Other 4% Packaging 4%

Transcription

1 Future of the European Panel Industry IG Metall Seminar für die Betriebsräte aus der Holzwerkstoffindustrie Trier, Germany 3 November 2009 Kris Wijnendaele EPF Secretary General

2 European Woodworking Industry EUR 270 billion in EU-27 Furniture 49% Construction timber incl. Parquet 20% Sawing, planing, impregnation 14% Other 4% Packaging 4% Wood-based panels 9% Source: EPF & Eurostat

3 European Woodworking Industry 2.8 million jobs in EU ,000 enterprises in EU-27 furniture 51% sawmilling 12% wood-based panels 5% furniture 38% sawmilling 11% wood-based panels 1% other 6% packaging 4% construction elements 22% other 11% packaging 3% construction elements 36% Source: EPF & Eurostat

4 European Woodworking & Furniture Industries Production value: 270 billion euro/year Employment: 2.8 million jobs in EU-27 Number of companies: : > Typical SME-sector, with many subsectors, often located in rural areas

5 Wood-based Panels in Europe* 2008 MDF 22% OSB 6% Hard/Softboard 5% Particleboard 61% Plywood 6% Total : 65.8 million m³ *excluding Russia & Turkey

6 European Panel Federation Members in 25 countries Particleboard = 34.5 million m³ MDF = 12.2 million m³ OSB = 3.3 million m³

7 Overview Particleboard Industry (1000 m³) % -10.5% -20% -20% -1% -22% * e xport c onsu mption produ c tion export consumption production Q1-Q2 Q provisional estimates

8 Particleboard plant closures / major extensions United Kingdom -100,000 (2009) NORWAY -80,000 m³ GERMANY -470,000 m³ (2008/2009) CZECH R. -350,000 m³ Belgium -200,000 (2009) SERBIA +350,000 m³

9 2008 Particleboard trade (EU-27) 455,000 m³ imports (-25.5%) 2.1 million m³ exports (+5.7%) 1.6 million m³ net exports

10 MDF industry in Europe (million m³) +2.8% +3.7% -8% '03 '04 '05 '06 '07 '08 MDF consumption MDF production -8% 2008: 12.2 million m³ production 11.1 million m³ consumption

11 MDF Capacity Changes 2008 / 2010 FRANCE -190,000 m³ (2009) SPAIN 200,000 m³ (2008) POLAND 250,000 m³ (2008) 500,000 m³ (2010) GERMANY -100,000 m³ (2008)

12 2008 MDF trade (EU-27) 245,000 m³ imports (-20%) 1.6 million m³ exports (+13%) 1.3 million m³ net exports

13 OSB Production in Europe 4 3,5 3 2,5 2 1,5 1 0,5 0 (million m³) '03 '04 '05 '06 '07 '08 OSB consumption OSB production -9% -9% 2008: 3.3 million m³ production 2.7 million m³ consumption

14 OSB trade (EU-27) 500,000 m³ in 2008 (+39%) 985,000 m³ in 2008 (+31%) 485,000 m³ net exports

15 OSB Capacity Changes 2008 / 2010 FRANCE -120,000 m³ (2009) LATVIA 500,000 m³ ( ) 09) ROMANIA 500,000 m³ (2009)

16 Wood-Based Panel Markets EUROPE m Production Consum ption UNECE Timber Committee Panel Markets

17 Wood-based Panel Markets Europe Particleboard d OSB m m Production Imports Exports Production Imports Exports MDF Plywood m m Production Imports Exports Production Imports Exports UNECE Timber Committee Panel Markets

18 Wood-Based Panel Markets NORTH AMERICA production: -18.0% consumption: -18.9% m Production Consum ption UNECE Timber Committee Panel Markets

19 Wood-Based Panel Markets 1000 m Particleboard d North America Structural Panels (OSB & Plywood) 1000 m Production Imports Exports OSB Plywood MDF Fibreboards m m Production Imports Exports Production Imports Exports UNECE Timber Committee Panel Markets

