European Market Potential for Indonesian Lightwood Products TEI / - - PowerPoint PPT Presentation

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European Market Potential for Indonesian Lightwood Products

TEI / Oct. 17th, 2019 Frank Maul, IPD Expert Markets & Sourcing

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Topics

• Market Figures
• Market Requirements
• Potential for Export
• Promotion of Indonesian Lightwood Products

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Market Figures

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Wood Industry Turnover (without furniture)

(2017, top 15 EU countries, Mio €)

0, 5.000, 10.000, 15.000, 20.000, 25.000, 30.000, Germany Italy France UK Sweden Poland Austria CH Finland Spain Turkey* Belgium CZ Norway Portugal

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

Sawmill, planing; 7300; 29% wood based panel; 5190; 20% parquet; 180; 1% building; 8510; 33% packaging; 2570; 10%

• ther; 1700;

7% Sawmill, planing wood based panel parquet building packaging

• ther

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• 60.000.000
• 40.000.000
• 20.000.000
• 20.000.000

40.000.000 60.000.000 80.000.000 100.000.000

Export Import Production Consumption

European wood based panel market 2016, m³

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• 2.000.000

4.000.000 6.000.000 8.000.000 10.000.000 12.000.000 MDF/HDF Particle board and OSB Plywood

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

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European wood products consumption

(2017, Mio m³)

SW timber Particlebo ard MDF/Har dboard HW timber plywood OSB Gluelam CLS 2017 101 40,5 18,7 11,1 9,7 8,1 5,8 5,1 20 40 60 80 100 120

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Furniture industry turnover

(top 15 EU countries, Mio €)

0, 5.000, 10.000, 15.000, 20.000, 25.000, Germany Italy UK Poland France Spain Turkey Holland Austria Sweden Belgium Switzerland Denmark Romania Czech Rep. Indonesia

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

Kitchen furniture Furniture parts Bedroom furniture Shop fitting/ furniture Office furniture Living room furniture

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50.000 100.000 150.000 200.000 250.000 300.000 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Building activity in Germany (residential building permits)

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5 10 15 20 25 30 35 40 45 50 2011 2012 2013 2014 2015

Expenses for renovation and refurbishment (Germany, billion €)

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81,4 88,8 87,6 88,6 98,3 99,1 102,2 106,8 108,1 111,4 115, 118,3 121,5 124,7 16,7 17,4 15,4 15,8 16,9 17,1 16, 16,4 17,4 17,8 17,9 18,1 18,4 18,6 27,3 25,8 21, 22,6 24,5 24,9 25,1 25,3 26,2 26,9 27,4 28, 28,6 29,1 2007 2008 2009 2010 2011 2012 2013 2014 2015S 2016P 2017P 2018P 2019P 2020P

Turnover perspective construction, furniture and wood industry Germany (in billion €)

Bauindustrie Möbelindustrie Holzindustrie

Wood-related industries in comparison

Construction Furniture Wood

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Main Market Requirements

• Legal requirements
• Technical requirements
• Sustainability requirements
• Typical customer-specific requirements

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Legal requirements

• EUTR
• CE Mark
• REACH

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EUTR - European Union Timber Regulation

• Since 2013
• To stop trade of illegally logged timber
• Tool to stop deforestation and to protect

endangered species

• excluded (till today)
• Recycling / waste
• packaging
• Printed paper
• Certain bamboo
• Certain furniture

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CE Mark

• The CE Mark is a European safety

standard label.

• It indicates that the manufacturer

assumes responsibility and that the product complies with all relevant norms and standards.

• For products concerned (especially those

dedicated to building purposes), CE Mark is the basis for the legal entry of the product in the EU.

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CE Mark

• The relevant regulation for CE marking

in our industry is the Construction Products Regulation 305/2011.

• The basis for the labelling of the

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

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CE Mark: Declaration of performance

• Once the product in its application

has been classified into a system of conformity, the product can be subjected to the appropriate testing and the essential properties are compiled in a declaration of

• performance. The declarations of

performance must be made freely available to customers.

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• Important for risk assessment in

EUTR

• Tool for risk minimization and

documentation

• Chain of custody guarantees validity

and legality up to the source

• Certified products are not

necessarily EUTR conform

• Certified products face rising

demand of consumers

Forest certification

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Potential for Export to Europe

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European wood based panel consumption, by products [m³]

• 10.000.000

20.000.000 30.000.000 40.000.000 50.000.000 60.000.000 70.000.000 80.000.000 2013 2014 2015 2016

MDF/HDF Particle board and OSB Plywood

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Comparison of weight

100 200 300 400 500 600 700 800 900 Chipboard P2 MDF Poplar Plywood Albasia Plywood Jabon Plywood

Kg/m³

Density of wood based panels

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Comparison of price

50 100 150 200 250 300 350 400 Chipboard P2 MDF Poplar Plywood Albasia Plywood Jabon Plywood

%

Panel Prices (P2 = 100 %)

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Comparison of strength

5 10 15 20 25 30 35 Chipboard P2 MDF Poplar Plywood Albasia Plywood Jabon Plywood

N/mm²

Bending strength flat of different wood based panels

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Screw withdrawal

200 400 600 800 1000 1200 1400 Chipboard P2 MDF Poplar Plywood Albasia Plywood Jabon Plywood

N

Screw withdrawal flat, surface

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Strength to weight ratio

15 17 19 21 23 25 27 29 31

300 400 500 600 700 800 900

Strenght to Weight Ratio

Spanplatte P2 MDF Pappelsperrholz Albizziasperrholz Jabonsperrholz

Plywood Processed boards

Jabon plywood Albisia plywood Poplar plywood

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Lightwood potential

• Wooden lightweight panels and boards

have a growing potential in all of the market segments such as:

