M Kaindl) Bischweier 800,000 800,000

Kronospan GmbH (P&M Kaindl) Sandebeck 460,000 460,000

Nolte Group Gernersheim 450,000 450,000

Pfleiderer GmbH (ex Kunz) Morbach 90,000 90,000

Pfleiderer GmbH Rheda 350,000 350,000

Pfleiderer GmbH Gutersloh 520,000 520,000

Pfleiderer GmbH Neumarkt 300,000 300,000

Pfleiderer GmbH Leutkirch 350,000 350,000

Rauch Spanplattenwerk GmbH Markt Bibart 500,000 500,000

Sauerlander Spanplatten GmbH Arnsberg 120,000 120,000

Sauerlander Spanplatten GmbH Gotha 180,000 180,000

Sonae (ex Glunz) Nettgau 550,000 550,000

Sonae (ex Glunz) Kaisersesch 335,000 335,000

Sonae (ex Hornitex) Beeskow 260,000 260,000

46



Sonae (ex Hornitex) (ceased output 09 2013) Horn-Bad 340,000

Sonae (ex Hornitex) Duisberg 530,000 530,000

Wilhelm Mende Osterode 250,000 250,000

Wilhelmi Werke AG Lahnau 50,000 50,000

Total Germany 6,785,000 6,105,000

Greece Akritas SA Alexandroupolis 270,000 270,000

Shelman (Owned by Alfa Wood SA) line 1 Komotini 360,000 360,000

Shelman Lines 4 Chalkis 220,000 220,000

Total Greece 850,000 850,000

Hungary Falco Zrt (Kronospan P&M Kaindl) Szombathely 450,000 450,000

Total Hungary 450,000 450,000

Italy Frati Luigi SpA Lines 2 Pomponesco, Mantua 800,000 800,000

Fantoni SpA Lines 5 Osoppo 420,000 420,000

Grupo Trombini (Bankrupt July 2013 ceased trading) Pomposa 432,000

IBL S.p.A Casale Monferrato 40,000 40,000

Invernizzi SpA Gussola 90,000 90,000

Mauro Saviola Srl (Saviola Holding) Lombardia Mantua 600,000 600,000

Montanari SpA Villarotta 70,000 70,000

Saib SpA Fossadello 530,000 530,000

Sama Srl Sustinente 450,000 450,000

Sia Bolderỉja Ltd. Viadana 250,000 250,000

Sipav di Gioda & C. Srl Vinovo 200,000 200,000

Xilopan SpA Cigognola, Pavia 180,000 180,000

Total Italy 4,062,000 3,630,000

Latvia Sia Bolderaja Ltd. (Kronospan P&M Kaindl) ex Baltijos Baldu Riga 320,000 320,000

Total Lativa 320,000 320,000

Lithuania Klaipedos Mediena AB (Vakarỉ Medienos Grupỉ ‘VMG’) Klaipeda 130,000 130,000

Giriu Bizonas UAB (IKEA bought from VMG 2009) Kazlu Roda 467,000 467,000

Total Lithuana 597,000 597,000

Norway Arbor-Hattfjelldal A/S Hattfjelldal 60,000 60,000

Forestia (Byggma ASA) Braskereidfoss 300,000 300,000

Forestia (Byggma ASA) Kvam 50,000 50,000

Troms Treforedling A/S Sorreisa 50,000 50,000

Total Norway 460,000 460,000

Poland Kronopol Sp ZOO (Swiss Krono Group) Zary 100,000 100,000

Kronopol Sp ZOO (Swiss Krono Group) Mielec 620,000 620,000

Lenwitt Fornir Sp ZOO Witaszyce 100,000 100,000

Polspan Sp ZOO (Kronospan P&M Kaindl) Szczecinek 500,000 500,000

ZPW Grajewo S.A. Czarnkow 230,000 230,000

Pfleiderer GmbH Grajewo 600,000 600,000

Pfleiderer Prospan GmbH Wieruszov 650,000 650,000

Total Poland 2,800,000 2,800,000

Portugal Casca (Sonae Indústria, Portugal) Oliveira de Hospital 410,000 410,000

47

Finsa (Spain) Nelas 200,000 200,000

Finsa (Spain) Perafita-Matosinhos 105,000 105,000

Indústrias Jomar - Madeiras e Derivados, S.A. (Finsa Spain) Matosinhos 400,000 400,000

Total Portugal 1,115,000 1,115,000

Romania S C Kastamonu Romania SA (Hayat Holding Binasi Group) Reghin 560,000 560,000

Kronospan Sebes SA (P&M Kaindle) Sebes, Jud Alba 800,000 800,000

SC Egger România SRL (Fritz GmbH) Radauti 600,000 600,000

Total Romania 1,960,000 1,960,000

Russia Altai-forest LLC Talmenskiy, Altai 230,000 230,000

Altayles (Rubtsovskiy LDK) Altai 250,000

Arkaim LLC JV Khabarovsk 140,000 140,000

Arkaim LLC JV Vanino 150,000 150,000

AVIC, China Tomsk 200,000

Cherepovetsky FMK ZAO Cherepovets 140,000 140,000

ChFMK ZAO (Cherepovets Plywood & Furniture Mill Ltd.) Cherepovets 208,000 208,000

DOK-PLIT OOO Moskva 79,000 79,000

DSP DOK OAK Krasny Oktyabr 99,000 99,000

Dyatkovo Woodworking DOZ Bryansk 124,000 124,000

Egger Drevprodukt Gagarin (Fritz GmbH) Gargarin, Smolensky 520,000 520,000

Egger Drevprodukt OOO (Fritz GmbH) Shuya, Ivanovo 250,000 250,000

Elektrogorskmekel Elektrogorsk 260,000 260,000

Experimantal Particleboard Mill JSC Tyumen 380,000 380,000

Experimental Particleboard Plant Sergiev Posad 129,000 129,000

Fanplit OAO (SVEZA Holding) Kostroma 100,000 100,000

Furniture Plant Shatura ỉJSC Shatura 175,000 175,000

Gagarinsky fanerny zavod (Syktyvkarsky) Smolensk 500,000 500,000

IKEA (ex Pfleiderer) Novgorod 500,000 500,000

Interwood Invest AG Irkutsk 180,000

Intrast OOO Serova Kostroma 114,000 114,000

Karelia DSP JSC Karelia 127,000 127,000

Katyusha OOO Bryansk 240,000 240,000

Katyusha OOO Bryansk 140,000 140,000

Krasnoyarsk Wood Processing Plant Krasnoyarsk 72,000 72,000

Krasnyi Oktjabr plc Tyumen 100,000 100,000

Kronolvilv OOO Osmoloda 400,000 400,000

Kronospan Bashkortostan LLC (Kronospan Holdings East Ltd. Cyprus.) 500k plant planned Egoryevsk, Moscow

Kronotec-Kronospan (P&M Kaindl) Egorievsk, Moscow 750,000 750,000

Kronostar OOO (Swiss Krono Group) Scharija, Kostroma 540,000 540,000

Minusinsky Les LLC Krasnoyarsk 275,000 275,000

Monzenskiy DOK OOO Vohtoga 127,000 127,000

Moskovskiy Eksperimental Niy Zavod DSPID (OAO) Novopodrezkovo 226,000 226,000

Pfleiderer GmbH Novgorod 500,000 500,000

Plitprom LLC JSC Kostroma, 350,000 350,000

Plitspichprom ZAO (SOUZ Group) Balabanovo, Kaluga 200,000 200,000

Public Enterprise Volgogradmebel Ugra Plit 82,000 82,000

Red October OAO DOK Tyumen 100,000 100,000

Rosplit LLC FC Nizhny Novgorod 86,000 86,000

SchKDP OOO Scheksna, Vologda 110,000 110,000

Sheksninsky Wood Panel Plant Sheksninsky 192000 192000

48



Sveza-Less OOO (600K plant 2015-2016 start) Moskva

Sveza-Less OOO (ex ZAO Fankom LLC) Sverdlovsk 300,000 300,000

Perm Plywood Mill (SVEZA) Perm 238,000 238,000

Syktyvkar Plywood Mill LLC Syktyvkar 217,000 217,000

Tomlesdrev OOO Tomsk 150,000 150,000

Tomlesdrev OOO Tomsk 150,000 150,000

Tomlesdrev OOO Tomsk 300,000

Tomsk Particleboard Mill OJSC Tomsk 190,000 190,000

Tscherepowetski Tscherepowets 231000 231000

Ufa Plywood Mill LLC Privolzhskiy 50,000 50,000

Ugra OOO Ugra 150,000 150,000

United Panel Group Komi 375000 375000

Ust-Ilimsk Woodworks (Eastbridge Capital Partners) Ust-Ilimsk 157000 157000

Uvadrev Holding OAO Uve 500,000 500,000

Uvadrev Holding OAO Uva 170,000 170,000

Volgograd Mebel, JSC Mikhajlovka 50,000 50,000

Vyshnevelotsky DOK Volochek, 102,000 102,000

Yugra-Plit Plc (Department of Property of Khanty-Mansiysk) Sovetskiy, Khanty-Mansiysk 220,000 220,000

Zavod Nevskiy Laminate Ltd. Saint Petersburg 50,000 50,000

Zheshartsk Plywood Mill Syktyvkar 88,000 88,000

Total Russia 12,103,000 13,723,000

Serbia Spik Iverica (Fantoni) Ivanijca 150,000 150,000

Total Serbia 150,000 150,000

Slovakia Bucina DDD Zvolen 180,000 180,000

Kronospan (P&M Kaindl) Presov 350,000 350,000

Kronospan (P&M Kaindl) Zvoten 590,000 590,000

Swedwood (IKEA) ex VMG Trnava 160,000 160,000

Total Slovakia 1,280,000 1,280,000

Slovenia Lesna TIP Otiski Vrh d.d Sentjanz 330,000 330,000

Total Slovenia 330,000 330,000

Spain Finsa (Spain) Satiagno de Compostela 330,000 330,000

Finsa (Spain) Tordera Mugika 270,000 270,000

Utisa (Finsa) Albacete 290,000 290,000

Utisa (Finsa) Cella Teruel 285,000 285,000

Utisa (Finsa) Cella Teruel 380,000 380,000

Interbon (Kronospan P&M Kaindl) Burgos 280,000 280,000

Interbon (Kronospan P&M Kaindl) Burgos 363,000 363,000

Losan Group Cuenca 100,000 100,000

Losan Group Soria 100,000 100,000

Tafisa (Sonae Indústria, Portugal) Valladolid 150,000 150,000

Tafisa (Sonae Indústria, Portugal) Linares 450,000 450,000

Unemsa (Union de Empresas Madereras SA) Gruppo Tojeiro Carballo (La Coruna) 100,000 100,000

Tableros Peruanos SA Aldaia 790,000 790,000

Tableros Peruanos SA Aldaia 79,000 79,000

Total Spain 3,967,000 3,967,000

49

Sweden ACB Laminat AB Brunflo 70,000 70,000

ACB Laminat AB Brunflo 100,000 100,000

Byggelit AB Lit 80,000 80,000

Swedspan AB (IKEA Industry) Hultsfred 400,000 400,000

Total Sweden 650,000 650,000

Switzerland Kronospan Schweiz AG (Swiss Krono Group) Menznau 580,000 580,000

Total Switzerland 580,000 580,000

Turkey Cumorsan AS Tarsus 140,000 140,000

Devrektas AS Devrek 90,000 90,000

Foca-Sunta AS Foca 75,000 75,000

Ittas AS Inegol 110,000 110,000

Kastamonu Entegre Group Kastamonu 220,000 220,000

Kastamonu Entegre Group Balikesir 630,000 630,000

Kastamonu Entegre Group Gebze 560,000 560,000

Kastamonu Entegre Group Samsun 220,000 220,000

Kastamonu Entegre Group Tarsus 140,000 140,000

MKE Marangoz Fabrikasi Ankara 150,000 150,000

Orma AS Isparta 195000 195000

Samedoglu Orman AS Mersin 150,000 150,000

Serdar Aỉaç Kaplama Sanayi A.ỉ. Inegöl Bursa 90,000 90,000

Setas AS Kutahya 125,000 125,000

SFC Entegre Orman AS Kastomonu 50,000 50,000

SFC Entegre Orman AS Kastomonu 140,000 140,000

Starwood Orman Lines 2 Inegol, Bursa 270,000 270,000

Sumas Suni Tahta Ve Mobilya AS Balikesir 60,000 60,000

Suntasan AS Eskisehir 75,000 75,000

SuntaTahta Sanayii TAS Lines 2 Istanbul 160,000 160,000

SuntaTahta Sanayii TAS Istanbul 180,000 180,000

Tever Agac Sanayi ve Ticaret AS Cerkezkoy 90,000 90,000

Tever Agac Sanayi ve Ticaret AS Istanbul 112,000 112,000



Yildiz Entegre AS Orma, Isparta 450,000

Yildiz Entegre AS Akhisar, Kutahya 540,000 540,000

Yildiz Entegre AS Mudurnu, Bolu 345,000 345,000

Yonsan Ege Yonga AS Izmir 70,000 70,000

Yonsan Ege Yonga AS Izmir 240,000 240,000

Yontas AS Samsun 90,000 90,000

Yontas AS Siteler-Ankara 90,000 90,000

Total Turkey 5,607,000 6,057,000

UK Norbord Ltd. Canada Cowie 285,000 285,000

Norbord Ltd. Canada South Molton 190,000 190,000

50



Egger (UK) Ltd. (Fritz Egger GmbH) Hexham 725,000 725,000

Egger (UK) Ltd. (Fritz Egger GmbH) Hexham 180,000 180,000

Egger (Barony) Ltd. (Fritz Egger GmbH) Barony, Ayrshire 400,000 400,000

Kronospan Ltd. (P&M Kaindl) Chirk 680,000 680,000

Sonae Industria (UK) Ltd. (fire closed plant Sept 2013) Liverpool 450,000 450,000

Spanboard Products Ltd. (Sonae) Coleraine N. Ireland 60,000 60,000

Spanboard Products Ltd. (Sonae) Coleraine N. Ireland 40,000 40,000

Total UK 2,560,000 2,560,000

Ukraine Krono-Ukraine LLC (Swiss Krono Group) Broshniv-Osada 600,000 600,000

Total Ukraine 600,000 600,000

TOTAL EUROPE 59,071,000 60,279,000

TOTAL ASIA-PACIFIC 20,218,000 20,318,000

TOTAL N. AMERICA 11,764,000 11,764,000

TOTAL S. AMERICA 8,754,000 8,754,000

TOTAL MIDDLE EAST & AFRICA 2,906,000 2,906,000

TOTAL WORLDWIDE [EX CHINA] 102,713,000 104,021,000

TOTAL CHINA 19,169,000 18,974,000

WORLD TOTAL 121,882,000 122,995,000

51

China MDF Listing 2015

Company/Group Province City/Town Capacity cu m/yr

Start up Year

Anhui Asia Europe Wood Industrial Co. Ltd. Lines 2 MD/HDF Anhui Chuzhou 150,000 2005

Anhui Bengbo Dexiang Wood Industry Co. Ltd. Anhui Bengbo 50,000 2007

Anhui Golden Forest Wood Based Panel Co. Ltd. Anhui Huaibei 40,000 2003

Anhui Guangda Co. Ltd. Anhui Guangda 80,000 2010

Anhui Jinchan Wood Based Panel Co. Ltd. Anhui Huaibei 15,000 1996

Anhui Jinchan Wood Based Panel Co. Ltd. (Huaibei Coal Mine Bureau) Anhui Liu’an 80,000 2003

