2008 will long be remembered as the year when the global economic downturn, occasioned by the collapse of the US and European housing markets, encountered the global financial crisis. In many ways the two events were linked through the sale of toxic assets comprising dubious housing loans among the world’s banking community.
More than one year on and much of the world has experienced recession. It is fair to say that crisis and near-crisis conditions remain with us.
Inevitably, in the market conditions prevailing, the particleboard industry has suffered greatly. However, a little like the geographical impact of the economic crises, the performance of the particleboard industry has also varied by region and by country.
Part II of the 2009 survey of 2008 capacities, which covers the ‘Rest of the World’ outside North America and Europe, shows that aggregate world capacity grew by just 1.3% or 1.20 million m3 in 2008. North American/EU15 particleboard capacity declined by 2.3%. Their share of world capacity fell to just 46.9%, against 52.7% as recently as 2005. This is because capacity in ‘other Europe’, which includes Turkey and Russia, expanded by about one million m3 (+5.2%) and the ‘Rest of the World’ grew by 1.2 million m3 (+4.4%) to the end of 2008.
Capacity in the ‘Rest of the World’ at the end of 2008 stood at 28,507,000m3, compared with 27,290,000m3 at the end of 2007. However, even in these slightly more buoyant economies, we cannot even pretend that capacity represents production. There is evidence to show that capacity utilisation in Africa and South America in particular is running at uneconomic levels for many operators.
The listings of mills show fewer changes than has been typical in past surveys, with the major changes being the incorporation of the new mills opening during the year (reported one year ago in WBPI Issue 6, 2008/9) and one previously existing, but unrecorded, mill in a new country for the survey, namely Zambia. An Ethiopian mill is also shown for the first time but again this mill was reported in the 2008 survey as a new project.
The editor of WBPI and the author continue to extend their thanks and appreciation to all the respondents who took time to complete the enquiry form or to send their comments separately about new projects, closures and changes of ownership during the past year.
We recognise that even after several years our lists are not complete and nor do they always contain the most accurate information for some mills.
The timing of new lines, or plant modifications, which add to capacity can be difficult to confirm against originally announced schedules. This has become an increasing problem during the recent period. The problem of existing but previously unrecorded mills has a relatively small impact globally but can be significant on a regional basis. Adding them to the lists in any given year will show an apparent growth in capacity unless modifications are made historically. The ones shown in the 2009 survey have not been incorporated into historical data because their sizes are not very large.
There remains the ongoing problem in China with the large number of at least 200 small ‘village’ mills with local equipment. It may be possible to make an estimate of their true number and aggregate capacity for any given year but subsequent tracking of change is not practicable. The listings continue to show those existing and new lines incorporating foreign equipment.
The net effect of the changes is to show a position very similar to that reported 12 months ago, with 710 mills operating 795 lines globally. The forecast for 2010 suggests there will be 724 mills with 809 lines. This is a little down on the previous survey but there are some lines previously forecast which have been postponed or abandoned.

China
There have been no significant additions reported for China since the two larger continuous presses installed during 2007. Indeed there is little new activity reported thus far for 2009/2010. The Chinese particleboard sector is not as dynamic as the MDF sector – or even the plywood sector. Some of the newer mills have reported their intention to substitute the lower quality output of the many small units by offering superior quality and a wider product range.

North East Asia
2008 saw the biggest capacity changes for many years in this region when Japan Novopan and Okura brought on-stream their new lines for a combined total capacity of 545,000m3 per annum. Their motivation is to achieve cost efficiencies with what are the two largest lines in Japan. Both companies operate existing lines and it remains to be seen if they will close one or two of their ageing lines.

South East Asia
There are two main changes to last year’s survey forecasts. Firstly, Green River Panels opened its first particleboard line in Thailand at Hat Yai. Secondly, our report of the SPF mill in Palembang was premature and its capacity has been deducted from the South East Asian total (but it will appear again in the future!).

Other Asia
Despite the diversity within the region, there was no activity reported. There were a number of small changes made to the listings for existing mills, based on new information received.

