Encouraged by demand

Some industry people may remember that, until early 2015, Hexion was known as Momentive Specialty Chemicals. The company serves a wide range of industries with various chemicals, such as resins, adhesives and waxes, and operates globally from the Americas to Asia to Australia.

The materials it produces are used by Hexion's customers to manufacture a wide range of composite and engineered wood products, including plywood, particleboard, oriented strand board (OSB), medium density fibreboard (MDF), structural beams, furniture, mouldings and millwork.

The increased use of plywood in Europe and North America will continue to be dependent on the recovery of the economies in both regions, says Hexion. Plywood production is also growing in both China and Russia, where the central governments are actively promoting investment in forestry and forest products, says the company, adding that there continue to be opportunities for the plywood market in Europe.

"We're encouraged by the demand we're seeing for resin, a key component in the production of plywood, in all the regions we serve," said George Gallacher, vice president, European forest products at Hexion Inc.

"As a global leader in resin systems for the forest products industry, our continuing goal is to be located where we can efficiently serve our global customer base."

In addition to increased productivity requirements - and demand for improved panel properties in accordance with a wide variety of end-use applications - Mr Gallacher feels that resin makers must continue to help panel manufacturers meet ever more stringent emissions standards.

"Evolving regulations, customer expectations and the increasing need for economical and innovative solutions can put pressure on any supplier," said Mr Gallacher. "Hexion's global resin and adhesive application expertise, together with our wide range of products and services, helps us to answer the call."

In fact, Mr Gallacher said, it's those traits at Hexion which helped its joint venture in Russia, which started production in 2009, to be successful. "It was part of an ongoing strategy of providing advanced technology to customers in key markets around the world."

In Europe, Hexion produces resin for the manufacture of plywood in Finland, Germany, Spain and Russia, with research and development and technical service laboratories located in Finland. It also cooperates with laboratories in the United Kingdom, Germany and Italy.

Of course the recovery in the use of plywood in Europe continues to be dependent on the recovery of the overall economy... whether it is being used as a building material, for furniture, in transportation, or for any of its other uses. With the European economy recovering (although some areas are improving faster than others) plywood and laminated veneer lumber (LVL) are seeing an increase in demand, said Mr Gallacher.

"The plywood business in Europe has been good for several years. Birch plywood, which is widely used in the transportation industry for truck flooring, train wagons and in shipbuilding, has been on the rise," confirmed the vice-president.

"Indeed, several forest product industry investments will come online in 2016, including two new birch plywood mills in Estonia and an LVL factory in Finland, which will start production later this summer.

"Our technology offering is as complex as the industry," said Mr Gallacher. "Whether our customers need phenol formaldehyde (PF), urea formaldehyde (UF), or melamine formaldehyde/melamine urea formaldehyde (MF/MUF) resins, we have a chemical solution that we feel can position the forest products industry for success. Our products can also help in speciality applications for plywood where our customers need fire-retardant, or low conductivity, properties; or if they're looking for high durability."