New year begins with mixed messages

27 February 2015

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In my comment column in the last issue, I said that I hoped to be back in work by early January 2015, following two spinal operations in September and October 2014.


Unfortunately, this was again an optimistic forecast on my behalf, as I had to have a third spinal operation on January 5, 2015, to be followed by a further six weeks or more off work. Not a good start to the New Year for me! However, this time, I am more confident in predicting my return to work some time during February.

Once again, I have to thank Stephen Powney, editor designate of WBPI, and deputy editor Derek Steel, for stepping up to the breach and producing what I am sure you will agree is an excellent February/March 2015 issue.

The big news among panel manufacturers is that Norbord Inc and Ainsworth Lumber Co Ltd are to merge, creating a leading global wood products company focused on OSB across North America, Europe and Asia. Of course, Norbord already has two well-established OSB factories in Europe - one in the UK and one in Belgium - with significant expansion plans for the UK operation already announced.

The next, April/May, issue of WBPI will feature our Focus on OSB and it looks as if there will be plenty to report - from North America and from the rest of the world.

Also in the US, Arauco, which has been active there on the acquisition trail in recent years, is to invest in its Carolina mill and has bought a Suddekor paper treating business in North Carolina (see p6). We have an interview with Kelly Shotbolt of Arauco North America on p38. Unfortunately, the economic news generally is less good than it was earlier in 2014, with the Eurozone falling into depression, partly due to falling oil prices. The recent election result in Greece, suggesting an attempt to renegotiate that country's enormous debt, will probably not help to foster optimism in the Eurozone, either.

In another downbeat report, the Swedish Forest Agency reports that production output for the major forest products in the UNECE region (Europe, the Commonwealth of Independent States (CIS) and North America) is still 10-15% below the average annual output for the four years preceding the crisis (2004-2007).

However, the US is still showing growth, if not quite as fast as expected a year ago. As always, it seems to depend on whether one listens to analysts, or looks at what is actually happening in the markets. Robin Meade's market update on p40 gives an idea of exactly what the industry, especially the OSB manufacturers, think of the future prospects. And they are apparently optimistic.

There is also good news on laminates, with the Freedonia Group claiming in its study entitled World Decorative Laminates that global demand for decorative laminates is expected to rise 5.6% per year, to 10.7 billion m2 in 2018, valued at US$40.8bn (see p10).

The April/May issue will also contain our preview of the Interzum and Ligna exhibitions to be held in Germany in May. I really intend to be fit enough to see you there!