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

European Market Potential for Indonesian Lightwood Products TEI / Oct. 17 th , 2019 Frank Maul, IPD Expert Markets & Sourcing Funded by Implemented by

Topics • Market Figures • Market Requirements • Potential for Export • Promotion of Indonesian Lightwood Products Funded by Implemented by

Market Figures Funded by Implemented by

Wood Industry Turnover (without furniture) (2017, top 15 EU countries, Mio €) 30.000, 25.000, 20.000, 15.000, 10.000, 5.000, 0, Germany Austria CZ Norway Italy France UK Sweden Poland CH Finland Spain Turkey* Belgium Portugal Funded by Implemented by

Turnover of the wood industry in Europe by segments (2017, Mio €) other; 1700; 7% packaging; Sawmill, 2570; 10% Sawmill, planing planing; wood based panel 7300; 29% parquet building building; packaging wood based 8510; 33% other panel; 5190; 20% parquet; 180; 1% Funded by Implemented by

European wood based panel market 2016, m³ Export Import Production Consumption 100.000.000 80.000.000 60.000.000 40.000.000 20.000.000 - -20.000.000 -40.000.000 -60.000.000 Funded by Implemented by

Top 10 European wood based panel markets 2016, consumption in m³ 12.000.000 10.000.000 8.000.000 6.000.000 4.000.000 2.000.000 - MDF/HDF Particle board and OSB Plywood Funded by Implemented by

European wood products consumption (2017, Mio m³) 120 100 80 60 40 20 0 SW Particlebo MDF/Har HW plywood OSB Gluelam CLS timber ard dboard timber 2017 101 40,5 18,7 11,1 9,7 8,1 5,8 5,1 Funded by Implemented by

Furniture industry turnover (top 15 EU countries, Mio €) 25.000, 20.000, 15.000, 10.000, 5.000, 0, Germany Italy UK France Holland Austria Sweden Switzerland Denmark Indonesia Poland Spain Turkey Belgium Romania Czech Rep. Funded by Implemented by

Production of wooden furniture per segment (Germany, Mio €) Kitchen furniture Furniture Shop parts Bedroom Living fitting/ furniture furniture Office room furniture furniture Funded by Implemented by

Building activity in Germany (residential building permits) 300.000 250.000 200.000 150.000 100.000 50.000 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Funded by Implemented by

Expenses for renovation and refurbishment (Germany, billion €) 50 45 40 35 30 25 20 15 10 5 0 2011 2012 2013 2014 2015 Funded by Implemented by

Wood-related industries in comparison Turnover perspective construction, furniture and wood industry Germany (in billion €) 124,7 121,5 118,3 115, 111,4 108,1 106,8 102,2 99,1 98,3 88,8 88,6 87,6 81,4 29,1 28,6 27,4 28, 27,3 26,9 26,2 25,8 25,1 25,3 24,5 24,9 22,6 21, 18,4 18,6 17,4 17,4 17,8 17,9 18,1 16,7 16,9 17,1 16, 16,4 15,4 15,8 2007 2008 2009 2010 2011 2012 2013 2014 2015S 2016P 2017P 2018P 2019P 2020P Construction Furniture Wood Bauindustrie Möbelindustrie Holzindustrie Funded by Implemented by

Main Market Requirements Legal requirements • Technical requirements • Sustainability requirements • Typical customer-specific requirements • Funded by Implemented by

Legal requirements EUTR • CE Mark • REACH • Funded by Implemented by

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 • Funded by Implemented by

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. Funded by Implemented by

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). Funded by Implemented by

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 . Funded by Implemented by

Forest certification • 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 Funded by Implemented by

Potential for Export to Europe Funded by Implemented by

European wood based panel consumption, by products [m³] 80.000.000 70.000.000 60.000.000 50.000.000 40.000.000 30.000.000 20.000.000 10.000.000 - 2013 2014 2015 2016 MDF/HDF Particle board and OSB Plywood Funded by Implemented by

Comparison of weight Density of wood based panels 900 800 700 600 500 Kg/m³ 400 300 200 100 0 Chipboard P2 MDF Poplar Albasia Jabon Plywood Plywood Plywood Funded by Implemented by

Comparison of price Panel Prices (P2 = 100 %) 400 350 300 250 200 % 150 100 50 0 Chipboard MDF Poplar Albasia Jabon P2 Plywood Plywood Plywood Funded by Implemented by

Comparison of strength Bending strength flat of different wood based panels 35 30 25 20 N/mm² 15 10 5 0 Chipboard P2 MDF Poplar Albasia Jabon Plywood Plywood Plywood Funded by Implemented by

Screw withdrawal Screw withdrawal flat, surface 1400 1200 1000 800 N 600 400 200 0 Chipboard MDF Poplar Albasia Jabon P2 Plywood Plywood Plywood Funded by Implemented by

Strength to weight ratio Strenght to Weight Ratio 31 Plywood 29 27 25 Processed boards 23 21 19 17 15 300 400 500 600 700 800 900 Spanplatte P2 MDF Pappelsperrholz Poplar plywood Albizziasperrholz Jabonsperrholz Albisia plywood Jabon plywood Funded by Implemented by

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 Funded by Implemented by

Lightweight Products and Potentials LW PB LW other 7% 4% LW 15% STD WBP 85% LW PW LW MDF 3% 1% 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 Funded by Implemented by

KD furniture • Increasing number of households require more furniture • Increasing requirement for mobility • Trend and fashion aspects Funded by Implemented by

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 Funded by Implemented by

Plywood market and potentials Share of area of application of softwood plywood in Europe [%] 30 25 20 15 10 5 0 formwork sheathing hoarding other crating other other other rolling dunnage furniture int. applic. building transport decorative other Funded by Implemented by

Necessary developments • Focussed customer services • Grading • Customer surface grades • Purpose surface grades • Cut to size • Surfacing • Lightwood / Albasia grading • CE mark Funded by Implemented by

Application and user guides for Albasia • Grades • Sizes • Services • Surface treatment • Veneering • Foiling • painting • Glueing • Edges • Technical properties Funded by Implemented by

Promotion of Leightweight Timber Products Funded by Implemented by

Promotion of Indonesian Lightweight Timber Products OBJECTIVE + Attack the important market of panels and boards in Europe, in which albasia products are not yet very known + Promote them as an interesting alternative to plywood from other species (such as poplar) or panels from wood fibers and particles, because they have certain advantages (price, weight, characteristics such as stability) Funded by Implemented by

Promotion of Indonesian Lightweight Timber Products OBJECTIVE + Generate income and employment from a sustainable, natural material that is grown by small-scale farmers Funded by Implemented by

Promotion of Indonesian Lightweight Timber Products OBJECTIVE + Join forces: IPD, DGNED, SIPPO, Fairventures Funded by Implemented by

Promotion of Indonesian Lightweight Timber Products PRODUCT FOCUS +plywood and blockboard from albasia, a fast-growing and lightweight timber species in Indonesia Funded by Implemented by