Anhui Liu’an Jiecheng Wood Co.Ltd. (Jiecheng Corporation) Anhui Liu’an 70,000

Anhui Liu’an Jiecheng Wood Co.Ltd. TMDF Jiangsu Guannan 40,000

Anhui QiXiang Forest Products Co. Ltd. Anhui Xiaoxian 100,000 2012

Anhui Taihu Linxing Board Industry Limited Liability Co. Anhui Taihu 80,000 2004

Anhui Taihu Linxing Board Industry Limited Liability Co. Anhui Liuan 80,000 2005

Anhui Huaibei Linxing Board Industry Ltd. Anhui Huaibei 80,000 2006

Aosen Wood Based Panel Co. Ltd. Henan Mengzhzou 80,000 2005

Asia Dekor (Heyuan) Co. Ltd. (Asia Timber Products Co. Ltd.) HDF/THDF owned by CVC Asia Pacific Ltd. Guangdong Heyuan 200,000 2005

ATP (Plantation Timber Products and Asia Dekor merger) Shanghai Shanghai 750,000

ATP Hubei Shishou 85,000 1998

Baishi Mountain Forest Bureau, Line 1 Jilin Baishishan 30,000 1996

Baishi Mountain Forest Bureau, Line 2 Jilin Baishishan 30,000 2001

Baosteel Woodbased Panel Co. Ltd. Liaoning Dandong 60,000 1998

Baosteel Woodbased Panel Co. Ltd. Liaoning Dandong 50,000

Beichuan Jiancheng Industrial Co. Ltd. Sichuan Beichuan 50,000 2005

Beichuan Jiancheng Industrial Co. Ltd. Lines 2 Sichuan Beichuan 70,000 2001

Beihai Wood Based Panel Plant (state-owned Guangxi Forestry Bureau) 2 Lines Guangxi Hepu 130,000 2003

Beijing Guanghua Timber Company Beijing Beijing 25,000 1990

Changqing Wood-Based Panel Co. Ltd. Guangxi Xingye 30,000 2000

Chengdu Quanyou Furniture Co. Ltd. Lines 2 Sichuan Chongzhou 120,000 2008

Chengdu Quanyou Furniture Co. Ltd. Lines 2 Sichuan Chengdu 100,000 2007

52



Chengdu Quanyou Furniture Co. Ltd. Lines 2 Sichuan Quanyou 100,000 2010

Chenming Paper Shandong Chenming Qihe Wood Industry Co. Ltd. Lines 2 Shandong Qihe 160,000 2004

Chenming Paper Shandong Lindun Wood Industry Co. Ltd. Lines 2 Shandong Heze 160,000 2004

Chenming Xinli Thermoelectricity Plant Shandong Shouguang 75,000 2003

China Everbright Timber Industry Co. Ltd. (created by State Council to aid reform of China’s economy) Guangdong Shenzhen 30,000 1998

Chiping XinDa Density Fiberboard Co. Ltd. MDF HDF Lines 2 Shandong Chiping 200,000 1999

Chuzhou Huaneng Artificial Board Co. Ltd. (Anhui Chuzhou Huaneng Man Made Board Co.Ltd.) Anhui Chuzhou 50,000 1990

Chuzhou Huaneng Artificial Board Co. Ltd. Anhui Chuzhou 100,000 2001

Dare Global Group Danyang Dare Wood Based Panel Co. Ltd. HDF Jiangsu Danyang 324,000 2002

Dare Global Group Funing Dare Wood Based Panel Co. Ltd. MDF Jiangsu Funing 100,000 2000

Dare Global Group Fuyang Dare Wood Based Panel Co. Ltd. MDF Anhui Fuyang 100,000 2002

Dare Global Group HeiLongJiang Dare Wood Based Panel Co. Ltd. Heilongjiang Suifenhe 100,000 2008

Dare Global Group Jiangxi Dare Wood Based Panel Co. Ltd. MDF/HDF Jiangxi Fuzhou 250,000 2006

Dare Global Group Maoming Dare Wood Based Panel Co.Ltd. THDF Quangdong Maoming 300,000 2004

Dare Global Group Shandong Dare Wood Based Panel Co. Ltd. Shandong Heze 250,000 2005

Dare Global Group Zhaoqing Dare Wood Based Panel Co. Ltd. Quangdong Zhaoqing 250,000 2008

Dazhou Shengda Co. Ltd. Sichuan Shengda Man Made Fibreboard Co. Ltd. HDF Sichuan Dazhou 160,000 2007

Dazhou Shengda Co. Ltd. Sichuan Guangyuan 250,000 2010

Deer New material Co. Ltd. HDF Kaiyuan Liaoning 150,000 2010

Dong Zheng Group (ex Guangxi Dong Zheng Wood Co. Ltd. ) Lines 2 Guangxi Chongzhou 180,000 2010

Dong Zheng Group (ex Guangxi Laibin Kaili Wood Industry Co. Ltd. Guangxi Yizhou 135,000 2008

Dong Zheng Group (ex Guangxi Dong Lin Wood Co. Ltd.) Guangxi Yiyang 60,000 2003

Dong Zheng Group (ex Guangxi Dong Lin Wood Co. Ltd.) Lines 2 Jiangxi Jiujiang 105,000 2009

Dong Zheng Group (ex Guangxi Yizhou Kaili Wood Industry Co. Ltd.) Guangxi Fusui 40,000 2003

Dongfang Wood Industry Co. Ltd. Anhui Xuancheng 80,000 2002

Dongfang Wood Industry Co. Ltd. Jiangsu Changshu 15,000 1996

Dongfang Wood Industry Co. Ltd. Jiangsu Changshu 30,000 2000

Dongfang Wood Industry Co. Ltd. Jiangsu Fengyang 80,000 2003

Dongfang Wood Industry Co. Ltd. Jiangsu Hongze 30,000 2000

Dongfang Wood Industry Co. Ltd. Jiangsu Hongze 30,000 2001

Dongfang Wood Industry Co. Ltd. Jiangsu Huaiyin 30,000 2003

Dongying Dongguang Artificial Board Decoration Co. Ltd. MDF/HDF Shandong Dongying 200,000 2007

Dongying Zhenghe Wooden Ware Co,.Ltd. (ex Shandong Guangrao Petrochemical Industry Group) Shandong Dongying 50,000 1996

Dongliya Wood Industries Co. Ltd. Sichuan Gongxian 50,000 2007

Dongying Zhenghe Wood Industry Co. Ltd. Shandong Dongying 50,000 2002

Dongying Zhenghe Wood Industry Co. Ltd. MDF HDF Shandong Dongying 160,000 2004

Dunhua Fodun Wooden lndustry (Hong Kong Datu Group) HDF Sichuan Santai 50,000 2007

Fanhua Forestry Investment Development Co. Ltd. MDF/HDF Yunnan Feicheng 150,000 2011

Mining Group Co. Ltd. Dafeng Mine Guangdong Kaiping 80,000 2011

Five-Union Wood Based Panel Co. Ltd. Guangdong Kaiping 70,000 2002

Five-Union Wood Based Panel Co. Ltd. Lines 2 Guangdong Yingde 70,000 2003

Foshan Nanhai Changmao Wood Industry Co. Ltd. Guangdong Foshan 50,000 2008

Foshan Nanhai Kang Sheng Wood Industry Co. Ltd. (HongKong China XingYe Holdings Ltd.) Lines 4 Guangdong Foshan 130,000 2002

Foshan Shunde Shunlong MDF-board Co. Ltd. Guangdong Foshan 50,000

Foshan Shunlong MDF-board Co.Ltd. Guangdong Foshan 100,000 2011

53

Fugou Cotton & Flax Company Henan Fugou 30,000 1997

Fugou Cotton & Flax Company Henan Fugou 80,000 2011

Huqian Forest Industry Technology Co, Ltd. former Fujian Guangze Huqian Wood Based Panel Co.Ltd. Fujian Guangze 150,000 2009

Zhejiang Chun’an Huqian Man-made Board Manufacturing Co. Ltd. Zhejiang Chun an 115,000 2005

Fujian Guangze Huqian Man-made Board Manufacturing Co. Ltd., Anhui Funan 270,000 2010

Fujian Nanping Huqian Man-made Board Manufacturing Co. Ltd., Fujian Quanzhou 130,000 2006

Xinyi Huqian Man-made Board Manufacturing Co. Ltd. Fujian Jianou 100,000 2004

Fujian Hubei Furen Wood Industry Co. Ltd. (Joint-Stock owner restructure 2002) Hubei Jingzhou 200,000 2012

Fujian Jianou Furen Wood Industry Co. Ltd. THDF Jianou Changji 60,000

Fujian Jianou Furen Wood Industry Co. Ltd. (sub Fujian CFC Industries Company Limited.) Jianou Changji 100,000

Fujian Liancheng Baiguan Co. Ltd. Fujian Liancheng 40,000 2004

Fujian Yongan Forestry (Group) Joint-Stock Co. Ltd. Fujian Yongan 110,000 1996

Fujian Yongan Forestry (Group) Joint-Stock Co. Ltd. THDF Zhaoqing Huaiji 250,000 2010

Fujian Zhong Fu Industries Co. Ltd. Fujian Fuzhou 60,000 1986

Fujian Zhong Fu Industries Co. Ltd. HDF Hunan Changsha 130,000 2010

Fujian Zhong Fu Industries Co. Ltd. HDF (2008 maj holder Sunny Time Forestry Development (Fujian) Co. Ltd.) Fujian Fuzhou 100,000 2006

Zhangzhou Zhong Fu Woodworking Co. Ltd. Yunnan Jinggu 220,000 2011

Fuyang MDF Plant Lines 2 Liaoning Shenyang 60,000 1996

Fuzhou Wood Based Panel Plant Fujian Fuzhou 53,000 1982

Fuzhou Wood Based Panel Plant Fujian Fuzhou 56,000 1996

Gaocheng Hongchang MDF Factory Hebei Shi Jiazhuang 50,000 2010

Gaocheng Sengxin MDF Factory Hebei Shi Jiazhuang 50,000 2010

Gaofeng Guanhua Wood Based Panel Co. Ltd.,. Guangxi Luchuan 80,000 2000

Gaofeng Guanhua Wood Based Panel Co. Ltd. Guangxi Luchuan 80,000 2001

Gaofeng Wood Based Panel Co. Ltd. Guangxi Nanning 100,000 2001

Gaofeng Wood Based Panel Co. Ltd. Guangxi Rongxian 150,000 2004

Gaofeng Wood Based Panel Co. Ltd. Guangxi Nanning 150,000 2003

Gaofeng Wood Based Panel Co. Ltd. (State-owned Forest Network) Guangxi Nanning 60,000 1997

Golden Field Wood Industry Co. Ltd. Guangxi Guiping 40,000 2007

Green Continent Industrial Co. Ltd. (Hubei) Hubei Xianning 60,000 2004

Green Continent Investment Co. Ltd. (Shanghai ) Lines 2 Shanghai Changshou 50,000 2000

Green Continent Wood Based Panel Co. Ltd. (Anhui Huangshan) Anhui Huangshan 100,000 2004

Green Continent Wood Based Panel Co. Ltd. (Anhui) Anhui Qimen 80,000 2000

Green Continent Wood Based Panel Co. Ltd. (Fujian Jian’ou) Fujian Jian’ou 80,000 2005

Green Continent Wood Based Panel Co. Ltd. (Jaingxi) Jaingxi Jian 80,000 2005

Green Continent Wood Based Panel Co. Ltd. (Jaingxi) Jaingxi Jian 165,000 2015

Green Continent Wood Based Panel Co. Ltd. (Suichuan) Suichuan Hongya 70,000 1996

Green Continent Wood Based Panel Co. Ltd. (Xinjiang) Xinjiang Changji 40,000 1998

Greet Wall Cotton Industry Co. Ltd. Hebei Jizhou 80,000 1999

Guandong Yuehai MDF Co. Ltd. MDF/HDF Guangdong Zhanjiang 80,000 1996

Guangdong Hanhong Wood Industry Co. Ltd. MDF/HDF Guangdong Shaoguan 120,000 2012

Guangdong Hongtao Wood Industry Co. Ltd. Guangdong Jiangmen 40,000 2005

Guangdong Huadeli Group Lines 1&2 Guangdong Lianjiang 100,000 2010

Guangdong Liren Guanhua Co. Ltd. Lines 2 Guangdong Kaiping 70,000 1996

Guangdong Meizhou Weilibang Corp., Guangdong Meizhou 70,000 1997

Guangdong Taishan Weilibang Wood Industry Co. Ltd. (ex Taishan Weilibang Wood Co.Ltd.) Guangdong Taishan 200,000 2005

Guangzou Weilibang Corp., Medium-Density Fibreboard Manufacturing Co Ltd. Guangzhou Qingyuan 200,000 2006

54



Fengkai Weilibang Wood Industry Company Ltd. (Weihua Holding Group) Guangdong Fengkai 300,000 2009

Hebei Weilibang Corp., HDF Hebei Qiu County 200,000 2009

Hebei Weilibang Wood Co. Ltd. THDF Hebei Qiuxian 200,000 2008

Hubei Weilibang Wood Co. Ltd. THDF Hubei Xiangfan 220,000 2008

Liaoning Tai’an Weilibang Wood Co. Ltd. Liaoning Tai’an 220,000 2008

Quingyuan Weilibang Wood Co. Ltd. Qingyuan Qingcheng 200,000 2004

Zeng Cheng Weilibang Corp., Medium-Density Fibreboard Manufacturing Co. Ltd. Guangdong Zeng Cheng 120,000 2001

Guangdong Yangchun Weilibang Wood Co. Ltd. Lines 4 Guangdong Yangchun 400,000 2006

Guangdong Wulian Wood Industrial Group Co. Ltd. Guangdong Kaiping 50,000 2004

Guangdong Wulian Wood Industrial Group Co. Ltd. Guangdong Qinyuan 50,000 2005

Guangdong Wulian Wood Industrial Group Co. Ltd. Guangdong Shaoguan 120,000 2012

Guangdong Wulian Wood Industrial Group Co. Ltd. Guangdong Yangjiang 100,000 2006

Guangdong Wulian Wood Industrial Group Co.Ltd. Guangdong Shaoguan 50,000 2003

Guangdong Xinfeng Yuhua MDF Co. Ltd. Guangdong Xinfeng 80,000 2010

Guangdong Xinjiang MDF Co. Ltd. Guangdong Fengkai 30,000 1991

Guangxi Donglin Wood Co. Ltd. DongZheng I (MDF/HDF) Hubei Binyang 130,000 2012

Guangxi Donglin Wood Co. Ltd. DongZheng ll (MDF/HDF) Guangxi Binyang 130,000 2012

Guangxi Fenglin Wood Industry Group.Co. Ltd. (Fenglin International (Nanning) Co. Ltd.) MDF Guangxi Nanning 150,000 2004

Guangxi Fenglin Wood Industry Group.Co. Ltd. (Fenglin International (Nanning) Co. Ltd.) MDF Guangxi Nanning 220,000 2013

Guangxi Fenglin Wood Industry Group.Co. Ltd. MDF Guangxi Baise 200,000 2007

Guangxi Fenglin Wood Industry Group.Co. Ltd. MDF/HDF Guangxi Huanjiang 30,000 2005

Guangxi Hengyuntong Guigang MDF Co. Ltd. Guangxi Guigang 50,000 2005

Guangxi Hezhou Xin Rong Xing Forestry Co. Ltd. Guangxi Hezhou 220,000 2011

Hezhou Xin Rong Xing Forest Co. Ltd. Jiangxi Yichun 220,000 2011

Guangxi Nanning Changmao Wood Industrial Co. Ltd. Guangxi Ningming 40,000 2004

Guangxi Ningming Takcheong Wood Industry Co. Ltd. Guangxi Ningming 40,000 2005

Guangxi Pingle Liguan Wood Based Panel Co. Ltd. Guangxi Pingle 50,000 2007

Guangxi Pinxiang (Chinese Academy of Forestry) Guangxi Pingxiang 30,000 2003

Guangxi Rongan Huahai Wood Industry Co. Ltd. (Hangzhou Huahai Wood Industry Co. Ltd. part of (Treezo Group) PB Guangxi Rongan 50,000 2000

