With two new fibreboard plants – a 350,000m3/year thin MDF/HDF line and a 120,000m3/year standard MDF line – being brought on stream respectively by Eucatex and the newest plywood convert to fibreboard, Floraplac, by this year’s end, annual overall panel capacity in Brazil has swollen to almost 10 million m3.

The furniture sector has benefited greatly from a much needed boost this year after the Brazilian government cut the country’s IPI industrial products tax by 5%. Panel producers, too won some relief from a temporary relaxation of the tax.
That stimulus will have come as welcome news to another related, and increasingly important, sector – the wood components industry. This relatively new supply business, providing a wide range of panel based parts and mouldings, has grown up in Brazil within the past five years in response to changes in furniture manufacturing.
One wood components company which is expecting to expand its sales to the furniture business and to some other sectors in 2010 is São Paulo state-based Compomade Componentes de Madeira of Agudos.

Specifically targeting powerful demand for thin board in the domestic market, the new 350,000m3/year Dieffenbacher HDF/MDF line, erected at Eucatex’s Salto site, could operate at full capacity as soon as March 2011. While Brazil has plenty of MDF manufacturers turning out board 10mm and thicker, Eucatex is confident its line is the country’s first to be installed specifically for thin fibreboard.
“You do have other lines that make thin board, but not with the same efficiency that our line will have,” declared Eucatex’s ebullient executive vice president Flavio Maluf earlier this year.
In July he told WBPI his thin HDF product would be particularly good quality and high density and that its surface would be substantially better than that of thin MDF board.
“We are very happy, because the Brazilian economy is recovering very sharply this year,” said Mr Maluf.

The ongoing integration process to form the new group, named Duratex SA, had already ‘captured’ synergies valued at more than US$18.4m by early July 2010. The group says it is targeting eventual savings of some US$54.4m by the year 2016.

In the last issue I discussed panel cooling, which raised a few questions about mat temperature during hot pressing and so in this issue I intend to discuss what happens inside the mat during hot pressing.I have already touched on this subject in this column before. Those of you who have carefully kept previous issues can read my views on how steam affects the maximum panel width and density profile of hot-pressed products in WBPI 24(1):60 and 24(2):56.
The core layer of a panel is mainly heated by the penetration of steam generated in the surface layers of the mat. Consequently, the maximum temperature of the core is limited to the steam pressure inside the mat up until the point that the mat is completely dry, then conduction and convection mechanisms can raise the core temperature to that of the platens. Of course, this never happens in a commercial press because the press cycles are too short.

It is not always good to get what you expect, especially when your expectations were low, but the IWF show did meet the expectations of the exhibitors; they expected fewer visitors and that’s what they got.
There were also only two halls this year, compared with three in 2008, and there were quite large empty spaces in those two.
However, most said that the exhibitors were ‘quality contacts’ and that they had been involved in some interesting discussions.

Global recovery from the depths of the Great Recession has been led by the developing world, particularly China, with full support from other parts of Asia and from South America.
China’s ability to absorb huge quantities of raw materials as it builds a 21st century economy has stimulated demand for foodstuffs, metal ores, chemicals and fuel. Beneficiaries of this economic activity are to be found in disparate places around the globe, from Australian iron ore miners to West African timber producers. Latin America has also enjoyed dining at China’s table, whether the guests have been Chilean copper producers, Argentine soy growers or Brazilian pulp companies.

Arauco do Brasil SA, an MDF and MDP (medium density particleboard) manufacturer with nearly 87,000ha of its own planted forest land and seven wood panel lines at three plants in the country, is optimising its national output and preparing to grow still bigger in Brazil.

After the very downbeat report on 2008 in last year’s survey (WBPI Issue 5, 2009), our survey of 2009  shows some improvement in demand from the third quarter in Europe and earlier curtailments of production were able to be reversed, while some planned further cuts were avoided.
There was, however, one closure made in 2009 in the EU15 countries. Short-time  orking was commonplace again last year, as manufacturers tried to match supply more closely to demand.
The North American market remains very depressed and figures for housing starts also  continue to make depressing reading, with little hope on the horizon at this time.

ZOW, the supplier fair for the furniture industry and interior design, is taking place at the Expocentr Moscow from November 22-26, 2010, running at the same time as Merbel, said to be Russia’s largest furniture trade fair. Organisers are anticipating 15,000 visitors.