South America
As reported in the 2008 survey, new announcements and significant changes planning. For more information readers can refer to Richard Higgs’ Focus on Latin America in the October/November 2009 issue of WBPI (No 5).
The two recent developments were the Duratex/Satipel merger and the acquisition of Tafisa Brazil by Cellulosa Arauco through its subsidiary Placas do Parana. Some 1,895,000m3 of existing particleboard capacity is involved in these transactions, as well as up to two million cubic metres in future plans.

Australasia
Capacity changes in this region remained very quiet during 2008. The region has been affected directly by global conditions and its export markets remain very sluggish.

Africa
Through the two new lines in South Africa recorded in the 2008 mill listings, Africa is seen to record one of the largest percentage gains in particleboard capacity of any region. The net effect is, however, affected by the closure of older lines by P G Bison in 2008 and will also be affected by Sonae’s reported intention to close a small line in 2009.

There is apparent growth in Africa because of the addition of the new mill in Ethiopia and the pre-existing mill in Zambia.
Average line capacity Tables 2 and 3 show the average line capacities in the ‘Rest of the World’ and North America/Europe. Some of the new lines have had the effect of raising average capacity in North East Asia and South East Asia. There is very little change noted for the other regions. Even so, average capacities in the rest of the world are considerably below those in North America and Europe. Indeed, EU15 average capacity increased a little during the year.
The total of lines between 100-199,000m3 per annum has fallen during 2008 because there was one closure and one correction to the listings.
Similarly for the 200,000m3 per annum lines, there was one correction to the listing which was in fact moved to the largest category. It is here where growth is most apparent. This total includes lines under construction but not yet operational. There is a 50% growth in numbers, which under-represents the actual capacity change because several of these lines are 500,000m3 per annum or larger.
Operators are concluding that if the finance and raw material are available, then build as large as is feasible. This is particularly true in those countries where there are old, small, mills operating over which the new mills can gain an economic advantage. The industry in most regions – including Europe, Other Europe and North America – are suggesting that extra-large mills will be the future model and closures of the older mills will follow.
Globally, there are eight lines coming on stream in 2009 or 2010 with capacities of 450,000m3 up to 750,000m3. Three of these are in the ‘Rest of the World’ and the remainder are in eastern Europe, Turkey and Russia. Their combined capacities amount to over 4.4 million m3.
There are 36 mills worldwide with capacities greater than 500,000m3 per annum. Five are in ‘Rest of the World’, two in North America and 29 in Europe/eastern Europe. Building big mills has, it appears, become the norm.

Future Capacity Changes
The ‘Rest of the World’ enjoyed capacity growth of 4.6% in 2008 and this will be at least maintained in 2009. Two large mills in Brazil, for Masisa and Fibraplac, aided by the SPF mill in Indonesia, will see 1.37 million m3 added to capacity during 2009 (+ 4.8%). It has been assumed that Sonae will close a line in South Africa. Although the volume gain in 2009 is similar to 2008, the number of projects is much reduced.
We still have no further details of the PT Novopan (Indonesia) mill bought by Segamat.

Beyond 2009 there are only two projects reported. They are both by Masisa: the ongoing expansion of its Montenegro mill; and a new mill in Chile. Therefore, capacity growth in 2010 and 2011 is virtually negligible, but aggregate capacity for the ‘Rest of the World’ may slip over 30 million m3 a year by 2011.
This event was expected sooner but the Duratex one million cubic metre per annum project has been shelved.
Berneck has also postponed or shelved its plans for a very large line in Santa Caterina, Brazil.
Following the Cellulosa Arauco purchase of Tafisa in Brazil, some of the small lines in Curitiba may be closed.
There has been no news of further developments in China. It is possible that, as China’s furniture industry places more emphasis on the domestic market, it may lead to a bigger demand for particleboard.
It is hard to believe that all the regions except South America will remain static during this time. Nevertheless, it is equally difficult to discern just at what point in the future companies will consider new mills and lines. The growth attained in 2008 and 2009 was the result of decisions made prior to the initial economic downturn in 2007 and the subsequent crisis in 2008. It will be a brave decision to commission new lines now which might come on stream at the end of 2010 or early in 2011.
As seen in South America, companies may use their capital and credit lines to embark upon mergers and acquisitions rather than create new greenfield capacity. This was a process European firms went through 20 years ago and Australasian and US firms within the past 5 to 10 years. Apart from South America there are signs of corporate activity in South East Asia, eastern Europe, Turkey and even in China.
One result of the economic conditions may be to give rise to an accelerated strategy of corporate consolidation. If the industry growth follows the trend in capacity growth then companies may find this unacceptable as a return on direct investment in new production. Mergers and takeovers, followed by rationalisation and modernisation, could well prove more attractive in the medium term.