Shandong Linyi Huahai Wood Industry Co. Ltd. (Hangzhou Huahai Wood Industry Co. Ltd. part of (Treezo Group) MDF Shandong Linyi 80,000 2003

Guangxi Sunway Forest Products Industry Co. Ltd. MDF Guangxi Shangsi 50,000 1995

Guangxi Sunway Bobai Forest Products Industry Co. Ltd. Guangxi Bobai 200,000 2006

Guangxi Sunway Forest Products Industry Co. Ltd. Guangxi Shangsi 80,000 2005

Guangxi Sunway Forest Products Industry Co. Ltd. HDF Guangxi Wuzhou 300,000 2004

Guangxi Sunway Forest Products Industry Co. Ltd. MDF Guangxi Cenxi 150,000 2002

Guangxi Sunway Rongzhou Forest Products Industry Co. Ltd. MDF Guangxi Rongxian 150,000 2005

Guangzhou Huafangzhou Wood Panel Co. Ltd. Guangdong Guangzhou 200,000 2003

Jiangxi Nankang Huafangzhou Wood Panel Co. Ltd. Jiangxi Nankang 100,000

Guangzhou Nangang Board Industry Co. Ltd. Guangdong Guangzhou 30,000 2008

Guangzhou San Xing Wood Based Enterprises Co. Ltd. (Shi Tou Sugar Mill) Guangdong Shi Tou 50,000 1989

Guangzhou Xinxianmu Wood-Based Panel Co. Ltd. (owned by Guangzhou Weisheng Machinery Co. Ltd.) Guangzhou Xinxianmu 30,000

Guangzhou Yuhua Wood Industry Co. Ltd. Guangdong Conghua 40,000 2005

Guangzhou Yuhua Wood Industry Co. Ltd. Guangdong Xinfeng 80,000 2009

Gulin Timber Co. Ltd. Yunnan Gulin 125,000 2009

Guodong Forestry Technology Co. Ltd. Sichuan Nanchong 275,000 2009

Hainan Shengda Wood Industry Co. Ltd. Founded 2011 Hainan Island 250,000 2012

55

Hainan Yaron Wood Company Ltd. Hainan Shanya 80,000 1988

Harbin Shengxing Co. Ltd. Heilongjiang Harbin 80,000 2004

Hebei Fuyuan Wood Co. Ltd. Hebei Langfang 30,000 1999

Hebei Golden Sunbird Trading Co. Ltd. MDF/HDF Hebei Guzhou 200,000

Hebei Kaiyue Group, Wood Industry Co. Ltd. Hebei Wen An 275,000 2009

Hebei Kaiyue Wen An County TianHua Density Board Co. Ltd. Hebei Wen An 320,000 2011

Chengdu Tianlan Wood Co. Ltd. (Hebei Kaiyue Group) Beijing Shunyi 350,000 2012

Hebei Shenzhou Changcheng Wood Industry Development Co. Ltd. Hebei Shenzhou 125,000 2011

Hebei Wen An Zhenyu Wood Co. Ltd. Lines 2 Hebei Wen An 80,000 2003

Hebei Yi County Tianzelin Board Co. Ltd. Hebei Yixian 80,000 2008

Hebei Yi County Yalin Panel Industry Liability Co. Ltd. Hebei Yixian 50,000 2004

Heihe Guanghe Shengxing Forestry Co. Ltd. Guanghe Heihe 180,000 2010

Heilongjiang Da Xinan Ling Co. Ltd. Heilongjiang Da Xinan Ling 80,000 2005

Helong Forest Bureau Fiberboard Plant Lines 2 Jilin Helong 45,000 2000

Helongjiang Nanchai Wood Hydrolize Plant via CNTIC Heilongjiang Nanchai 60,000 1985

Henan Changge Xiangyu Boards Co. Ltd. Heilongjiang Changge 40,000 2004

Henan Chengde Wood Co. Ltd. Lines 2 MDF/HDF Qiaozhuang Changge 180,000 2004

Henan Juyuan Wood Industrial Co. Ltd. Henan Kaifeng 140,000 2011

Henan Kaifeng Co. Ltd. Henan Kaifeng 30,000 1997

Henan San Men Xia Mingliu Wood Industries Co. Henan Sanmenxia 15,000 1997

Henan Shangqiu Dingsheng Wood Industry Co. Ltd. Henan Shangqiu 80,000 2007

Henan Wood Based Panel Plant Henan Xihua 15,000 1998

Henan Xixia MDF Plant Co. Ltd. Henan Xixia 20,000 1996

Henan Yijia Forestry Development Co. Ltd. Henan Jiangsu 220,000 2012

Henan Yu Ren Wood Industry Co. Ltd. Henan Fugou 80,000 2010

Henan Zhoukou Hongyi Woods Co. Ltd. Henan Jiaozuo 150,000 2005

Henan Zhoukou Hongyi Woods Co. Ltd. Henan Zhoukou 150,000 2009

Henan Zhoukou Hongyi Woods Co. Ltd. THDF Henan Jiaozuo 220,000 2012

Henan Zhoukou Hongyi Woods Co. Ltd. THDF Henan Zhoukou 250,000 2012

Heze Jiaotong Group Group Coperation MDF Co. Ltd. Shandong Heze 100,000 2004

Hongfeng Wood Based Panel Co. Ltd. Jiangxi Yifeng 15,000 1995

Honghezhou MDF Factory (Honghezhou Forestry Bureau) Yunnan Jianshui 30,000 1999

Honghezhou MDF plant Jiangsu Mouding 30,000 2000

Honghezhou Mile Sugar Works Yunnan Mile 15,000 1996

Hongjian Wood Industry Co. Ltd. Sichuan Pingwu 50,000 2008

Hongshi Forest Bureau MDF Plant Lines 2 Jilin Huadian 60,000 2000

Hongtao Wood Industry Co. Ltd. Guangdong Heshan 40,000 2008

Hua Sen MDF Factory Jiangxi Chongyi 15,000 1995

Huacheng Wood Based Panel Liability Co. Ltd. Chongqing Fengdu 60,000 2008

Huaguang Decorative Board Factory Guangdong Nanhai 60,000 1996



Huai’an Huifeng Wood industry MDF/HDF Jiangsu Huai’an Suqian 150,000 2012

Hualin Wood based Panel Co. Ltd. (Owned by Samling Group Malaysia ) Anhui Anqing 80,000 2002

Hualin Wood-based Panel Co. Ltd. Hebei Shenzhou 80,000 2003

Huanqiu Wood Industries Co. Ltd. Shandong Penglan 30,000 2001

Huasen Wood Industry Co. Ltd. Anhui Shucheng 50,000 2009

Huashengxin Wood-based Panel Co. Ltd. Qiong Zhong Qiong Zhong 50,000 2009

Huashengxin Wood-bBased Panel Co. Ltd. Hainan Qujiang 50,000 2008

Huaxing Co. Ltd. Oil Field Shandong Anhui 30,000 1997

Hubei Baoyuan Group Co. Ltd. Hubei Jingmen 50,000 2000

Hubei Baoyuan Group Co. Ltd. THDF Hubei Jingmen 185,000 2006

56



Hubei Jiukesong Wood Based Panel Co. Ltd. Hubei Qichun 30,000 2000



Hubei Tianmen Tianyuan Wood Industry Co. Ltd.,. Hubei Tianmen 50,000 2007

Hubei Tianmen Tianyuan Wood Industry Co. Ltd. MDF/HDF Hubei Tianmen 145,000 2012

Hubei Xianning Wood Based Panel Plant Hubei Xianning 30,000 1995

Hubei Yichang Wufeng MDF Co. Ltd. Hubei Wufeng 30,000 1997

Huitai Wood Industry Co. Ltd. (Jiangsu Lianshui) Lines 2 Jiangsu Fuxin 80,000 2008

Huitai Wood Industry Co. Ltd. (Jiangsu Lianshui) Lines 2 Liaoning Fuxin 80,000 2008

Hunan Hengyang Timber Works Hunan Shaoyang 40,000

Hunan Hengyang Timber Works Hunan Zixing 30,000 2000

Hunan Hengyang Timber Works (Chenzhou Chuangxin Wood-Based Panel Co. Ltd.) Hunan Hengyang 15,000 1997

Hunan Hengyang Timber Works Lines 2 Hunan Zhuzhou 110,00

Hunan Huitong County Keda Co. Ltd. Hunan Huitong 15,000 1997

Hunan Lindu Wood Co. Ltd. Hunan Huaihua 30,000 1997

Hunan Senhua Wood Industry Co. Ltd. (Yiyang Senhua Forestry Development Co. Ltd.) MDF/HDF/THDF Hunan Yiyang 220,000 2011

Hunan Wood Based Panel Plant Co. Ltd. Hunan Changsha 30,000 1993

Hunan Wood Based Panel Plant Co. Ltd. Hunan Changsha 35,000 2000

Hunan XiangLin New Environmental Protection Wood Co. Ltd. THDF Hunan Changsha 135,000 2009

Hunan XiangLin Group Co. Ltd. (XiangLin Group Ltd.) Hunan Xinshao 30,000 2003

Hunan XiangLin Artificial Board Co. Ltd.,. Hunan Shaoyang 80,000 2005

Hunan XiangLin Estate Co. Ltd. Hunan Changsha 120,000 2009

Hunan Xiangyuan Wood Based Panel Co. Ltd. Hunan Ningxiang 300,000 2011

Hunan Yiyang Senghua Co. Ltd. Hunan Ningxiang 40,000 2007

Hunan Yiyang Senghua Co. Ltd. THDF Hunan Ningxiang 220,000 2010

Hunan Zhangjiajie Wood Based Panel Plant Hunan Zhangjiajie 20,000 1996

Hunan Zhuzhou Changxing Wood Based Panel Co. Ltd. Lines 3 Hunan Zhuzhou 170,000 2009

Hunjiang Wood Based Panel Plant Jilin Hunjiang 30,000 1994

Huqian Wood Based Panel Manufacturing Co. Ltd. Anhui Fuyang 220,000 2011

Huqian Wood Based Panel Manufacturing Co. Ltd. Jiangsu 150,000 2002

Huqian Wood Based Panel Manufacturing Co. Ltd. (ex Zhejiang Chunan Wood Based Panel Plant.) Zhejiang Chunan 15,000 1996

Huqian Wood Based Panel Manufacturing Co. Ltd. Lines 2 Fujian Guangze 80,000 1998

Huqian Wood Based Panel Manufacturing Co. Ltd. Lines 2 Fujian Nanping 40,000 1997

Inner Mongolia Erduosi Coal (Group) Co. Ltd. Inner Mongolia Erduosi 80,000 2010

Jianfeng Chengdu Decoration Material Co. Ltd. Sichuan Chengdu 125,000 2009

Jianfeng Forest Products Co. Ltd. Sichuan Mianyang 50,000 2008

Jianfeng Forestry Co. Ltd. Sichuan Mianyang 60,000 2010

Jianfeng Forestry Co. Ltd. MDF/HDF/LDF Sichuan Mianyang 150,000 2012

Jiangsu DaJiang Wood Group Yitao Co. Ltd. MDF Guangdong Yitao 100,000 2012

Jiangsu DaJiang Wood Group Liuji Co. Ltd. HDF Hubei Liuji 100,000

Jiangsu DaJiang Wood Group Wuji Co. Ltd. MDF Hebei Wuji 100,000

Jiangsu DaJiang Wood Group Donghai Co. Ltd. MDF Lianyungang Donghai 100,000

Jiangsu DaJiang Wood Group Shuyang Co. Ltd. MDF, Lines 3 Jiangsu Shuyang 300,000

Jiangsu Dongdun Wood Industry Group Anhui Fengyang 80,000 2005

Jiangsu Dongdun Wood Industry Group Anhui Hongze 160,000 2000

57

Jiangsu Dongdun Wood Industry Group Anhui Xuancheng 150,000 2003

Jiangsu Dongdun Wood Industry Group Jiangsu Changshu 100,000 2009

Jiangsu Dongdun Wood Industry Group (sub Anhui DongDun Wood Industry Co. Ltd.) ex state Anhui Huaiyin 30,000 1999

Jiangsu Dongdun Wood Industry Group Lines 1&2 Anhui Taihei 180,000 2010

Jiangsu Dongdun Wood Industry Group THDF Anhui Meilong 250,000 2007

Jiangsu Hanyun Wood Industry Co. Ltd. Jiangsu Huai’an 150,000 2012

Jiangsu Jinfeng Wood Co. Ltd. Jiangxi Shuyang 100,000 2002

Jiangsu Shengmao Wood industry Co. Ltd. Jiangsu Siyang, 200,000 2004

Jiangsu Yinmao Holding (Group) Co. Ltd. Jiangsu Suining 80,000 2007

Jiangxi Dayu County MDF Jiangxi Dayu 220,000 2013

Jiangxi Huayi Wood Industry Co. Ltd. Lines 2 Nankang Jiangsu 200,000 2011

Jilin Fundin Timber Co. Ltd. Anhui Huaibei 40,000 1995

Jinchen Wood Based Panel Co. Ltd. Heilongjiang Nanchai 40,000 2003

Jinggu (Yunnan) Foresty Co. Ltd., Yunnan Jinggu 80,000

Jinhe Forestry Bureau Inner Mongolia Genhe 50,000 1999

Jining Gaoxing Timber Poducts Co. Ltd. Shangdong Jining 50,000

Jinjia Wood Industry (Hubei) Co. Ltd. Lines 2 Hubei Jiayu 60,000 2009

Jinjiang Group, Hangzhou, Zhejiang, Shandong Heze 50,000 2000

Jinlong MDF Plant Liaoning Shenyang 30,000 1996

Jizhou Wood Based Panel Co. Ltd. Hebei Jizhou 80,000 2003

Jizhou Wood Based Panel Co. Ltd. Lines 2 Hebei Jizhou 60,000 1994

Kaiping Liguan Wood Based Panel Co. Ltd. Guangdong Kaiping 40,000 2006

Kanglan MDF Group Co. Lines 2 Guangdong Deqing 60,000 1992

Keruima Forest Industry Development Liability Co. Ltd. Sichuan Yibin 100,000 2008

Krono Jiangsu Wood Panels Co. Ltd. (ex Shenhua Wood Based Panel Plant) owned by Kronospan Germany Fengtai Beijing 170,000 1999

Krono Jiangsu Wood Panels Co. Ltd. (ex Fumanite Fibreboard Co.) HDF Jiangsu Danyang 90,000 1995

LangShun International Wood Industry Group, MDF HDF Heilongjiang Langxiang 100,000 2003

LangShun Wood Based Panel Co. Ltd. , MDF HDF Heilongjiang Suifenhe 100,000 2006

LangShun Wood Based Panel Co. Ltd. MDF HDF Heilongjiang Suifenhe 100,000

Lantian Wood Products Co. Ltd. Liaoning Shenyang 30,000 1997

Leizhou Forest Bureau Wood Based Panel Plant Guangdong Suixi 30,000 2002

Leshan Jixiang Wood Panel Co. Ltd. Guangdong Heyuan 210,000 2004

Leshan Jixiang Wood Panel Co. Ltd. Sichuan Leshan 150,000

Leshan Jixiang Wood Panel Co. Ltd. (owns Asia Dekor Group ) Sichuan Leshan 115,000