Weyerhaeuser has closed its Albany Engineered Wood Products facility, affecting 70 workers.
The plant produced engineered wood headers, beams and scaffolding planks.

Panel Plus, a wood based materials producer in Thailand, has ordered an entire HDF/MDF plant from Siempelkamp for its Hat Yai works.

Metsäliitto Group, which includes the Finnforest business, has reported first-half operating profits of €250m (2009: €128m loss).

Smaller MDF producers in Brazil, who manufacture standard thickness panels on Chinese-built multi-opening batch press lines, are reported to be considering entering the thin board market using continuous calender press lines.

Weyerhaeuser has reported second-quarter net profits of US$14m on net sales of US$1.8bn. The result compared with a net loss of US$106m on net sales of US$1.4bn a year ago.

US housing starts fell back in June to 549,000 units – the lowest level in eight months. Starts dropped 5% from May and 5.8% on a year ago (583,000 starts).

A new timber products exhibition Woodstock India 2010 is taking place in the state of Gujarat.

Acimall, the Italian woodworking technology manufacturers' association, reports that Q2 2010 showed significant signs of recovery.

Flakeboard Company has hired Darrell Keeling as manufacturing manager for its composite panels manufacturing business. Mr Keeling will be one of three manufacturing managers with multiple mill and business leadership responsibilities. He will be based at the company’s Ruston, Louisiana location.

James Latham director, Chris Sutton, has been appointed deputy chairman of the National Panel Products Division for the UK’s Timber Trade Association.

The 2010 China-ASEAN Timber and Wood Products Exhibition will be held November 19-22, 2010 in Nanning city, Guangxi province. The event is organised by China Timber and Wood Products Distribution Association and Beijing Rhine International Exposition Co Ltd. info@woodmarkets.com

British Columbia and Russia are predicted to be the big winners of China’s wood deficit according to the International Wood Markets Group.

New Zealand and the North American west coast are also expected to benefit from China’s growing demand for imported wood.

The Joint Symposium of Wood Composites and Veneer Processing and Products co-sponsored by Washington State University, APA and FPInnovations will be held in Seattle, WA from April 5-7, 2011. Abstracts for oral presentations should be submitted by October 31. www.woodsymposium.wsu.edu

IPPS Master Class 2010 takes place September 28-29, in Bangor, North Wales 2010. Topics include: press technology, resin developments, recycling, formaldehyde issues, and panel products markets. www.ipps.uk.com

The American Forest & Paper Association (AF&PA) has welcomed the efforts of 106 Congress members to save forest products jobs by expressing their concerns over the Environmental Protection Agency’s (EPA) proposed Boiler Maximum Achieveable Control Technology (MACT) rule.

The sales situation is looking good for furniture supplies and interior design show ZOW in Bad Salzuflen from February 14-17, 2011.

Indufor Oy, one of the world’s leading consulting companies in the fields of forestry and forest industry has invited Suvi Anttila as partner and managing director of the company. Ms Artilla joins Indufor from Pöyry, where she worked more than 20 years in various managerial and leadership positions.

The Coveright Group has achieved excellent results in the first half of 2010. Volumes in the first half of the year were around 19% above prior year, driven by growth in the emerging markets of Brazil (65% above prior year) and Russia (27% above prior year).

VRG Dong Wha, a joint stock company located in Minh Hung in the Binh Phuoc province of Vietnam signed a contract in June for a Siempelkamp MDF/HDF plant.

Oregon State University and Virginia Tech have been chosen by the National Science Foundation to lead a new industry/university cooperative research centre focused on wood based composite materials, in a US$2.2m, five-year research initiative.

Binos, situated in Springe, Germany, manufacturer of machines for the production of particleboards, MDF, OSB/OPB, wood cement and gypsum boards, is modifying two particleboard plants to combi-plants for the production of particleboard and OSB/OPB boards.

Due to the modernisation of its particleboard line in 2009 in Brilon, Germany Egger decided to replace its 20-year-old six-head sander Nova-S by the new Satosplus 22 KK-NNN with 10 sanding heads.

Steinemann Technology, based in St Gallen, Switzerland has appointed the GPI Group of Companies based in Milgrave, Australia, as the new distributor for its abrasives products in Australia.

An industry spectrum of issues and opportunities will be presented at the APA Annual Meeting, October 17-20, 2010 at the Westin La Paloma in Tucson, Arizona. www.apawood.org

A sharp increase in business at German wood processing machinery manufacturers has been welcomed by their trade body, the VDMA.