It is our fervent wish that this year’s survey and report of particleboard capacity changes in Europe and North America will not be repeated for its illustration of the dire conditions of the current state of the industry. Since the 2006 survey, the declining fortunes of the industry have been reported with sadness and trepidation. The author and WBPI editor have felt like gloom-laden messengers from ancient Greek mythology.
While there is no natural law of continuing industrial growth, it had been hoped that the western European and North American particleboard industries could at least enjoy modest growth linked to the socio-economic fundamentals. These hopes have been dashed in the past two years and 2009/10 show little sign of recovery. That is not to deny the rest of Europe, and indeed other parts of the world, their own development.
The author’s personal observation of much of the commentary and reporting of the panel industry seems to be rather impersonal and somewhat unemotional. The riposte may be to use ‘objectiveness’ as a justification and that may be a worthy approach. However, the author has been analysing the particleboard industry around the world since the early 1970s and these are unprecedented times. Perhaps it is time for Europe and North America to hand on the mantel of market leaders to other regions. Perhaps it is an economic inevitability. Nevertheless, it is a structural change that deserves a little emotion.
At a time when ‘wood is good’ is the message being received, the particleboard industry – and the panel industry in general – has seldom faced such a range of hoops and hurdles to be negotiated just to stay in business.
The 2009 survey of particleboard capacity in 2008 shows that aggregate European and North American capacity declined by 0.2% during the year.
Europe declined by 0.7% and North America, principally the US, declined by 3.5%. This is despite the known expansions in certain sub-regions. These changes are measured among the mills still operating at the end of 2008. Some mills are closed, it is believed, indefinitely. Other mills are taking extensive closures and short-time working. For the sake of comparison their capacities are included at their full annual rating.
The data collected is by no means perfect and we remain aware of the possibility of under-recording a number of current mill’s capacities. This would have been true for 2007, but by leaving the data unchanged for 2008, a like-for-like comparison is possible.