Leshan Jixiang Wood Panel Co. Ltd. Hubei Shishou 215,000

Liaoning Huairen MDF Plant Liaoning Huairen 30,000 1995

Lin An Wood Industry Co. Ltd. Sichuan Cangxi 50,000 2009

Lianyungang Jieda Wood Co.Ltd. Jiangsu. Lianyungang 40,000

Linyi Dexin Wood Industry Co. Ltd. Shandong Gaotang 40,000 2002

Linyi Dexin Wood Industry Co. Ltd. (ex Linyi Qiyang Laminated Board Factory) Shandong Gaotang 50,000 2004

Linyi Dexin Wood Industry Co. Ltd. 2 lines Shandong Gaotang 60,000 2001

Zhejiang Jiangshan Liren Wood Industry Co.Ltd. (ex State owned Lishui Timber Factory) Lines 2 Zhejiang Lishui 370,000 2008

Lishui OAK Co. Ltd. Fujian Zhangping 30,000

Lishui OAK Co. Ltd. Lines 2x150,000 + 2x200,000 Fujian Jiangyang 60,000

Lishui OAK Co. Ltd. (Pucheng Liping Wood-based Panel Co.Ltd.) Fujian Pucheng 80,000 2008

Lishui OAK Wood-Based Panel Co. Ltd. Fujian Jianou 30,000

Shanghai Wanxiang Wood Industry Co.Ltd. Shanghai Fengxian 120,000 2010

58



Jianyang Senlan Wood Industry Co. Ltd. MDF/HDF Fujian Guangzhou 200,000

Zhejiang Lishui Wood Based Panel Co. Ltd. Guangxi Zhaopin 100,000

Luyuan (Anhui) Wood Industry Co. Ltd. Anhui Ningguo 80,000

Luyuan (Fujian Pucheng) Wood Industry Co. Ltd. Fujian Pucheng 80,000 2001

Luyuan (Fujian) Wood Industry Co. Ltd. Fujian Longyan 80,000

Luyuan (Guangdong) Wood Industry Co. Ltd. Guangdong Yangdon 200,000 2007

Luyuan (Jiangxi) Wood Industry Co. Ltd. Jiangxi Xinfeng 80,000

Luyuan (Longquan) Wood Industry Co. Ltd. Lines 2 Zhejiang Longquan 70,000 2003

Luyuan (Shaowu) Wood Industry Co. Ltd. Fujian Shaowu 150,000 2011

Luyuan (Zhejiang) Wood Industry Co. Ltd. Zhejiang Suichang 200,000

Lvzhousenggong Liuan Co. Ltd. Anhui Liuan 200,000 2011

Meiling Wood Based Panel Factory Fujian Nanping 40,000 2003

Mr Liu Tao Xinjiang Bohu 50,000

Mr Wu Chunhua Anhui Liuan 50,000

Mr. Fan Xu Dong Sichuan Renshou 60,000 2009

Mr. Fan Xu Dong Lines 2 Sichuan Ya’an 100,000 2007

Mr. He Dalu Sichuan Penshan 60,000 2009

Mr. Lu Peng Jiangsu Shuyang 50,000 2008

Mr. Wu Chunhua Anhui Liuan 50,000 2008

Mr. Yin Huacheng Sichuan Jiajiang 50,000 2007

Nanshan Wood Industries Co. Ltd. Lines 2 Shandong Longkou 45,000 2004

Nature Wood Based Panel Co. Ltd. Jiangxi Shangrao 80,000 2009

Pearl River Sugarcane Chemical General Plant Guangdong Fanyu 18,000 1991

Pingyuan Youbang Wood Industrial Co. Ltd. Guangdong Meizhou 50,000 1995

PTP Leshan (Plantation Timber Products Leshan Ltd.) Lines 2 Sichuan Shishou 125,000 1996

PTP Leshan (Plantation Timber Products Leshan Ltd.) THDF Sichuan Leshan 240,000 2009

Qingyuan Yingde Wulian Artificial Board Co. Ltd. Guangdong Qingyuan 50,000 2002

Qiushi Wood Co. Ltd. Shandong Qingdao 80,000 2001

Quzhou Tianhang Wood Based Panel Co. Ltd. Guangdong Kaiyuan 80,000 2003

Quzhou Timber Industry Corporation Guangdong Yangshan 150,000 2008

Robina Wood Ltd. (Robin Group ex State-owned Yichun Forestry Management Co Ltd.,) HDF Jiangxi Yichun 90,000 2000

Robina Wood Ltd. MDF HDF Jiangxi Yichun 120,000 2004

Robina Wood Ltd. MDF HDF Jiangxi Yichun 200,000 2001

Homanit (China) Co. Ltd. (joint venture by Robin Group & Homanit GmbH) Lines 2 Jiangxi Yichun 400,000 2005

Saihanba Wood Based Panel Co. Ltd. Yunnan Weichang 30,000 1996

Sammy (Shengyuan) Wood Based Panel Co. Ltd. Shandong Zibo 50,000 1996

Sammy Wood Based Panel Co. Ltd. Shandong Zibo 80,000 2002

Sammy Wood Based Panel Co. Ltd. Shandong Zibo 80,000 2005

Sammy, Shengyuan Shandong Co. Ltd. (Huantai, & Hong Kong Wai-Ching Ltd. joint venture) Shandong Zibo 150,000 2012

Sandu County MDF Plant Guizhou Sandu 30,000 1999

Sanming Yinghan Construction Estate Co. Ltd. Hebei Sanming 40,000 1997

Sanwei (Guangxi Wuzhou) Wood Industry Co. Ltd. Guangxi Wuzhou 240,000 2005

Sanya Huasheng Economic Development Co. Ltd. Fujian Haikou 80,000 2004

Sanya Huasheng Economic Development Co. Ltd. Hainan Qiongzhong 50,000

Sanyuan Property Developing Co. Ltd. Guangxi Baise 230,000 2003

Sanyuan Property Developing Co. Ltd. Lines 6 Guangxi Nanning 120,000 1996

Senhua Plywood Ltd. MDF Zhejiang Senhua 100,000

59

Senlan Wood Co. (Li Ren Wood Group) Fujan Lishui 60,000 1994

Senlan Wood Co. Ltd. Zhejiang Fujian 200,000 2006

Senlan Wood Co. Ltd. Zhejiang Jiangshan 150,000 2003

Li Ping Man Made Board Company Fujan Pucheng 100,000 2002

ShaanXi Zhong Xing Timber Co. Ltd. ShaanXi Hanzhong 30,000 1995

ShaanXi Zhong Xing Timber Co. Ltd. ShaanXi Hanzhong 50,000 2001

ShaanXi Zhong Xing Timber Co. Ltd. ShaanXi Xian 220,000 2009

ShaanXi Zhong Xing Timber Co. Ltd. THDF ShangXi Xian 150,000 2005

Shandong Chengwu Exported Tung Tree Products Factory ShaanXi Chengwu 200,000 2005

Shandong Chiping Hengxi MDF Co. Ltd. Shandong Chiping 15,000 1986

Shandong Chiping Nengtong MDF Liability Co. Ltd. Lines 32 Shandong Chiping 105,000 2003

Shandong Chiping Xinda Density Fiberboard Co. Ltd. Shandong Chiping 15,000 1995

Shandong Chiping Xinda Density Fiberboard Co. Ltd. Shandong Chiping 40,000 2003

Shandong Dongyu Energy Co. Ltd. Shandong Feicheng 200,000 2004

Shandong Fambros Group (Senquan Board Industries Co. Ltd.) Shandong Yanggu 100,000 2004

Shandong Gaotang Thermo-Electric Plant Shandong Gaotang 80,000 2003

Shandong Heyou Wood Industrial Group Co. Ltd. Shandong Yucheng 120,000 2004


Shandong Heyou Wood Industrial Group Co. Ltd. Sichuan Nanbu 100,000 2009




Shandong Heyou Wood Industrial Group Co. Ltd. Hubei Yixian 160,000 2012

Shandong Houzhen Plywood Plant Shandong Houzhen 80,000 2004

Shandong Jining (China Petroleum Chemical) Wood Based Panel Co. Ltd. Shandong Jining 80,000 2003

Shandong Libo Daily Chemical Products Co. Ltd. Shandong Weifang 80,000 2003

Shandong Qixing Board Industry Co. Ltd. Shandong Zouping 80,000 2001

Shandong Sen Tai MDF Co. Ltd. Shandong Ningjin 40,000 2000

Shandong Senxin Wood Industry Co. Ltd. Hubei Jingzhou 50,000 2001

Shandong Xinhua Chiping Decorative Materials Co. Ltd. MDF/HDF Shandong Chiping 50,000 1999

Shandong Zhenghe Wood Industry Co. Ltd. Shandong Fujian 80,000 2004

Shanghai Wood Based Panel Plant Shanghai Shanghai 37,000 1987

Shanghai Xin Gaochao Group Co. Ltd. Suzhou Shenbo Wood Industry Co. Ltd. Anhui Lingbi 80,000 2009

Shanghai Xin Gaochao Group Co. Ltd. Shanghai Xinyi Wood Industry Co. Ltd. Shanghai Nanhui 80,000 2004

Shangpin MDF Plant Lines 2 Henan Shangcai 60,000 2000

ShanXi Tongchuan Wood Based Plant Hainan Tongchuan 80,000 2003

ShanXi Xinyuan JD Wooden Industry Co. Ltd. Shanxi Xinyuan 140,000 2010

Shanya (Hainan) Timber Plant Lines 2 Hainan Shanya 60,000 1997

Shanya (Hainan) Timber Plant Hainan Shanya 60,000 2002

Shaoyang Chuangxin Wood Baed Panel Co, Ltd. Hunan Shaoyang 40,000 2005

Shengda Wooden Products Co. Ltd. Sichuan Chengdu 130,000 2006

Shenglin Timber Slab Co. Ltd. MDF/HDF Hebei Yi County 160,000 2000

Shenyang Fuyang MDF Plant Lines 2 Liaoning Shenyang 60,000 1996

Shenyu Wood Industry Co. Ltd. Sichuan Naxi 40,000 1998

Shouguang City Shengxing Company Co. Ltd. Shengxing Shouguang 50,000

Shouguang Cotton & Yarn Group Shandong Shouguang 30,000 1996

Shouguang Fushi Wood Co. Ltd. MDF/HDF Shandong Weifang 100,000 2008

Shouguang Kundu Wood Industry Co. Ltd. Shandong Shouguang 30,000 2005

60



Shouguang Pengyuan Industry Co. Ltd. Shandong QingDao 50, 000 1997

Shouguang Ruiwang Timber Industry Co,. Ltd. Shandong Weifang 85,000 2000

Shuangbai MDF Factory (Shuangbai Forestry Bureau) Yunnan Shuangbai 40,000

Shunda Forest Plantation Products Co. Ltd. Sichuan Ziyang 30,000 2004

Shuyang JinFeng Wooden Product Co. Ltd. Shuyang Jiangsu 120,000 2003

Shuyang New Concept Wood Industry Co. Ltd. (sub of Jiangsu Yeshi Group) Jiangsu Shuyang 50,000 2004

Sichuan Guodong Construction Co. Ltd. HDF/THDF Sichuan Chengdu Mianyang 300,000 2010

Sichuan Guodong Construction Co. Ltd. HDF/THDF Sichuan Shuangliu 300,000 2008

Sichuan Guodong Construction Co. Ltd. MDF/HDF Lines 2 Guangyuan Gaoping 450,000 2009

Sichuan Nanchong Guodong Construction Co. Ltd. HDF a Sichuan Chengdu 300,000 2011

Sichuan Nanchong Guodong Forestry Technology Co. Ltd. Sichuan Nanchong 200,000 2011

Sichuan Anxian Xianglong MDF Plant Sichuan Anxian 40,000 2007

Sichuan Baoshan Corporation (Group) Co. Ltd. THDF Sichuan Pengzhou 250,000 2011

Sichuan Chengdu Jianfeng Industrial Co. Ltd. Sichuan Dayi 40,000 2007

Sichuan Jiajiang Shenglin Forestry Wood Industry Co. Ltd. Sichuan Jiajiang 60,000 2010

Sichuan Zhongtiandi Wood Co. Ltd. Sichuan Chengdu 60,000 2008

Songlin Wood Based Panel Co. Ltd. Jiangsu Shuyang 80,000 2003

South China Sea Petroleum MDF Plant Guangdong Huaiji 30,000 1991

Suichang Wood Industry Co. Ltd. Anhui Taihe 100,000 2010

Suichang Wood Industry Co. Ltd. Zhejiang Fuyang 40,000 2003

Suichang Wood Industry Co. Ltd. Zhejiang Shaowu 80,000 2001

Suichang Wood Industry Co. Ltd. Zhejiang Xinfeng 80,000 2001

Suichang Wood Industry Co. Ltd. Anhui Ningguo 80,000 2002

Suichang Wood Industry Co. Ltd. Lines 2 Zhejiang Longquan 60,000 2000

Suichang Wood Industry Co. Ltd. Lines 4 Zhejiang Suichang 110,000 1999

Suichuan Donglin Wood Based Panel Co. Ltd. Jiangxi Suichuan 30,000 1998

Suqian Stronger Building Material Co. Ltd. Jiangsu Suqian City 600,000

Taihe Dongdin Co. Ltd. Anhui Taihe 130,000 2011

Teng Xian Wood Based Panel Plant via CMC Anhui Taihe 105,000 2010

Tengchong Gulin Tree Industry Co. Ltd. Yunnan Tenching 70,000 2004

Tengchong Gulin Tree Industry Co. Ltd. Yunnan Tenching 165,000 2012

Tiangang Wood Industry Co. Ltd. Sichuan Langzhong 50,000 2008

Tiangong Wood Based Panel Co. Ltd. Jiangsu Dafeng 50,000 2008

Tianjin Fujin Wood Based Panel Co. Ltd. Guangxi Tengxian 54,000 1994

Tianmmen Tianyuan Wood Industry Co. Ltd. Hubei Tianmen 40,000 2007

Tianmmen Tianyuan Wood Industry Co. Ltd. Hubei Xiantao 400,000 2011

Tulihe Wood Based Panel Co. Ltd. Yakeshi Neimenggu 130,000 1983

Wangqing Forestry Bureau Lines 2 Jilin Wangqing 30,000 2000

Wo De Sen Wood Industry Co, Ltd. Lines 2 Guangdong Fushan 110,000 2008

Wugong Wood Based Plant Wugong Shanxi 30,000

Wuzhi Group Co. Ltd. Anhui Hefei 80,000 2010

Xianglin Group Co. Ltd. (Xianglin Group Ltd.) Hunan Xinshao 30,000 2003

Xianglin Group Co. Ltd. Hunan Xianglin Artificial Board Co. Ltd. Guangxi Tengxian 300,000 2011

Xianglin Group Co. Ltd. Hunan Xianglin New Environment Protection Wood Co. Ltd. Hunan Xinshao 30,000

Xinglong (Heilongjiang) MDF Board Co. Ltd. Heilongjiang Bayan 65,000 1998

Xinhhongxing Fiberboard Co. Ltd. MDF Guangdong Boluo 50,000 2010

Xinjiang Bo Lake Wood Based Panel Plant Jiangxi Wuyuan 30,000 1997

Xinjiang Jin Yang Mei Jia Wood Industry Co. Ltd. Lines 2 Xinjiang Changji 360,000 2010

Xinjiang Jin Yang Mei Jia Wood Industry Co. Ltd. Xinjiang Changji 40,000 2005

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Yunnan Chuxiong Wood Based Panel Plant Yunnan Chuxiong 80,000 1997