Two international trade fairs, Interzum and Ligna are teaming up in the promotion of their respective events next year.

Biesse Group SpA reports a 61% increase in order uptake for the six months ended June 30. For Biesse’s wood division the rise was 71% compared to the same period a year ago.

Vancouver-based Canfor Corporation reports a total net income of C$40.4m for Q2 of 2010, compared to C$32.5m a year ago.

Louisiana-Pacific Corporation (LP) has reported a 67% increase in Q2 sales to US$447m. Adjusted profits from continuing operations were US$75m, compared to a US$11m loss in Q2 of 2009.

VRG/Dongwha is said to have ordered the largest MDF plant in Asia from Siempelkamp.

UPM says it staged a strong recovery in the first half of 2010 and expects second half profits to be even better. The group recorded operating profits of €199m for the period (2009: €31m), with sales growing 20%.

Exports of tropical plywood from Brazil decreased 21% in June compared to a year ago, according to the International Tropical Timber Organisation’s latest market report.

Cascade, based in Boise, Idaho, is in the final stages of spending US$11m at its Medford plywood plant to replace an aging dryer with one with 50% more capacity. The project involved more than a dozen contractors.

Wood based panels giant Egger said it intends to resume its growth strategy after posting a 33% rise in annual profits to €236m.

US-based Plum Creek Timber Company reports solid gains in its manufacturing division due to improved demand from industrial wood panel customers.

Egger estimates that the damage caused by an OSB fire at its Wismar plant in June will run into six figures.

Interzum organisers say 80% of the space for next year’s show has already been booked.

The court-appointed receiver of Atcon Plywood in Miramichi, New Brunswick, PricewaterhouseCoopers (PWC), has said several potential buyers for the plywood manufacturer have come forward as markets for construction materials begin to rebound reports the New Brunswick Business Journal.

The UK’s coniferous plywood duty-free quota has now been exhausted.

The American Wood Council (AWC) has established itself as an independent trade association to represent wood product manufacturers.

European energy companies are showing increased interest in sourcing biomass from the southern US, according to the North American Wood Fiber Review.

US overseas MDF imports are running counter to industry trends, according to industry newsletter Random Lengths International.

Conference headed ‘The Status and Trends of the Global-Pacific Rim Forest Industry: Australasia’s Role’ takes place November 4-5, 2010 at Bayview Eden, Melbourne, Australia. www.prcc.com.au/dana2010

Wood panels manufacturer, Norbord, is in the final phase of a £25m investment programme at its site at Cowie, Stirlingshire, UK.

Interprint GmbH in Arnsberg has acquired the Russian subsidiary OOO Coveright RUS from the Coveright Surfaces Group and its joint venture partner Jacobs Trading Ltd. The transaction is subject to the approval of the Russian Antitrust Authorities.

The Society of Wood Science and Technology will hold its 2010 International Convention in Geneva, Switzerland at the Palais des Nations, October 11-15. Theme will be ‘Role of wood science in the green building movement’. www.swst.org

Swedspan Polska has celebrated the start of the construction works for a new ultra thin high density fibreboard (UT-HDF) production site. The amount of the entire investment is around €140m.

A successful sale for Siempelkamp in Eastern Europe took place in June when the Belorussian company VMG Industries Ltd signed a contract for a complete particleboard plant which is scheduled to be built at the Mogilev location in 2011.

Norbord has reported earnings of US$37m in the second quarter, as OSB shipments picked up 35% from the first quarter.

Spanish plywood manufacturer Garnica has officially opened its €12.2m new factory.

Westmill Industries, based in Vancouver BC, have recently received an order from West Fraser Mills Ltd, Canada, for a Westmill LightSORT (GVMM) green veneer moisture measuring system.

Formica Corporation previewed its VIVIX exterior architectural panels at the recent AIA 2010 National Convention and Design Exposition in Miami. The company said it would be the only major branded North American supplier of a solid phenolic exterior grade product.

The IPPS (International Panels Products Symposium) Master Class takes place September 28-29, 2010, Bangor, North Wales, UK. The seminar series will cover key topics aimed at reducing production costs and improving quality within mills. www.bc.bangor.ac.uk

Wade Gregory has joined Flakeboard in Markham, Canada, as sales manager for its western region and is responsible for new product development and customer service for both the company’s Eugene MDF and Duraflake particleboard manufacturing sites.