Moulding & Millwork Producers Association May 1, 2014
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1 State of the North American MDF Industry Gary Heroux Vice President, Product Acceptance Composite Panel Association Moulding & Millwork Producers Association May 1, 2014
2 Outline What is the CPA? North American MDF Capacity & Shipments Downstream Markets Product Standard and Technical Bulletins Formaldehyde Regulations Sustainability Standard and Environmental Messaging
3 What is CPA? North American trade association Approximately 180 member companies Offices in Leesburg, Virginia, and Ottawa, Ontario Represents 95% of particleboard, MDF and hardboard manufacturing in North America Represents most wood-based decorative surfacing manufacturers in North America Also represents many of the largest suppliers, distributors and finished product manufacturers serving the North American market
4 What is CPA? Operates largest and most stringent certification program in North America for panel emissions and physical properties Operates the International Testing and Certification Center (ITCC), an independent laboratory accredited by US NIST Sponsors industry ANSI standards for particleboard, MDF, hardboard and engineered wood siding and trim
5 What is CPA? Lobbies in US and Canada for industry business interests Intervenes in major legislative and regulatory matters, including US EPA s MACT proceedings, federal and state formaldehyde regulations, and fiber and energy initiatives Publishes monthly and annual reports on industry economic performance
6 Capacity and Shipments
7 Composite Panel Industry Shipments 10 Year Comparison 10,000 Shipments PB MIllion Sq Ft - 3/4" basis 9,000 8,000 7,000 6,000 5,000 Shipments MDF Shipments HB 4,000 3,000 2,000 1, F 2015 F
8 Composite Panel Association Annual Capacity Comparison CAPACITY PB MIllion Sq Ft - 3/4" basis 12,000,000 10,000,000 8,000,000 CAPACITY MDF CAPACITY HB 6,000,000 4,000,000 2,000, F 2015 F
9 MDF Capacity & Shipments (US/CN) 3,500,000 Forecast MIllion Sq Ft - 3/4" basis 2,500,000 1,500,000 MDF Capacity MDF Shipments 500,000
10 2014 Capacity 13 North American companies 20 MDF mills 5 mills advertise a moulding grade 1 closure SierraPine Springfield, Oregon 1 reopening Pembroke, Ontario, Canada Several mills have planned capital improvements Wood pellet exports threatens composite panel furnish supplies
11 US/CN MDF Shipments by Product Category Store Fixtures Retail Millwork Office Furniture Door Components Moulding Laminate Flooring Household Furniture Other (NEC) Cabinets, Vanities & Countertops - 50, , , , , , , ,000
12 Changing Markets Residential Furniture Moulding and Doors Laminate Flooring Commercial Interiors Components, Cabinets, Commercial Furniture
13 Product Standard &Technical Bulletins
14 ANSI A Product Standard
15 ANSI A Product Standard
16 MDF Moulding Grade? Mostly a mill specification Mills work with customers to customize desirable panel properties for moulding and millwork Approximately an ANSI Grade 155 Specialty product; small percentage of product mix (5-10%) High density (46-50 pcf) High resin content Can have enhanced moisture resistance (ANSI MR10, MR30, MR50) No added formaldehyde (NAF) an option
17 ANSI A208.2 Moisture Resistance 2.6 Moisture resistance (MR): The term moisture resistance (MR) refers to the thickness swell and bond integrity characteristics of MDF, used in interior applications, when subjected to periodic exposure to moisture. The moisture resistance categories of MDF are identified by the following designations: MR10 MDF that meets the reduced thickness swell criteria in Subsection MR30 MDF that meets the modulus of rupture criteria for advanced bond integrity in Sub- section MR50 MDF that meets both the reduced thick- ness swell criteria in Subsection and the modulus of rupture criteria for advanced bond integrity in Subsection
18 Storage & Handling Technical Bulletin
19 MDF Mouldings Technical Bulletin
20 Formaldehyde Regulations
21 Formaldehyde Amendments to the California CARB Regulation Federal EPA 2014 rulemaking: Formaldehyde Emissions Standards for Composite Wood Products Federal Wood Industries Coalition is seeking harmonization between the CARB and EPA regulations Anticipate new CARB and EPA regulations to be implemented late 2015 Monitoring state activities to limit formaldehyde in children s products and furniture
22 Sustainability Standard
23 ECO-CERTIFIED COMPOSITE (ECC) Standard CPA 4-11 Voluntary standard approved in September 2011 by the CPA Board Applies to particleboard, MDF, hardboard, and engineered wood siding & trim Certification is granted on a plant basis, not for individual panels Requires an annual audit
24 ECC Standard Plant must use an independent third party certifier for formaldehyde emissions unless all products are CARB exempt from testing Only panels that are CARB compliant or exempt from the CARB Rule may be labeled ECC certified Plant must conform to at least 3 of 5 specific environmental criteria to qualify for ECC recognition
25 ECC Standard 1) Carbon Footprint Demonstrate that the panel s cradle-to-gate carbon footprint as determined in kg-co 2 equivalents of greenhouse gas (GHG) emissions. Each production facility will use the CPA supplied carbon calculator to determine if its panels perform as a net carbon sink.
26 The Carbon Calculator The Carbon Calculator is the sole property of the Composite Panel Association (CPA) and may not be used in whole or in part without CPA s prior written consent.
27 The Carbon Calculator is the sole property of the Composite Panel Association (CPA) and may not be used in whole or in part without CPA s prior written consent.
28 ECC Standard 2) Local and Renewable Resource At least 85% of wood fiber is sourced within 250 miles of the panel plant.
29 ECC Standard 3) Recycled/Recovered Use of a minimum of 75% recycled or recovered wood fiber; OR Use of at least 50% recycled or recovered wood fiber AND a minimum of 5% post-consumer wood fiber.
30 ECC Standard 4) Sustainability 97% of wood fiber furnish is either converted into panels or re-utilized as a valued product. Non-valued products include wood residuals shipped to a landfill, material hauled away for a tipping fee as waste material, and boiler ash waste.
31 ECC Standard 5) Wood Sourcing Must include assessment of 100% of wood fiber Demonstrate conformity to one of the following: FSC - Controlled Wood Standard (2008) FSC - Chain of Custody Standard (2008) SFI Fiber Sourcing Requirements (2011)
32 ECC Finished Products Program
33 ECC: A Universal Identity The ECC identification mark (logo) is the sole property of the Composite Panel Association (CPA) and may not be used in whole or in part without CPA s prior written consent. Trademark registration is pending.
34 Finished Products Program Eligible Participants Fabricators of finished products Fabricators of components Laminators
35 Finished Products Program Requirements At least 50% of a finished product s content (by volume or weight) must be composite wood that is certified in accordance with the ECC standard. At least 95% of a participant s composite wood must be certified as ECC.
36 Finished Products Audit Annual Verification Audits Year One: Onsite Audit Year Two: Desk Audit Onsite Audit Every Other Year
37 Environmental Product Declaration (EPD)
38 Additional Resources Composite Panel Association Gary Heroux ext
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