Yunnan Jinggu Foresty Co. Ltd. Shandong Yucheng 80,000 2004

Yunnan Jinggu Foresty Co. Ltd. Yunnan Jinggu 15,000 1998



Yunnan Ruijiang Fiberboard Co. Ltd. Yunnan Yuanjiang 40,000 2005

Yunnan Simao Hongfa Wood Based Panel Co. Ltd. Shanxi Datong 120,000

Yunnan Yuxi Hongta Group Co. Ltd. (Artificial Board Plant) Yunnan Jinggu 50,000 1996

Zhangzhou Zhong Fu Wood Industry Co. Ltd. Yunnan Jinggu 80,000 2004

Zhangzhou Zhong Fu Woodworking Co. Ltd. (sub of Fujian CFC Industries Company Ltd.) Fujian Fuzhou 220,000 2011

Zhaopin MDF Factory Yunnan Simao 50,000 1997

Zhaoqing Daya wood industry Guangdong 200,000 2007

Zhejiang Golden Sea Communication Facilities Co. Ltd. Yunnan Yuxi 50,000 1998

Zhejiang Huqian Investment Co. Ltd. in 2004 Huqian Forest Industry Technology Co, Ltd. 100,000

Zhejiang Chun’an Huqian Man-made Board Manufacturing Co. Ltd. Zhejiang 100,000

Fujian Guangze Huqian Man-made Board Manufacturing Co. Ltd., Fujian Guangze 100,000

Xinjiang Miquan City Yongnan Compress Boards Plant Xinjiang Aletai 20,000 1998

Xunwu MDF Factory Golden Sea Communication Facilities Co. Ltd. Xinjiang Miquan 100,000 2009

Xuzhou Qianlong Madera Industry Co. Ltd. Jiangsu Xuzhou 100,000 2005

Xuzhou Qianlong Wood Industry Co. Ltd. Xinjiang Miquan 40,000 2004

Xuzhou Shengyang Wood Based Plant Jiangsu Xuzho 20,000 1997

Yangzhou Liyou Wood Based Panel Co. Ltd. Xinjiang Miquan 50,000 2009

Yichang Jintayuan Wood Industry Co. Ltd. 2 lines Sichuan Luzhou 180,000 2008

Yangshan Shunlong Wood Industry Co.Ltd. (Shunlong Wood Ind Group ex Shunlong MDF-board Co.Ltd.) Lines 6

Shunlong MDF-board Co. Ltd. Guangdong Yangshan 200,000

Deqing Shunlong Wood Industry Co. Ltd. Lines 2 Guando Deqing 100,000

Huaiji Shunlong Wood Industry Co.Ltd. Guangdong Huaiji 60,000 2005

Yangshan Wood Industry Co. Ltd. Lines 2 Guangdong Fancun Yangshan 100,000

Yichang Yuanlin Wood Based Panel Co. Ltd. Hebei Yixian 30,000 2000

Yichun Wood Based Panel Plant Hebei Yixian 30,000 1995

Yimei Wood Industry Co. Ltd. Guangdong Huaiji 50,000 2010

YinGang Wood Based Panel Co. Ltd.[Hebei Yingang Wood-based Panels] Hebei Yixian 200,000 2012

YinGang Wood-Based Panel Co. Ltd. Sichuan Nanchong 300,000 2008

YinGang Wood Based Panel Co., Ltd., Hubei Suizhou 300,000 1999

YinGang Wood Based Panel Co. Ltd. MDF & PB on site Sichuan Nanbu 250,000 2010

YinGang Wood Based Panel Co. Ltd. THDF 2-40mm Hebei Zhengding 210,000 2004

YinGang Wood Based Panel Co. Ltd. (Beijing Yuanda Salt Industy Development Co/China National Salt Group) Hebei Zhengding 175,000 1995

Yizhou Board Group Co. Ltd. Hebei Yixian 30,000

Yizhou Board Group Co. Ltd. Hebei Yixian 80,000

Yizhou Board Group Co. Ltd. Lines 2 Hebei Yixian 60,000

Yongfu Longteng Wood Industry Co. Ltd. Guangxi Yongfu 50,000 1998

Yongfu Longteng Wood Industry Co. Ltd. Guangxi Yongfu 200,000 2015

Yuncheng Xinyuan Junda Wood Industry Co. Ltd. ShanXi Yuncheng 80,000 2006

Yuncheng Xinyuan Junda Wood Industry Co. Ltd. ShanXi Yuncheng 120,000 2010

ShanXi Junda Wood Industry Co. Ltd. MDF/HDF Shanxi Xiaxian 150,000 2011

62



Fujian Nanping Huqian Man-made Board Manufacturing Co. Ltd., Fujian Nanping 100,000

Jiangsu Xinyi Huqian Man-made Board Manufacturing Co. Ltd. Jiangsu 100,000

Zhejiang Jiangshan Liren Wood Industry Co.Ltd. (ex State owned Lishui Timber Factory) Lines 2 Zhejiang Lishui 370,000

Zhejiang Lishui Wood Based Panel Co. Ltd. Guangxi Zhaopin 100,000

Zhejiang Yuhang Jinjiang Wood Industry Co. Ltd. Zhejiang Quzhou 15,000 1995

Zhejiang Yuhang Jinjiang Wood Industry Co. Ltd. Zhejiang Wenzhou 30,000 1999

Zhengyanghe Timber Integrated Processing Works Fujian Fuding 50,000 2003

Zhongxin Forest Products Co ., Ltd. (ex Shaanxi Mianxian Wood-Based Panel Cooperation) ShaanXi Mianxian 45,000 1994

Zhongxin Forest Products Co. Ltd. Heilongjiang Haerbin 15,000 1996

Zhongxin Forest Products Co. Ltd. Hubei Shishou 150,000 1999

Zhongxin Forest Products Co. Ltd. Zhejiang Yuhang 80,000 2003

Zhoukou Dahe Forestry Co. Ltd. (100% state owned Henan Investment Group ) MDF/THDF Henan Zhoukou 225,000 2012

TOTAL CHINA FIBREBOARD 53,782,000

63

China PB Listing 2015

China Particleboard Listing 2014-2015 Province City/Town Capacity cu m/yr

Anhui Compax Systems Co. Ltd. Anhui Hefei 30,000

Anhui Kentier Wanhua Artificial Board Co. Ltd. Anhui Chuzhou 60,000

Asia Dekor (Heyuan) Co. Ltd. CVC Asia Pacific Guangdong Huizhou 220,000

ATP (Plantation Timber Products and Asia Dekor merger) Guangdong Huizhou 275,000

Baimalong BML Yunnan Biamalong 220,000

China Machinery Engineering Corp (ex China National Machinery) Hanan Keifeng 335,000

Chongqing Wood Complex Yubei Chongqing 35,000

Chuzhou Particleboard Factory Chuzhou Dezhou 30,000

CMC International Hanan Keifeng 40,000

CNTIC (China National Technical Import & Export Corporation) Beijing Heilongjiang 95,000

Danzhou Xinmufeng Wood Industry Co. Ltd. Hainan Danzhou 95,000

Dare Wood (Dare Sanming) Dare Global Group. Sanming Fujian 800,000

Dawn Forests Wood Industrial Shouguang Co. Ltd. Shandong Shouguang 60,000

Dezhou Dadashen Co. Ltd. Dezhou Dadashen 80,000

Double Wood Industry (Huizhou) Co. Ltd. (Caramel Board industry) Guangdong Huizhou 200,000

Dongfang Wood Industry Co. Ltd. Heilongiang Zhangjiagang 100,000

Dongguan Dacheng Carpentry Mfg Factory (ex Dongguan Shi Dacheng Carpentry Ware Co.Ltd.) Guangdong Dongguan 40,000

Dunhua Particleboard Co. Ltd. Dunhua Ganzhou 30,000

Foshan Nanhai Dachang Wooden Board Co. Ltd. Guangdong Foshan 540,000

Foshan Tianteng Wood Industry Co. Ltd. Guangdong Foshan 450,000

Fujian Furen Wood Industry Co. Ltd. China National Forest Product Ind Corp. Jianou Changji 450,000

Fuzhou Wood-based Panel Plant Fujian Fuzhou 255,000

Gaofeng Wood Based Panel Co. Ltd. (State-owned Forest Network) Guandong Luchan 320,000

Gaofeng Wood Based Panel Co. Ltd. (State-owned Forest Network) Guangxi Nanning 300,000

Genhe City Mengsen Particleboard Co. Ltd. Mengsen Genhe 50,000

Guangdong Shixing Huazhou Wood Co. Ltd. Guangdong Huazhou 250,000

Guangdong Shixing Particleboard Huazhou Wood Co. Ltd. Gangzhou Shixing 200,000

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MDF YEARBOOK 2014/15 64

Guangdong Wulian Wood Industrial Group Co. Ltd. Guangdong Shaoguan 300,000

Guangdong Wulian Wood Industrial Group Co. Ltd. Ningming Chongzuo 250,000

Guangxi Huasheng Wood Industry Co. Ltd. Guangxi Guigang 275,000

Guangxi Fenglin Wood Industry Group Co. Ltd. MDF/HDF Guangxi Nanning 225,000

Guangxi Fenglin Wood Industry Group Co. Ltd. MDF/HDF Fenglin ll Guangdong Huizhou 175,000

Guangxi Sunway Forest Products Industry Co. Ltd. Guangxi Jiamusi 60,000

Guangxi Sunway Forest Products Industry Co. Ltd. Guangxi Shangsi 30,000

Guangxi Xiangsheng Wood Industry Co. Ltd. Ningming Chongzuo 250,000

Guangxi Xiangsheng Wood Industry Co. Ltd. Ningming Chongzuo 360,000

Guangxi Xiangsheng Wood Industry Co. Ltd. Paiyang Shang Group (Govt Owned) Guangxi Chongzuo 220,000

Guangzhou Baiyun Taihe Baishan Qunyi Wooden Products Factory Guangdong Guangzhou 450,000

Guangzhou Huafangzhou Wood Industry Co. Ltd. Guangdong Guangzhou 160,000

Guangzhou Huafangzhou Wood Industry (Group) Co. Ltd. Guangdong Guangzhou 150,000

Guangzhou Shixing Particleboard Factory Co. Ltd. Guangdong Shixing 220,000

Guangzhou Wa Fong Chau Wood (Group) Co. Ltd. Guangdong Guangzhou 100,000

Guizhou Liyuan Wood Industry Co. Ltd. Sansui Guizhou 60,000

Gulin Timber Co. Ltd. Yunnan Gulin 80,000

Hebei Donghai Xuri Wooden Industry Co. Ltd. Jiangxi Ganzhou 150,000

Hebei Golden Sunbird Trading Co. Ltd. Hebei Guzhou 200,000

Hebei Golden Sunbird Trading Co. Ltd. Hebei Guzhou 300,000

Hebei Tongli Wood Co. Ltd. Hebei Wen An 50,000

Hebei Tongli Wood Co. Ltd. Hebei Wen An 50,000

Hebei Yingang Wood Ind. Co. Ltd. Hebei Zhengding 270,000

Heze Fulin Wood Products Co Ltd. Fulin Wood Group Shandong Heze 80,000

Hezhou Fuda Babu Particleboard Babu Hezhou 30,000

Hong Wei Woods Industry Co. Ltd. (Renhua) Group Co. Ltd. Guangdong Huizhou 140,000

Hong Wei Woods Industry Co. Ltd. (Renhua) Group Co. Ltd. Guangdong Huizhou 220,000

Hongze Dongtai Panel Co. Ltd. (Jiangsu East Shield Wood Group) Jiangsu Hongze 70,000

Guangdong Shixing Huazhou Wood Co. Ltd. (Mr Zhang Fenglan owner) Gangzhou Jiangxi 50,000

Guangdong Shixing Huazhou Wood Co. Ltd. Guangdong Shixing 200,000

Huahai Guangxi Rongan Wood Industry Co. Ltd. (Hangzhou Huahai Wood Industry Co. Ltd. part of (Treezo Group) Zhejiang Hangzhou 100,000

Huahai Guangxi Rongan Wood Industry Co. Ltd. Yunnan Shizong 120,000

Hubei Baoyuan Wood Industry Co. Ltd. Guangdong Boluo 70,000

Huizhou Guangtian Wood-Based Panel Co. Ltd. Guangdong Huazhou 250,000

Huizhou Shengyi Wood Industry Co. Ltd. Hunan Changsha 90,000

Hunan Wood Based Panel Plant Co. Ltd. (L ines 2) Inner Mongolia Genhe 30,000

Inner Mongolia Genhe Boarding industry Co. Ltd. Lianyungang Donghai 30,000

Jiangsu DaJiang Wood Group Donghai Co. Ltd. Changshu 50,000

Jiangsu Dongdun Wood Industry Group Jiangsu Siyang, 200,000

Jiangsu Shengmao Wood industry Co. Ltd. Jiangsu Shuyang 150,000

Jiangsu Tongxin Wood Industry Co. Ltd. Guangdong Jieyang 50,000

Jilin Forest Industry Group Co. Ltd. (State holding enterprise) Jilin Baihe 59,000

Jilin Forest Industry Group Co. Ltd. Jilin Fengxian 100,000

Jilin Forest Industry Group Co. Ltd. Jilin Genhe 95,000

Jilin Forest Industry Group Co. Ltd. Jilin Hunijang 50,000

Jilin Forest Industry Group Co. Ltd. Jilin Hunijang 90,000

Jilin Forest Industry Group Co. Ltd. Jilin Hongshi 60,000

65

Jilin Forest Industry Group Co. Ltd. Jilin Fusong 130,000

Jilin Forest Industry Group Co. Ltd. Jiangsu Xuzhou 275,000

Jilin Forest Industry Stock Co. Ltd., Jiangsu Branch Shandong Heze 60,000

Juancheng Chenming Panels Co. Ltd. Shandong Heze 60,000

Yeji Liren Wood Anhui Liu’an Industry Co. Ltd. (Zhejiang Liren Wood Group (ex Lishui Oak) Anhui Liu’an 220,000

Yeji Liren Wood Anhui Liu’an Industry Co. Ltd. (Zhejiang Liren Wood Group (ex Lishui Oak) Anhui Yeji 300,000

Liren Wood Zhejiang Jiangshan Industry Co. Ltd. (ex State owned Lishui Timber Factory) Zhejiang Lishui 220,000

Qingyuan Changqing Particle Board Co Ltd. (Guangzhou Weiheng Machinery Co. Ltd.) Zhejiang Lishui 80,000

Qingyuan Shangxing Wood based panel Co. Ltd. Guangdong Qingyuan 60,000

Yangjiang Shangxing Wood-Based Panel Co. Ltd. Guangdong Yangjiang 40,000

Shandong Heze Fulin Wood Products Co. Ltd. (Fulin Wood Group) Shandong Heze 80,000

Shandong Tongling Green Panel Co. Ltd. Shandong Zouping 100,000

Shandong Xingyang Wood Co. Ltd. Shandong Zouping 30,000

Shenzhen Hoxang Wood Co. Ltd. Guangzhou Shenzhen 100,000

Shenzhen Hoxang Wood Co. Ltd. Guangzhou Shenzhen 100,000

Shouguang Fushi Wood Co. Ltd. Shandong Shouguang 100,000

Shouguang Grandway Co. Ltd. Shandong Shouguang 40,000

Shouguang Huayuan Wood Co. Ltd. Shandong Weifang 50,000

Shouguang Kundu Wood Industry Co. Ltd. Shandong Shouguang 30,000

Shouguang Linhai Wood Materials Co. Ltd. Shandong Shouguang 30,000

Shuangmu Wood Industry (Huizhou) Co. Ltd. Guangdong Boluo 250,000

Shuangmu Wood Industry (Huizhou) Co. Ltd. Guangxi Shangsi 30,000

Shunlong Deqing Wood Industry Co. Ltd. (Shunlong Wood Industry Group) Guangdong Deqing 70,000