If there were any lingering doubts about the division of the panel world into two principal regions, the results of the 2008 survey must dispel them. The original EU15 countries and North America have settled into the slow lane while the ‘Rest of the world’ is accelerating in the fast lane.
Total world capacity exceeded 90 million m3 during 2007, as predicted in last year’s survey; however, the EU15/North America region saw an actual reduction whereas the rest of the world, including Eastern Europe, grew by over 1.7 million m3 or 6.8%. The EU15/North America share of world capacity was 52.7% in 2005, yet only 48.6% in 2007.
By 2010 the estimate is that it will be below 45%. This is the result of the ‘Rest of the world’ becoming active in new mill building and EU15/North America not adding to capacity at all; 2009 capacity is estimated to be lower than 2005.
Capacity in the ‘Rest of the world’ at the end of 2007 was 27,352,000m3.
Readers will note there are more additions to the mill listings than just the new projects for 2007 reported last year. There are a number of hitherto unrecorded mills, as well as adjustments to 2007/2008 capacities offered by operators on the Intermark/WBPI enquiry forms.
Once again, the editor of WBPI, and the author, extend their sincere gratitude to all those respondents who took time to complete the enquiry form or send comments about new projects, closures or changes of ownership. In turn we apologise to any operators who believe they have been misrepresented (slightly) in the mill listings. There is a tendency in the industry to regard actual production as a mill’s capacity in any given year. This is particularly true when output is increasing and reference to ‘nameplate’ capacity is obviously erroneous. One effect of this on the survey results is to show a higher capacity utilisation – when compared with nameplate.
One further problem for the author is the handling of existing, but previously unrecorded, mills. To report them in the current year will give rise automatically to an apparent growth in capacity volumes and mill numbers. 2007 was such a year, as we were able to incorporate a number of mills with Compak equipment which were in operation before 2007. In the past there were attempts to modify the previous year’s data to avoid indicating unnatural growth in capacity volume and numbers of mills. This has not been undertaken in this year’s survey.
Accordingly, Table 1 shows the number of lines and capacity incorporating unrecorded mills and new mills.
The net effect of including these unrecorded mills (and adjustments to capacity made by existing operators) was to add only 132,000m3 to 2007 capacity. New start-ups on the other hand accounted for 1,630,000m3 and seven new mills.
Combining the results from Part I (WBPI October/November Issue 5), it can be shown there were at least 709 mills operating 795 production lines worldwide at the end of 2007. By the end of 2010 there will be 725 mills operating 811 lines – not really such a major increase in a global context and over three years. Given the current economic conditions, the industry may consider these additions more than adequate.
Table 1 also shows little change in the relative importance of the main sub-regions and countries although Africa has moved above ‘other Asia’ with the two new mills in South Africa.

China
Although only two new mills are shown for 2007, China retains its position as possessing the most capacity among the regions. Even so, it is one of the few major panel producing countries where MDF capacity exceeds particleboard. The two new mills, Yingang and Tangshan Fortunelin, installed relatively large mills (by Chinese standards) with continuous presses. There was also corporate activity, with the new owners of PTP acquiring Asia Dekor (the original mill name is retained in the listings). Keen readers will also note the new listing of four Compak mills which existed in prior years but were unrecorded.

North East Asia
There was little significant activity during 2007 although there were some small changes to existing lines in Korea. Dongwha remains the major operator in Korea – and possibly the region – as well as a significant MDF operator in South East Asia. The new Japanese mills are not due on stream until 2008.

South East Asia
The major events during the year were the opening of two new lines in Indonesia – PT Kutai Timber and Sumatera Prima Fibreboard. Otherwise the changes shown are the inclusion of previously unrecorded Compak lines in the Philippines, Vietnam and Indonesia. Like all Compak lines, capacities are small and they utilise, principally, non-wood raw materials.

Other Asia
One new start-up is recorded – Bajaj Hindustan in Pakistan – but there are also additional Compak lines in Sri Lanka and India. There is little follow-up information as to the success of the new start-ups in Iran.

South America
2007 was strangely quiet regarding new start-ups, other than Novopan in Ecuador. After the surge of a few years ago, the interest in particleboard appeared to wane because of the MDF projects of the main players and a softening in the market. The US housing downturn from quarter three of 2006 may also have affected decision making. However, 2007/2008 will be notable for the significant new project announcements which will be described later but were alluded to in last year’s survey.
Australasia
In several ways this region mirrors events in Europe and North America. There are a number of corporate activities, but
production capacity remains unchanged for the most part.

Africa
The new lines for PG Bison and Sonae have been shown for 2007 even though commercial production for one may not have commenced until early this year. The expansion in capacity provides uplift for the whole continent.