20 Wood-Based Panel Markets North America Capacity reductions minus 690,000 m³ plywood minus 490,000 m³ OSB minus 250,000 m³ PB minus 350,000 m³ MDF minus 550,000 m³ hardboard UNECE Timber Committee Panel Markets

21 Challenges for the future

22 Wood-based Panel Markets Europe Market characteristics - Subdued construction sector (although smaller amplitude compared to North America) - Lack of wood raw material because of reduced sawmill activity - until July-2008: hike in oil prices -> soaring resin & energy costs -> wood cost hike because of competition with woody biomass - Greenhouse gas emission allowances (ETS) UNECE Timber Committee Panel Markets

23 Cost evolution % +20% +4% +6%

24 Global Economic Crisis Effects in Europe Euro area and EU27 production, total industry excluding construction Euro area, seasonally adjusted series Trendline EU27, seasonally adjusted series Trendline =100

25 Global Economic Crisis Effects in Europe Quarterly GDP forecast (%, quarter-on-quarter) /1 2009/2 2009/3 2009/4 Annual GDP forecast (%, year-on-year) 2009 Spring forecast May 2009 Interim forecast Sep Germany Spain France Italy Netherlands Euro area Poland United Kingdom EU

26 Global Economic Crisis Effects in Europe Q1 09 Q2 09 Q3 09 Output Economic sentiment indicator Industrial confidence balance Private consumption Consumer confidence Retail confidence Investments Capacity utilisation Production expectations Labour market Employment expectations manuf Employment expectations services

27 Economic Crisis - Some industry sectors receive support Example in EU: Very successful subsidy for replacing old cars in Germany Canada supports Forest and wood industry with 140 millon CAD: Promotion in Canada and abroad Demonstration projects Canadian wood construction Development new products, including pilot projects to introduce them on the market Who is helping the woodworking sector in Europe???

28 Some thoughts about useful support measures for the wood-based panels industries: Communicate the positive role of wood-based products as carbon stores! Reduce VAT tariffs for: residential construction, including renovation Kyoto-friendly products (e.g. Wood-based products) Give rewards to consumers for replacing e.g. old kitchens, bathrooms...

29 Some thoughts about useful support measures for the wood-based panels industries: Encourage wood recycling and cascaded use of wood Establish legal requirements for minimum content of wood in construction Allow multi-storey buildings (e.g. 7 floors high)...

30 Issues determining future success of wood-based panels Wood availability EU RES policy Need for a policy on a cascaded use of wood Efficient collection schemes for urban/recycled wood Enhance & automate cleaning/recycling techniques Formaldehyde Bridge gap between ENs and CARB Phase 2 Develop cost effective formaldehyde-free free resins Automation of production, packaging & finishing processes Improve properties of very low density panels Non-Destructive Testing

31 Wood availability challenges The European Union and all Member States are heavily promoting and supporting the use of renewable energies in the fight against climate change in many ways Newest Challenge: EU Emission Trading Scheme (ETS) will hit the panel industry twice: New costs for purchasing CO2 emission allowances Even more competition for wood since other industrial sectors will be driven to RES due to the cost of CO2 emission allowances Fortunately, EPF managed to get the sector on the draft EU list to be recognised being at risk of carbon leakage

32 Wood availability challenges Looking for solutions UNECE/FAO conducted wood availability studies on the basis of the national wood balances methodology developed by Prof. Mantau of the University of Hamburg UNECE/FAO and Prof. Mantau are conducting a new study on future wood availability for the EU Commission EU Commission establised a reporting framework for EU Member States on the effects of their implementation of the EU RES policy and the EU Biomass Action Plan. Member States need to report on future wood supply and distortion of competition with material use of biomass MCPFE WG on "sustainability criteria" for forest biomass production, including bioenergy

33 Wood availability challenges Looking for solutions Recognition of carbon storage in Harvested Wood Products (HWP) by COP15 in December 2009 in Copenhagen should help in promoting the cascaded use of wood : 1. Use wood to manufacture durable products 2. Recycle wood co- and byproducts and wood waste as much as possible 3. Energy recovery only at the end of wood s life cycle