Shunlong Huaiji Wood Industry Co. Ltd. Guangdong Huaiji 70,000

Shuyang Yangtse River Wood Industry Co. Ltd. Shandong Shouguang 35,000

Sichuan Guodong Construction Co. Ltd. Lines 2 Guangdong Boluo 150,000

Sichuan Guodong Construction Co. Ltd. Guangyuan Gaoping 100,000

Suihua City Yongshun Particle Board Fty Heilongjiang Suihua 35,000

Suqian Stronger Building Material Co. Ltd. Jiangsu Suqian City 145,000

Tangshan Fortunelinn Wood Industry Co. Ltd. Hebei Qian Xi 100,000

Tangshan Fortunelinn Wood Industry Co. Ltd. Guangyuan Gaoping 100,000

Tangshan Fortunelinn Wood Industry Co. Ltd. Heilongjiang Suihua 35,000

Wa Fong Chau Fenglin Wood (Wa Fong Chau Wood Group) Guangdong Shixing 220,000

Wanhua EcoBoard Jingshou Co. Ltd. Hebei Qian Xi 100,000

Wanhua EcoBoard Jingshou Co. Ltd. Hubei Jinzhou 500,000

Wulian Wood Guangdong Industrial Group Co. Ltd. (owned by Mr Yang Yin Sen) Guandong Shaoguan 300,000

Wulian Wood Guangdong Industrial Group Co. Ltd. Hebei Qian Xi 100,000

Wuqiao Rongtai Wood Industry Co. Ltd. Hebei Wuqiao 200,000

Wuqiao Rongtai Wood Industry Co. Ltd. Shandong Henan 500,000

Xuyi De’er Man-Made Board Co. Ltd. Jiangsu Huaian 300,000

YinGang Wood Based Panel Co. Ltd. (Beijing Yuanda Salt Industty Development Co/China Ntnl Salt Group) Sichuan Nanbu 250,000

YinGang Wood Based Panel Co. Ltd. (CNSIC) MDF & PB on site Sichuan Nanbu 450,000

YinGang Wood Based Panel Co. Ltd. Hebei Wuqiao 450,000

YinGang Zhongyan Wood Based Panel Co. Ltd. Guangxi Rongan 50,000

TOTAL CHINA PB 18,974,000

66



http://stronger20100621.en.made-in-china.com/

67


F E A T U R E A R T I C L E

“We are Turkey’s largest wood panel producer and

the fourth largest wood panel company in Europe,

so our additional investment will help us to grow,”

Haluk Yildiz, CEO and Board Member of Kastamonu

Integrated Wood Industry and Trade Company

(Kastamonu Entegre) told our Associate Editor,

David Hayes. Turkey’s MDF production capacity is

now 5.7mn m³/yr provided by 15 production lines,

according to Yildiz, who added: “Our income growth

rate has been about 25% in US$ terms during

the past 10 years, so sensible growth is important

in future. We look for new forest resources, sales

growth and the market condition.”

Heavy investment by industry leaders in new

MDF and PB plants has raised Turkey’s position in

the world producer rankings during the past three

years as domestic housing construction and growing

exports continue to boost overall demand for wood

panel boards.

“Most of our existing MDF and PB plants are

working at about 100% capacity, so it shows we

were right in making these investments. Up to now

this success has given us the motivation to make

new investments.” commented Yildiz.

According to industry figures, Turkey has

recently overtaken Germany to occupy Europe’s No

1 position as Europe’s largest MDF producer, and is

now the world’s second largest MDF producer after

China. In PB Turkey is now the third largest producer

in Europe after Russia and Germany, and is ranked

No 5 in the world after China, the US, Russia and

Germany. In laminated flooring, Turkey also is a

top three member, ranked as No 2 in Europe after

Germany, and No 3 in the world after Germany

and China.

“Three MDF and three PB board lines have

been installed in the last three years, so there

has been a huge increase in capacity,” said Yildiz.

Kastamonu Entegre’s own MDF capacity in Turkey,

where the company has four lines, now exceeds

1.4mn m³/yr and consequently accounts for

around 25% of Turkey’s installed MDF capacity.

Turkey’s PB capacity also has grown to reach

5.3mn m³/yr provided by 13 production lines, and

three new plants being commissioned between

2012-2014 with a combined capacity of 1.27mn

m³/yr,Yildiz noted.

The three new MDF lines are: Kastamonu

Entegre’s 420,000m³/yr Dieffenbacher line

commissioned in its Adana factory in 2012; a

420,000m³/yr Siempelkamp line that entered

service in the Yildiz Entegre Tarsus plant in the

same year, and more recently the 430,000m³/yr

Siempelkamp line that started up in AGT Antalya’s

factory early in 2014.

Kastamonu Entegre’s own PB production

capacity in Turkey currently stands at 2mn m³/

yr year, provided by five lines, which places the

company with a 39% share of the Turkish PB

market. Three PB lines were installed in Turkey

between 2012-2014 with a total 1.34m³/yr of

combined capacity. These lines were: Yildiz

Entegre’s 540,000m³/yr plant at Akhisar, Kutahya,

and the company’s 345,000m³/yr Mudurnu plant;

also, the Orma 450,000m³/yr plant at Isparta.

In total, the three MDF lines and three PB

lines installed in Turkey during 2012-2014 added

2.62m³/yr to the country’s panel board industry

production capacity which stands at 11m³/yr

including 100,000m³/yr OSB production capacity

provided by two lines.

Turkey’s young and growing population of

76mn people is driving the nation’s residential

housing construction boom which is playing

a major role in lifting domestic demand for

MDF, PB and other construction and interior

furnishing materials.

“There are about 500,000 people getting

married each year, so they need about 250,000

new homes. There are many new office buildings

and shopping malls as well, so everyone needs

‘Kastamonu Integrated Wood Industry and Trade Company’, known locally as Kastamonu Entegre, was established in 1969 in the city of Kastamonu in Turkey’s Black Sea region. Privately owned, Kastamonu Entegre has the organisational structure of a joint stock company, headed by company president Yahya Kigili. The company is 80% owned by family-owned Hayat Holding, which also owns a separate company called Hayat Kimya, which operates in the in consumer goods industry. Kastamonu wants to be a global player and to remain a private company while carrying out its ambitious expansion programme choosing to invest profits rather than pay shareholders via a stock market listing.

Almost 600,000 new homes are built every year due to tourism and as homes for young people who are getting married. It’s also government policy to rebuild old housing units to provide earthquake-safe housing. Haluk Yildiz, CEO of Kastamonu Entegre

Country Profile: TurkeyBY DAVID HAYES ASSOCIATE EDITOR

69

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furniture and new materials,” Yildiz remarked.

“Turkey is also a big tourist destination. Almost 30mn tourists come here

each year, so there are many hotels. They change their furniture almost every

five years, so that’s a big market as well.”

According to Kastamonu Entegre, in Turkey MDF were 2.65m³/yr in 2013

and rose to 2.79m³/yr in 2014; while PB sales were 3.2m³/yr in 2013 and

grew to 3.56m³/yr in 2014. Laminated flooring sales in Turkey were 100m²/

yr in 2013 and reached to 104 m²/yr in 2014. Given the demand growth at

home, Turkish exports of MDF and PB are therefore small.

In 2013, Kastamonu Entegre’s MDF exports were 70,000m³ compared

with 360,000m³ combined for all Turkish producers while the firm’s PB

exports in 2013 were 133,000m³, almost half the combined 285,000m³

exported by all Turkish manufacturers.

As to profits and loss accounts, Kastamonu Entegre is expected to report

a double digit increase in total income for 2014 when its financial results

are announced. The expected strong result will follow a 5% increase in US

Dollar sales in 2013, which reached US$1.1bn, while the company’s Turkish

lira income rose by 15% due to currency fluctuations during the year.

“Our total sales increased in 2013 because of our new Tatarstan MDF

plant in Russia and our new PB plant in Romania, which also started up

in 2013,” Yildiz said. “For 2014 we expect to see a 10% increase in US$

sales and almost a 20% increase in Turkish lira.” Foreign income is growing

as Kastamonu expands its overseas operations. In 2013 some 75% of the

companies total revenue was generated in Turkey while overseas factories

accounted for 25% of overall income. Overseas factory sales are now

expected to reach 30% of total revenue during 2014. “Our target for five

years’ time is 50% of total income generated in Turkey and 50% from

outside Turkey,” Yildiz added.

Adana MDF Plant

Gebze MDF Ve Pongalevha Plant


was acquired from IKEA in January 2015, in this

same location, which will increase total capacity to

1m³/yr in Alabuga Factory.

The Alabuga plant site covers 80 hectares, with

additional land being available to extend the plant

site to cover 100 hectares if needed. Alabuga’s

industrial zone agency offered Kastamonu Entegre

reasonably priced land to build the company’s

new wood panel plant along with electricity and

gas supplies, and railway delivery services.

“Currently our wood resources are coming

from nearby forests but we need the railway line

and rail wagons to bring in chemicals for our plant

and to ship out MDF panels,” Yildiz explained. “For

distances over 500 to 600 km, it’s economical

to use the rail service. Start up is scheduled for

first quarter 2016. Plans also call for a large PB line

and an OSB line to be installed in the Tatarstan

plant, which will become the company’s largest single

manufacturing facility when the PB line enters service.

The Alabuga plant’s Siempelkamp line is

capable of producing MDF in thicknesses ranging

from 4mm to 40mm. The most com-mon MDF

board size produced at the plant measures 2.07

x 2.8 metres. “We will make all MDF thicknesses

but 16mm is the most common,” Yildiz said.

“We have installed a completely integrated plant

with an MDF line, two short cycle presses from

Wemhoener and one impregnation line from Vits;

Exports to nearby Iraq, Iran and North African

countries are important to the company and

these regions lack their own for-estry resources

and consequently rely on imported furniture and

other wood panel-based products of which Turkey

is an important supplier. Kastamonu Entegre

also exports MDF and PB to Europe, South Asia

and Africa.

“At this moment we are also selling our boards

to Poland, CIS countries and the Russian Federation,”

Yildiz said. “Also, we sell door skins to India, Pakistan,

France and Africa, so we cover countries with about

1.5 bn total population.”

The start up of the Tatarstan plant has lifted

Kastamonu Entegre’s total combined MDF and PB

production capacity to around 4.6mn m³/yr.

“We can become No 3 in Europe in future and

rank as No 5 in the world for MDF and PB,” Yildiz

said. “Our target is US$2bn turnover in 2021 with

MDF and PB each accounting for about 50% of

revenue. MDF probably will be slightly higher in price

because of flooring sales, but maybe less than PB in

cubic metre output.”

In addition to the company’s domestic Adana

MDF plant, which opened in 2012, Kastamonu

Entegre’s 560,000m³/yr Romanian PB plant started

up at the end of 2012 along with the firm’s 19.5 mn

pieces per year door skin production line in Romania.

Apart from supplying the Romanian market, the door

skin production line also exports to neighbouring

Greece, the Ukraine, Hungary, Macedonia, Kosovo,

Moldova, Serbia and Bosnia.

“We have a one third share of the Romanian PB

market, but we do not ship to Bulgaria as we have a

plant there,” said Yildiz. “Demand in Turkey for MDF

is good, although this is unexpected as after the big

investment, which was made in the three new MDF

plants, MDF supply in Turkey now exceeds demand.

“One reason why MDF demand here is good is

that there were a lot of European wooden flooring

imports before, but the Turkish lira is down in value

and so flooring imports have now decreased.”

Tatarstan plant capacity is almost 20% of the Russian Federation’s MDF capacity,

Meanwhile, Kastamonu Entegre recently

commissioned a large new MDF plant in Alabuga a

small city in Tatarstan with one of the most highly

regarded industrial zones in the Russian Federation’s

Volga region. “This will be one of the biggest

industrial zones in the Russian Federation so they

will need homes for employees and other buildings.

This area will grow very fast,” Yildiz said. “It’s our first

investment in the Russian Federation,” Yildiz noted.

“Our factory site is only about 10km from the Volga

river and there is a railway line connection, so we can

reach many places from there. “We spent five years

to check and prepare for our Tatarstan investment.

“Our factories have to be near to wood

supplies and the MDF market. Timber supplies will

be provided to the factory by the government of

Tatarstan which is renting forest land under a 49

year lease contract from the Russian Federation

Ministry of Forestry to supply the plant. “Tatarstan

government is managing the forest for us. All forest

belongs to the Russian Federation,” Yildiz said. “The

timber there is a mixture of birch, pine, poplar and

Linden trees.”

The MDF market in Tatarstan is at an early stage.

It’s the central government’s idea to support the

furniture industry in the nearby area. We support

the development of this, but we will send most of

our MDF outside of Tatarstan. “Our factory is about

1,000km east of Moscow. Our Tatarstan plant

capacity is almost 20% of the Russian Federation’s

MDF capacity, so we can cover Moscow as well,”

Yildiz said. Kastamonu has installed a 2.8 metres

wide, 55 metres long Siempelkamp continuous

press of 565,000m³/yr, rated capacity, which

currently makes it Europe’s biggest MDF line.

“We spent about US$260mn on this factory.

It’s our biggest Greenfield investment in production

capacity and cost,” Yildiz said. “We chose to invest

in Tatarstan as we have a good MDF and PB market

share in Turkey.

Kastamonu will install a second MDF line which

When the new Tatarstan MDF and PB factory investments are included, the company has grown to become the fourth largest manufacturer of MDF and PB in Europe and is now ranked No 8 in the world.

After starting panel board production in Turkey, we went to Bulgaria and then to Romania to invest, so our fourth step is to invest in the Russian Federation.

There are two ways to grow – go out and get more market share; also, go out for more raw materials. The company will expand its operations in surrounding countries with natural timber resources for the rest of the decade.

also, one laminate flooring line from Homark, and a resin plant.

“Our target is to use 30% of the MDF produced for flooring and 70% for

MDF boards and melamine with MDF panels.”

In addition to producing MDF, the company’s plan is to order a PB line

at the end of 2015 capable of producing 950,000m³/yr. “It will be a very

big line. Alabuga will be the biggest board making location for Kastamonu

Entegre,” Yildiz said. “The PB investment will be about US$150mn as we

have already made the infrastructure investment for the MDF production line.

This is sufficient for the PB line as well. The PB will go to the same market

and customers.”

In addition, plans call for a 480,000m³/yr OSB line to start up at the

Alabua plant in 2019 along with a 12.5mn door skins per year line the

same year.

Kastamonu Entegre has chosen to install a high capacity PB line as the

infrastructure investment cost to provide water, electricity, waste treatment

facilities and railway cargo access would be large, Yildiz explained, whether a

high capacity or a small scale panel board plant is built at the site.

As part of its current 10 year business development plan, Kastamonu

has set a target of setting up MDF production plants in at least three separate

locations in the Russian Federation. In addition to Tatarstan, the company

owns land in the Krasno area near Sochi where the 2014 Winter Olympic

Games were held. Yildiz added that a site for a third factory has been chosen

about 200km south of Moscow. A fourth factory could also be constructed

in the Russian Federation in future, possibly at a location north of Moscow.

“Building a second plant in Russia depends on how the market improves.

We expect to start site preparation in 2017 near Moscow because panel

board market demand will grow there,” Yildiz said.

“Our second factory will be a repeat of the Tatarstan factory with the

same production capacity and producing the same width MDF board though

the length of the panels could be different. “We expect the second Russian

factory will start production in 2019. We have chosen a 2019 start up for

technical and financial reasons.

“It’s still too early to say when our third Russian MDF factory will open.”