• Transport (automobile, aviation, shipping

industry - rolling, dunnage, packaging), furniture, construction (commercial, institutional, architectural, residential applications)

• Experts estimate a mid-term potential

share of 15-20% for lightweight products

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Lightweight Products and Potentials

STD WBP 85% LW PW 3% LW MDF 1% LW PB 7% LW other 4% LW 15% STD WBP LW PW LW MDF LW PB LW other

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

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KD furniture

• Increasing number of households

require more furniture

• Increasing requirement for mobility
• Trend and fashion aspects

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Mobile homes and caravans

• Increasing fuel prices forcing

manufacturers of mobile homes and caravans to reduce weight significantly

• Legal limitations in driving licenses‘

weight allowance drive manufacturers of mobile homes and caravans to reduce weight significantly

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Plywood market and potentials

5 10 15 20 25 30 formwork sheathing hoarding

• ther

crating rolling dunnage

• ther

furniture

• int. applic.
• ther
• ther

building transport decorative

• ther

Share of area of application of softwood plywood in Europe [%]

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Necessary developments

• Focussed customer services
• Grading
• Customer surface grades
• Purpose surface grades
• Cut to size
• Surfacing
• Lightwood / Albasia grading
• CE mark

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Application and user guides for Albasia

• Grades
• Sizes
• Services
• Surface treatment
• Veneering
• Foiling
• painting
• Glueing
• Edges
• Technical properties

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Promotion of Leightweight Timber Products

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OBJECTIVE

+Attack the important market of panels and boards in Europe, in which albasia products are not yet very known +Promote them as an interesting alternative to plywood from

• ther species (such as poplar) or panels from wood fibers

and particles, because they have certain advantages (price, weight, characteristics such as stability)

Promotion of Indonesian Lightweight Timber Products

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OBJECTIVE

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

Promotion of Indonesian Lightweight Timber Products

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OBJECTIVE

+Join forces: IPD, DGNED, SIPPO, Fairventures

Promotion of Indonesian Lightweight Timber Products

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Promotion of Indonesian Lightweight Timber Products

PRODUCT FOCUS

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

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

European Wood Products - Consumption 2014, in million m³

10 20 30 40 50 60

Potential market = over 20 million m³ / year

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Establishing the Basis

• Testing of panels and boards from

albasia in Germany (done by EPH Dresden, requested and funded by IPD)

Characteristic Standard Value for Albasia plywood Thickness 15 mm Bending strength, flat, longitudinal EN 310 23,2 N/mm² Bending strength, flat perpendicular EN 310 27,3 N/mm² MoE, longitudinal EN 310 2930 N/mm² MoE, perpendicular EN 310 3690 N/mm² Density EN 323 345 kg/m³ Screw withdrawal resistance, surface EN 320 969 N Screw withdrawal resistance, edges, longitudinal EN 320 816 N Screw withdrawal resistance, edges, perpendicular EN 320 784 N

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Lightweight Timber from Indonesia - Flyer

• Short presentation
• Technical values in comparison
• Distributed at fairs and send to

distributors

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Creating Added-Value

• Support to ILWA in providing a system and the templates

for the CE declaration of performance

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Identification of & support to exporters

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

• Visit of some 15 exporters
• Preparation of the exporters

for visit of the importers

• Visit of some 15 exporters
• Preparation of the exporters

for visit of the importers

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Matchmaking Activities

ZOW (Trade Fair for Suppliers to the Furniture Industry)

Germany, February 6th-8th, 2018

ZOW (Trade Fair for Suppliers to the Furniture Industry)

Germany, February 6th-8th, 2018

• 2 Indonesian exporters
• n the IPD / Indonesian stand

at the 100m2 pavilion of the German Lightweight Construction Industry

• 2 Indonesian exporters
• n the IPD / Indonesian stand

at the 100m2 pavilion of the German Lightweight Construction Industry

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Matchmaking Activities

BUYING MISSION

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

BUYING MISSION

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

• 4 European importers visited 11

Indonesian exporters

• 4 European importers visited 11

Indonesian exporters

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Matchmaking Activities

BUYING MISSION

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

BUYING MISSION

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

• All importers participated in the International Lightweight Cooperation Forum ILCF

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

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

additional exporters that participated in ILCF

• All importers participated in the International Lightweight Cooperation Forum ILCF

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

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

additional exporters that participated in ILCF

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Matchmaking Activities

3rd Indonesian Lightweight Timber Pavilion at interzum, the international fair for the furniture and interior construction industries' supplying sections May 21st-24th, 2019 – Cologne, Germany

• Main organizer: ITPC

(Indonesian Trade Promotion Center) in Hamburg

• 50m2 pavilion / 3 exhibiting

Indonesian exporters

• Pavilion partly made from

albasia products

• Main organizer: ITPC

(Indonesian Trade Promotion Center) in Hamburg

• 50m2 pavilion / 3 exhibiting

Indonesian exporters

• Pavilion partly made from

albasia products

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IPD – Import Promotion Desk Project Office Bonn c/o sequa gGmbH Alexanderstraße 10 53111 Bonn Fon: +49 (0) 228 965 05 890 Fax: +49 (0) 228 926 37 989 info@importpromotiondesk.de www.importpromotiondesk.com

Thank you!

Frank Maul maul@importpromotiondesk.de

Questions?