Asked about future investments planned for the company’s current 10 year

long term business development programme, Yildiz noted that Kastamonu

Entegre is looking to install MDF lines of various capacities in Turkey, Romania

and Bulgaria.

Plans for a new MDF plant in Turkey will involve installing a new MDF

line to serve the Aegean region in 2017 with most of the production being

targeted at the domestic market.

“We are planning to open an MDF plant in Denizli in the Aegean area as

there are good timber sources and a good market nearby,” Yildiz explained.

“Currently our Gebze MDF plant covers Marmara, Adana in the south, and

eastern Turkey, while our Kastamonu MDF plant covers northern Turkey and

mid-Antalya; so our proposed Denizli plant will be to cover the Aegean re-

gion. The plant will be about 360,000m³/yr in capacity.”

Investment plans for Turkey also include building a new PB plant to

replace the firm’s old existing plant in Kastamonu, which is located away from

the city’s modern industrial zone.

CONTINUED ON PAGE 75Schelling Anlagenbau GmbH

6858 Schwarzach/AustriaT +43 5572 396-0

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Materials & Products:Recyclable MDF

T E C H N O L O G Y & P R O D U C T D E V E L O P M E N T

Biodegradable and recyclable forms of composite materials have been in the

industry headlines for several years, with the automobile industry having been

the most forward development sector, followed by home products. The main

driving force behind bio-materials processing is being leveraged by a growingly

environmentally conscious society in the mature economy countries, based on

the benefit of being able to recycle the end-product.

It is clear that bio-fibre-based materials suitable for use in PB, MDF,HDF,

etc., can play an important role in the long-term and progress has been

made at certain plants, but the required advance in processing technol-

ogy has not yet met the practical commercial requirements of high-volume,

low-cost production.

MDF cannot be recycled in its current form and it either has to be inciner-

ated, or dumped as landfill. On-going investigation into alternative and compat-

ible composite fibre-based materials has produced some interesting results,

but to-date have lacked commercial take-up.

A wood-based product similar to MDF that uses a potato starch is a recent

development by Professor Andrew Abbott and his team at the Department of

Chemistry at the UK’s University of Leicester. Large volumes of MDF have short

term use in the retail sector for example and an opportunity to recycle or pass

to compost represents a significant benefit. Professor Abbott’s material devel-

opment is thus claimed to be fully recyclable, fully biodegradable, easier to

produce and to machine-finish compared with conventional MDF panel board.

Cabinet made from recycled MDF.

73

IMAL, as experts in resination systems for over 40 years, has recently designed

the Hi-Jet system, which sprays resin into the blow line at over 100 bar to

achieve perfect distribution over the fibres. Early research began with micro-

scope analysis of the resin crystals from which we discovered that a reduction

in the size of the crystals used on line achieves much better resin distribution

over the fibres. Consequently, a lower resin load is required to achieve the

same desired board properties.

The IMAL design sprayer nozzles are the only ones of their kind on the

market. Our system does not mix the resin with steam, but adds the steam in

small quantities into the blow line through separate nozzles, mounted opposite

the glue nozzles, to help open up the fibres and hence achieve a better distri-

bution. The glue is sprayed through special IMAL design sprayers that keep the

pressure constant, even if flow rate varies. This is extremely important, because

if the production line is to run at a different rate due to a change in panel thick-

ness, and the resin flow rate rises from 10-50kg per minute, then our nozzles

keep the pressure at 100 bar, or at the set pressure.

Another big benefit of injecting steam separately is the lack of any need

to constantly open and close the blow valve. In the IMAL system, the blow

valve is opened completely and then the steam is dosed to maintain the coun-

ter pressure at the refiner. Basically, the amount of steam applied is inversely

proportional to fibre flow rate, thus the more fibre we have, the less steam is

applied and vice versa when fibre flow rate falls, steam consumption will rise.

The system is currently producing excellent results on 63 panel production

facilities, 40 of which produce MDF.

Another significant innovation is the Dynasteam, which injects steam into

the mat before entering the press without creating damp spots. Independent

steam distribution areas on each of the two sides, also vary the amount

of steam across the board width. There are no thickness limits with the

Dynasteam, which can accommodate 2-50mm thick panels. Recently, steam

on a PB line increased line speed by over 20%. It is also possible on all MDF

lines to achieve a 10-15% increase, which can be even higher when produc-

ing thick panels. On a large MDF line in Northern Europe, where for various

reasons, the customer was not interested in running the line faster after putting

the Dynasteam into operation, other production benefits also became evident

because when steam is injected into the mat, the core reaches 100°C, much

earlier than it would normally. Thus, after applying steam on the line, the inter-

nal bond value rose by 15% and the operator began lowering the resin load

to return to the IB value required for production. This drop in resin addition

automatically leads to resin savings, which has to be an on-going cost-effective

production benefit.

Resination SystemsCONTRIBUTION FROM IMAL


T E C H N O L O G Y & P R O D U C T D E V E L O P M E N T

Definitions can sometimes cause confusion as materials and products change over a period of time, but the basic descriptions remain the same, or worse become compromised. This situation currently applies within the generic wood-based panels category of materials. One particular aspect arises in the growing use of non-wood based fibrous sources such as Rubber trees, Bamboo and the use of recycled and secondary ligno-cellulose and non-cellulosic sources.

Panel Products Terminology

Rather than enter into a discursive over the problem of descriptions

and misunderstandings that arise in translation (as noted in the sec-

tion on Global Production Capacity Figures in Contention) the follow-

ing FAO definitions serve as a reminder of current terminology used

in the changing material and product-based panels industry sectors,

with which we are concerned in this publication. For a complete

description and breakdown of all panel products please refer to

ht tp ://www.carbeck .org /pdfs/FPL_Wood_Handbook _Ch10.pdf

The generic term ‘wood-based panels’ applies to a product category

that is an aggregate comprising: Plywood, Particleboard, Fibreboard and

Veneer sheets, which are measured in cubic metres of solid volume.

FIBERBOARD (FB) panel manufactured from fibres of wood or other ligno-

cellulosic materials with the primary bond deriving from the felting of the

fibres and their inherent adhesive properties (although bonding materials

and/or additives may be added in the manufacturing process). It includes

fibreboard panels that are flat-pressed and moulded fibreboard products.

It is an aggregate comprising hardboard, medium density fibreboard

(MDF) and insulation board. It is reported in cubic metres solid volume.

Fiberboard and Particleboard differ mainly by their physical configuration of

the comminuted material. FB exploits the inherent strength of wood fibres

to a greater extent than PB. FB is normally classified by its density and can

be made by either dry or wet processes. Dry processes are applicable to

boards with high density (hardboard) and medium density (MDF). Wet

processes are applicable to both high-density hardboard and low-density

insulation board.

HARDBOARD (HB) Wet-process fibreboard of a density exceeding 0.8 g/

cm3. It excludes similar products made from pieces of wood, wood flour or

other ligno-cellulosic material where additional binders are required to make

the panel and with those panels made of gypsum or other mineral material.

MEDIUM DENSITY FIBERBOARD (MDF) Dry-process f ibreboard.

When density exceeds 0.8 g/cm3, it may also be referred to as

“high-density f ibreboard” (HDF).

OTHER FIBERBOARD (MDF) Wet-process f ibreboard of a density not

exceeding 0.8 g/cm3. This includes medium board and sof tboard

(also known as insulation board).

PARTICLEBOARD (PB) PB grew from a need to dispose of large

volumes of sawdust, planer shavings, mill residues and other

relatively homogeneous waste materials produced by other wood

industries. PB is made by mechanically reducing the material into

small par ticles, applying adhesive and consolidating a loose mat

formation. Reducing lingo-cellulosic materials to par ticles requires

less energy than reducing the same material into f ibers. However,

PB is generally not as strong as f iberboard because the fibrous

nature of ligno-cellulosics is not exploited as well. PB is typically

made in three layers. The sur faces of the board consist of f ine

wood par ticles and the core is made from coarser material. The

smooth face assists laminating, overlaying, painting, or veneering.

PB is also made from agricultural residues. Low-density insulating

or sound absorbing PB is made from Kenaf core or jute stick. Low-,

medium-, and high-density panels can be produced with cereal

straw, as used in Nor th America. Rice husks are used in medium-

and high-density products in the Middle East. Par ticleboard is

used for furniture cores, where it is typically overlaid with other

materials for decorative purposes. Thin panels can be used as a

panelling substrate. As most applications are interior, PB is usually

bonded with a UF resin, but PF and MF resins are used to impar t

moisture resistance.

THERMOPLASTIC COMPOSITES Ligno-cellulousic materials

plus thermoset ting polymeric materials e.g., phenol- or urea-

formaldehyde have long been used in the production of

composites. Ligno-cellulosics plus thermoplastics are a more recent

development. Thermoplastics sof ten when heated and harden

when cooled and include polypropylene, polystyrene, vinyls,

and low- and high-density polyethylene. Wood flour from post-

industrial materials such as planer shavings, chips, and sawdust

is readily available as a f iller in thermoplastic composites. Wood

fibers, although more dif f icult to process compared with wood

flour, can lead to superior composite proper ties and act more as

a reinforcement than as a f iller. Other additive materials can be

used to improve bonding between the thermoplastic and wood

component as for example, coupling agents, product per formance

(impact modifiers, UV stabilizers, f lame retardants) and

processing lubricants.

SPECIALITY COMPOSITES Special-purpose composites are

produced to obtain desirable proper ties like water resistance,

mechanical strength, acidity control, and decay and insect

resistance. Overlays and veneers can also be added to enhance

both structural proper ties and appearance.

HYBRID MATERIALS As the name implies, hybrid panel materials

can be made from a variety of like and non-like, f ibrous, non-fibrous

materials, polymers, etc., to specif ically suit the end-use application

of a par ticular product. There are a number of varieties of which

a good example is the recent Accsys Technologies plc acetylation

of wood chips, and par ticles. The process relates to schoolboys

hardening conkers in vinegar, but Accsys has worked out how to

do it on a scale that enables solid wood (Accoya®) and wood

elements (Tricoya®) to be used as environmentally sustainable

construction materials.

75

Sandvik’s relationship with the extended timber industry stretches back well

over a century and the company has been the pioneering force behind many

of the most significant innovations, from the development of the double belt

press to the introduction of steel belt grades that have brought new levels of

productivity to the industry.

The company continues to focus on producer’s ability to achieve pre-

mium product quality and maximize productivity. A good example includes

the means to achieve “invisible” repairs and tighter tolerances for welds in

regard to thickness and flatness deviation. It is the company’s firm belief

that quality and productivity will be key differentiating factors in an increas-

ingly global market. Sandvik has therefore announced the roll-out of a global

service, which will see more than a 50% increase in the number of service

engineers available to support customers worldwide.

Joerg Kaufmann, Global Manager for the WBP-sector noted that these

teams can: “….speak the local language, focus on customers’ process and

that service isn’t the only area to benefit from investment and operational

improvements. “Our Press Belt Department is currently running the biggest

improvement project ever. We are seeking the input of OEMs, end users and

others to drive improvements stakeholders are looking for in terms of steel

belt materials, belt performance, deliveries and other efficiencies.”

“One other advantage for customers is the availability of Sandvik’s steel

laboratory in Sandviken, Sweden, the largest facility of its kind in Northern

Europe. Sandvik has 50,000 employees and is active in 130 countries. To be

a part of a group of this size and stability serves as an insurance deal for most

of our customers,” says Kaufmann.

“We have been able to support our WBP-customers from the very

first and we are putting the investment in place to make sure this remains

the case.”

Sandvik Builds To Meet FutureDemandCONTRIBUTION FROM SANDVIK

CONTINUED FROM PAGE 71

“This is part of our 10 year plan – we build a new PB plant about 500,000m³/

yr in size to open in three to four years’ time. We will close the existing

plant which is about 40 years old,” Yildiz said. “Our new PB plant will be in

Kastamonu industrial zone along with our new MDF line there.”

Investment plans for Bulgaria, meanwhile, involve building an MDF plant

capable of producing about 480,000m³/yr in board thicknesses from 4mm

up to 40mm thick. “We plan to start this plant up in 2018. It will use local

timber supplies,” Yildiz said.

“Bulgaria already exports more than this new plant’s timber requirement to

Turkey. We will build the plant at the same location as our PB plant in Bulgaria.

“MDF from this plant will be for Bulgaria and for export to Turkey, Greece and the

Balkans region.”

Plans for Romania, meanwhile, are expected to involve building a thin

board MDF plant capable of producing about 180,000m³/yr. “We have no

schedule yet for this project; it could be opened in 2018 or 2020,” Yildiz said.

“The factory for the MDF line is built and ready. The MDF will be for local sale

and to export to the Balkans region.”

In addition to new facilities planned for Turkey, the Russian Federation,

Bulgaria and Romania, Kastamonu Entegre’s 10 year development plan

includes two projects in Bosnia – a paper mill and a 250,000m³/yr MDF

plant to supply the domestic market and the surrounding Balkans region. The

company also has plans to build an MDF and PB plant in the Ukraine though

the timing will depend on political developments in the country.

“There are no dates yet; no one knows what will happen in the Ukraine,”

Yildiz said. “We have a location west of Kiev. There are a lot of timber

resources in the Ukraine; they export a lot of timber to Turkey.”

Kastamonu Entegre had previously considered buying the existing

260,000m³/yr Art Progress MDF plant in the Ukraine, but terminated its

interest in 2011 to concentrate on its Tatarstan wood panel board scheme.

The company plans to install an MDF line capable of producing about

480,000m³/yr in the Ukraine along with a PB line of 600,000-700,000m³/

yr capacity. Kastamonu will carry out market research first before deciding

whether to install an MDF line or a PB line first when conditions are suitable

for the project to proceed.

“Now we have a 30% share of the Turkish wood panel market, so it’s

difficult to gain more share,” Yildiz said.

“We believe in our sector. We want to be active in emerging markets and

active in locations that are connected to each other – all our investments

are in neighbouring countries. “We could look further afield for other

opportunities in the long term future. “Maybe in 10 years’ time we will look at

India, Pakistan, Africa and the United States, but we will grow with low risk.”


M A R K E T S

While further growth in panel consumption and production are expected

through to at least the mid-decade, the pace of growth is likely to slow further

as the construction and furniture markets both become cyclical as China’s

economy matures.

China’s consistent economic expansion equates with a linear growth in

its demand for wood-based panels. However, as in all developed economies,

at some point in the business cycle there will be changes in demand in the

construction markets and personal consumption patterns. At that point, panel

consumption will experience periods of decline. The search for cost-effective

alternative end-use materials will also drive product displacement and re-

placement usage, plus an increase in demand between materials e.g., from

plywood to MDF/HDF, or to a non-wood or hybrid material. Some domestic

panel producers will inevitably face competition from better quality or differ-

ent panel material combinations.

Firstly, fibre is expensive; resin is not cheap; and labour will become more

expensive. What effect will this have on China’s producers? Certainly there

will be an increase in M&A in mainland China and this may involve investment

from other areas. This will coincide with some demise among smaller and

less efficient producers who operate out-dated manufacturing plants. China’s

plywood manufacturers have struggled with issues of quality especially with

exports, plus an availability of legal log supplies to manufacture high qual-

ity face veneers. While there may not be a significant rise in China’s panel

imports during the rest of the decade, the potential exists for more offshore

supplies to penetrate China’s panel markets from lower production cost

countries in which some Chinese high-volume panel producer companies

are already investing.

At the same time there is a focus by some Chinese companies in in-

vesting in the domestic production of higher-value panel materials and/or

converted end products directed towards a growingly more discriminating

consumer sector. Also, some domestic Chinese panel manufacturers will face

the pass down effect of rising direct imports of panels, or of manufactured

products, which incorporate panels in their construction (e.g., furniture). If

the recent CFPA/RISI estimates of an increase in production are correct, then

the inevitable related increase in business sustainability pressures on global

timber supplies and prices will apply for many years to come.

The word on the street from an aspect of panel raw materials and panel

manufacture is that all eyes should concentrate on China and Russia with

regard to a potential ‘supply-crunch’ that could drastically impact trade flows

in export markets. The growing commercial and environmental pressures that

currently face the forest products industry sectors are such that the smaller

and less efficient panel operators will face bankruptcy as the preferences

exerted by consumers and OEMs for one material over another will lever-

age a transition between existing materials e.g., plywood to MDF/HDF, or

possibly an alternative hybrid. Such a movement will support new product

development in accordance with the current position that panel materials

have on the life-cycle curve, as observed else-where in this edition of the

MDF Yearbook.

If China were to be involved in a ‘supply crunch, it could dramatically ef-

fect sub-regional import sustainability. Not only this, but as China responds to

the need to create a domestic consumer-led market, while avoiding American

style superficial materialism, it will also have to cope with a cultural develop-

ment that will set Chinese business apart from most of the world. Evidence

of this has existed all along, but has been side-lined by consistent economic

expansion, which explains why there is a continuing need for the presence of

’ex-patriots’ in China and many Asian countries.

The gap between Chinese business management’s understanding of

western business ethics and culture is enormous. In almost every respect

western business culture is completely different from the way business is

conducted in mainland China. This situation will become more problem-

atical as the Chinese government encourages growth in multinational-based

companies and related brand image culture, at the same time that it seeks

to leverage good financial returns from its massive US dollar holdings. The

Chinese hold a narrow view of marketing and the decision-making process

is qualitatively different in China, largely because of organisational hierarchy.

based on a fundamental principle of mistrust among Chinese executives

as well as foreigners. This presents a heavy burden on an international

business scene.

Given the CFPA (Chinese Construction & Furniture Production

Association) forecast assumptions about China’s GDP growth in industrial

production, furniture production, and housing, then the CFPA has projected

further increases in total panel production in each of the years 2014 and

2015. From 151mn m³ in 2013, total panel production is forecast to climb

7% to 162mn m³ in 2014 and to rise by another 8% in 2015 to 175mn m³.

Pro-duction in 2015 will thus be 24% above 2012 and twice the level of

China’s Move to Consumer-led Economy Raises Questions

China’s double-digit economic growth during the past 15 years is slowing in direct accordance with standard historic patterns experienced by developing country economies. The bottom line is the pass-down effect that economic growth plays in improving the general standard of living among a rapidly-growing middle class that focuses more on the affordable quality-of-life. This is expressed through higher-quality housing and increased spending on better quality food, plus consumer goods such as furniture and electronics, as well as more leisure time, resulting in vacations and second homes.

China does not have a clear long-term competitive advantage in manufacturing lumber and panels.

2008. Plywood will remain the largest panel product category, with a 42%

share of total panel output in 2015 (73mn m³ - a 26% jump over 2012),

followed by MDF/HDF with a 35% share (60mn m³, 25% above 2012).

A related pass-down effect of the noted cultural divide at corporate

business and individual levels is the reliability of business, economic and

trade statistics. For example, the accuracy of information reported by the

Chinese State Forestry Administration, (SFA) has been in doubt for some

years and the SFA has acknowledged problems and is expected to publish

revised data at some point, according to US consultants RISI and the (CFPA).

Previously announced data has accordingly been downwardly adjusted

by RISI and CFPA by an amount of 33% for each of the years 2011-2012.

The largest downgrade was made to reported plywood quantities.

Fibre/wood-based panels represent about 78% of China’s

combined lumber and generic panel production and the CFPAF has indi-

cated that data panel production in China in 2013 would be 7.5% higher

than in 2012 than the level reported. Actual production levels are how-

ever not necessarily easy to document. Nevertheless, the MDF Yearbook’s

editors are well aware that the ‘accuracy’ of engineered (rated) capac-

ity data relating to fibreboard and particleboard plants has been over or

under exaggerated by companies and third party sources for various

economic, commercial and financial reasons. The overall situation is

however fairly clear as portrayed in the accompanying charts that are

considered to reflect as accurate a profile of the FB/PB panel sectors that

currently can be expected.

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Worldwide.


M A R K E T S

Macroeconomic & RegionalEconomies’ Profiles

The Global economy expanded by an estimated 2.6% in 2014, and is projected

to expand by 3% in 2015, 3.3% in 2016 and 3.2 % in 2017. Developing coun-

tries’ economies grew by 4.4% in 2014 and are expected to reach 4.8% during

2015, 5.3% and 5.4% in 2016 and 2017, respectively. However, global economic

recovery is seen to remain fragile and is reliant on increasingly divergent trends

with significant implications for global growth.

“Worryingly, the stalled recovery in some high-income economies and even

some middle-income countries may be a symptom of deeper structural malaise,”

noted Kaushik Basu, World Bank Chief Economist and Senior Vice President. “As

population growth has slowed in many countries, the pool of younger workers is

smaller, putting strains on productivity. But the lower oil price, which is expected

to persist through 2015, is lowering inflation worldwide and is likely to delay

interest rate hikes in rich countries. This creates a window of opportunity for

oil-importing countries, such as China and India; we expect India’s growth to

rise to 7 % by 2016. What is critical is for nations to use this window to usher

in fiscal and structural reforms, which can boost long-run growth and inclusive

development” said Basu.

Economic prospects focus on the collapse in oil prices in the second half of

2014, which will leverage winners and losers and could significantly reduce infla-

tionary pressures and improve current account and fiscal balances in oil-import

reliant developing countries, e.g., China. The extent to which low oil prices will

strain balance sheets in oil-producing countries will also be a determining factor.

Likewise, persistently weak global trade is a determining factor linked to financial

market volatility as interest rates in major economies rise on varying timelines.

High-income countries as a group are expected to face a modest GDP rise of

2.2% this year (from 1.8% in 2014) and by about 2.3% in 2016-17. US expan-

sion is expected to accelerate to 3.2% this year (from 2.4 percent last year),

before moderating to 3% and 2.4% in 2016 and 2017, respectively. In the Euro

Area, growth is put at 1.1% in 2015 (0.8% in 2014), rising to 1.6% in 2016-17.

In Japan, growth will rise to 1.2% in 2015 (0.2 % in 2014) and 1.6% in 2016.

Activity in the US has been growing, but recovery has been weak in the

Euro Area and Japan as legacies of the financial crisis linger. China is undergoing

a carefully managed slowdown within a still-robust GDP growth of 7.1% in 2015

(7.4% in 2014), 7% in 2016 and 6.9% in 2017.

The above scenario adds up to the likelihood, if not certainty, that trade

flows and supply-chains are likely to remain weak at least during the current

year. Global trade has slowed significantly to around 4% during 2013-2014, at

almost half pre-crisis annual growth at 7%. The slowdown partly reflects demand

weakness and seemingly a lower responsiveness to world trade growth. Thus,

commodity prices are expected to remain level and ‘soft’ in 2015.

The accompanying charts present an awareness and overview of national

and regional economies‘ forecast development.

A World Bank report on Global Economic Prospects in January 2015 noted that the year 2014 was another disappointment in terms of economy development in the mature economy nations, although developing regions “should see an uptick in growth this year, boosted in part by soft oil prices, a stronger U.S. economy, continued low global interest rates, and receding domestic headwinds in several large emerging markets.”

79

Price Trend: Long term Regional Export & Domestic


Construction Growth Change vs MDF/PB Capacity in North America & Europe

M A R K E T S

Pointing to the Asian economies’ more relaxed tax regimes, it has been noted

that if western governments do not adjust their policies to match those of the

competitive economies in the east, there is a risk that the rest of Europe, includ-

ing countries outside the euro zone, such as the UK, could slide in the same way

that Greece has, first into stagnation and then into economic collapse. The level

of competitive challenge arising from Asia’s industrialisation and its exertion on

Western economies, has been especially strong, because of the pace of change

and the shift in life-styles in the emerging economy countries.

In China the property frenzy continues at a slightly slower pace and may

advance at an average growth of 8% during 2015, with the selling price of new

homes rising by 9% year on year. Overall rising consumer demand for interior

fitments, white goods and furniture for new homes, along with additions and

upgrades will present the largest increase in demand for PB, plus a major

contribution to a higher consumption of MDF/HDF. Nominal price peaks over

the next two to three years will almost certainly arise. In inflation-adjusted

terms, prices between 2013-2015 may however not reach earlier levels. On

a European level, as excess manufacturing capacity in PB and MDF/HDF falls,

then price rises are to be expected, especially in PB, where low profitability

has existed for a number of years.

The declining ‘economic’ situation of the panels industry for several

years prior to 2014 has marked an ongoing extension of previous years’ weak

performance and rising levels of corporate indebtedness within the industry.

This has directly and indirectly caused some plant closures, some company

internal restructure, a focus on M&A and divisional company plant sales, and

similar financial/commercial arrangements, notes KPMG. It has also leveraged

a general refocus by companies on expanding, or moving into PB, as an

alternative, or an additional material in which sub-continental installed capac-

ity is at a lower level compared with fibreboard.

Demand for PB is forecast to increase during the next five years and

particularly in countries such as Malaysia, Turkey, Vietnam, Brazil, Russia,

Indonesia, and India. These regions are already advancing with new manu-

facturing facilities to meet anticipated local consumer demand. Accordingly,

the combined global consumption of FB & PB panel materials based on a

consensus at the New Delhi World Consultation on Wood-based Panels in

February 2015 indicated that wood-based panels consumption was likely to

rise to between 225-310mn m³ by 2017 if major industrial nations recover

from the current economic recession within a year or so and resume the

growth levels of the 1960s and early 1970s.

However, the realism behind projected demand figures of such magni-

tude would be ultra-dependent on many internal and external influences on

company future viability in what has come to be viewed as a growingly ‘fickle’

global market place. Interestingly, the current stage of development in the

product life-cycle demand curve in the FB sector, has seemingly reached a

point of sufficient interest to attract investment equity and future’s investors.

As to the suggestion that overall MDF/PB consumption could reach a

level of 225-310 mn m³ by 2017, such a level would represent a staggering

increase based on current (2014-2015) aggregated engineered achievable

production capacity, which stands at 124mn m³ on a world-wide MDF scale

and 120mn m³ of PB. Such a rise in consumption over such a short time-

scale would be unprecedented and based on current observable economic

development strength, must be viewed as unachievable in practical terms if

only from an aspect of raw materials availability.

Economic recovery and expanding urbanisation is supporting demand for infrastructure in its widest forms almost everywhere, although 75% of management respondents to a KPMG global survey, indicated that it could take between two and five years to see a real industry upswing. Interestingly, 71% of management consider that growth will be organic, rather than through M&A. Yet the current stage of development in the product life-cycle demand curve in the FB sector, has begun to attract investment equity and future’s investors. Such firms have been waiting in the financial side lines and recently have begun to acquire equity holdings in some of the sounder status panel producer companies.


83

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Adv. MDF Yearbook 2015.indd 1 2/13/2015 2:48:27 PM

India Panel Industryat a Crucial Stage

Mr. Sajjan Bhajanka, President, Federation of Indian Plywood and Panel

Industries has said that “Most of the wood based industries in general and

plywood and panel industries in particular are passing through a very crucial

stage for their existence.”

“Raw material insecurity, misperception about the wood-based panel

industries in the mind of policy makers on one hand and continuous increas-

ing demand for the panel products on the other hand has brought this sector

to crossroad.”

“In a country like ours (India) meeting consumer needs for wood-based

panel products in a sustainable manner becomes a much more important

issue and challenging task where still more than half of the wood produced

is used as firewood. “The panel industry embraces plywood, veneer, particle-

board and MDF manufacturers.”

“The demand projections for wood raw materials for these products has

been estimated to be nearly 30mn m³ by 2020. “The government policy

through the liberalisation of the import of logs is not considered a long term

viable solution to support growth of the industry and also cannot be taken

into consideration for long term investment decisions.”

The Indian wood-based industry today consists of more than 2,000 mills

of various capacities and supports the livelihood of nearly 6 million people.

A serious drawback in the planned development of raising plantations to meet

the requirements is the lack of integration between forestry and the wood-

based industry sector, which has resulted in diffused programmes of planning

and development.” A document containing the following points was handed

over by the Chairman of FIPPI, to the Honourable Minister of Environment,

Government policy relating to the import of logs is not considered a long term viable solution to support growth of the (panels) industry nor long term investment decisions.


Forests and Climate Change on the occasion of the latest Annual General

Meeting of IPIRTI held in Delhi.”

Suggested measures:Increase investments in plantations through the involvement of the private

sector and support from financial institutions and simplifying the procedures

for the sanction of financial support to the farmers and tree growers.

Devise a strategy for improving productivity of agro-forestry and social

forestry on degraded lands through technology based plantations and making

available institutional credit on softer terms and promoting involvement of

private sector in tree plantation activities.

Remove restrictions on felling, land holdings, land tenure for tree cultiva-

tion and timber transit rules and marketing to improve the efficiency of wood

production and better price realisation by the growers as well as increased

supply for the Industry. Market mechanism should be developed to ensure

reasonable prices to private timber producers.

The Federation of Plywood and Panel Industries has noted that the fibre-

based panels industry faces a survival risk as log supplies become tighter.

As a consequence some of the larger plywood producers have established

manufacturing plants in Myanmar and Malaysia, with more companies pre-

paring to follow suit.

India: Rising Demand for Panel BoardsIn keeping with its election manifesto the new Government in India has

begun implementing stalled infrastructure, power generation, road building,

port and mining projects. This has invigorated business sentiment and as a

result the weakness in the wood panel sector during the past few years is

now coming to life.

India’s annual fibre-based panels market is estimated at Rs.200bn

comprising 75% plywood and 25% PB and MDF. At present, domestically

manufactured panels compete with imported thick plywood prices, which

have been rising.

Local manufacturers have been improving the surface quality of boards

and are producing higher density panels to permit accurate routing. Indian

manufacturers are also supplying laminated panels in a variety of designs and

colours to compete with imported surfaced plywood.

Domestic pre-laminated PB is now produced by the mills and this elimi-

nates the need for onsite lamination, which would almost double the cost of

each panel. Additionally, the lower raw material cost of PB & MDF compared

with plywood is helping the revival in demand for Indian mills.

The fibre-based panels industry faces a survival risk as log supplies become tighter

Lack of integration between forestry and the wood-based panel industry sector has resulted in diffused programmes of planning and development

MDF and PB accounted for 14.9% of the total wood panel market of Rs235bn

and were valued at Rs35bn in the financial years 2013. MDF production gen-

erated a CAGR of 6%-8% during the past five years. MDF production is

totally controlled by companies in the organised segment. Of the industry

notes Bloomberg. The reason is basically the high cost involved in building

an MDF plant, which restricts competition from the unorganised segment.

Domestic production meets ca 65% of the demand, with the balance being

met via imports.

The furniture industry in India currently valued at around Rs750bn and

is dominated by the unorganised segment accounting for the rest. A clear

shift in consumers’ preference towards branded products has however,

led to a decline in the market share of the unorganised segment in favour

of the organised segment which has seen a 15%-20% growth over the

past five years. Plywood, due to its versatile nature is a prime raw material

for making furniture and accounts for almost 60% of the total wood panels

market. Laminates/veneers and MDF usage account for close to 28% and

15% respectively. The unorganised segment effectively dominates the ply-

wood production with an 80% share in a market that is growing at a slower

pace of 6%-8%. A shift of 8%-10% is expected from plywood to MDF over

the next three-four years.

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