Average line capacity
Tables 2 and 3 show the average line capacities in North America/Europe contrasted with the ‘Rest of the world’. Despite several new larger-scale mills being installed, there has not been a distinct impact on average mill sizes, except in Africa, where the number of mills is relatively small. Canada and Other Europe saw measurable increases in average line capacity with most new lines being large scale (plus 59,000m3 and 18,000m3 per annum respectively). The incidence of ‘capacity creep’ appears to have changed somewhat from a year ago, when it was not in evidence in the ‘Rest of the world’. Returns from North East Asia, South East Asia and South America suggest modifications to achieve 3-4% increases.
Table 4 shows the increase in the number of mills with capacities of 100,000m3 per annum and above. All the seven new installations were of at least 100,000m3 per annum, with four of them either of 200,000 or 300,000m3 per annum.
Equally revealing is the number of lines over 500,000m3 per annum being projected. From 2008 there are nine new mills with over 500,000m3 per annum capacity: three in South America, one in western Europe, three in Turkey and two in Russia. The aggregate of these lines is 5.6 million m3, which is an average of well over 600,000m3 per annum! Once again, given the economic conditions, it can be speculated as to whether any of the projects will be postponed.

Future capacity changes
For 2007, the ‘Rest of the world’ saw a slightly inflated rate of capacity-building over 2006, at 6.8%. Overall, 2008 and 2009 will be rather more muted, at about 2.2% per annum. 2010 will see a return to at least 6% growth. As shown in table 5, the number of new projects (as reported rather than rumoured) is relatively meagre, at nine. The Green River project in Thailand was delayed until early 2008. Both Japanese mills are due, as is a small project in a new country, Ethiopia.
Segamat of Malaysia has acquired PT Novopan, previously reported closed. It is reported Segamat will refurbish and restart the mill in 2008. (No capacity data is available).
The gains made by South Africa will be ameliorated by the closure of two older lines by PG Bison amounting to 213,000m3 a year. Last year it was reported that Eucatex, Brazil, announced the largest project in the ‘Rest of the world’. Soon afterwards, two larger projects were announced, by Masisa and Duratex, both in Brazil, of 750,000m3 and 1,000,000m3 per annum, respectively. If achieved, this would propel Brazil’s national capacity to 5,249,000m3 per annum – fifth largest in the world at today’s levels.
However, as we went to press, Duratex announced it was delaying its project due to the global financial crisis.
These announcements would have lifted South America above South East Asia to account for 7.5% of world capacity.
It would appear that, after 2008, particleboard capacity in Africa, Other Asia and Australasia will become stable. The reality may be quite different, especially in ‘Other Asia’, where India especially may see further projects.
Table 6 summarises the changing world aggregate capacity as well as each principal region/country. There has to be doubt regarding the projection of 100 million m3 capacity by 2009. Even so, growth after 2007 to 2010 will be about 7.8%, or just over seven million m3.
Very specially, Russia, Turkey and Brazil will lead this growth and account for 83% of that predicted so far between 2007 and 2010.
What is revealing is that of the twelve sub-regions/countries, at the time of writing, nine would seem to possess static particleboard capacity from either 2007 or 2008 for at least two further years. ‘Other Europe’ and South America will be the most dynamic. These regions seem to have the best access to raw material (with the obvious exception of Turkey).

Understanding this Survey
It remains our philosophy to publish the information in our possession as it becomes available rather than wait in the hope of a really comprehensive listing.
Therefore, various gaps exist – though fewer than last year – for which we thank contributors from the industry, equipment suppliers, associations and consultants.
Mill capacity is, where possible, reported according to the operators’ own estimates. Where we have no estimate, there could be a reference list with a daily capacity. This has been grossed up by 330 days to provide annual capacity in thousands of cubic metres (m3) per annum. Where information is available for each line, this has been given. In some cases, we have provided details of more than one line per mill but published only total capacity.
The country total capacity is based on the sum of the capacities we have provided. Where there are too many gaps, however, the country total according to other sources has been used.
Capacity changes have been taken either directly from the survey results according to the mills’ own forecasts, or from published announcements of new lines which were available to WBPI.
Once again, we doubt if the future capacity changes are entirely reliable because, firstly, full information regarding modifications to existing lines is not available and, secondly, we might have missed some of the new announcements or closures. We hope to correct the listings with each subsequent survey.

Regarding particleboard capacity in North America and western Europe, never has our headline phrase been more appropriate. The 2008 WBPI survey of particleboard capacity reveals that for North America and the EU15 countries, capacity in 2007 increased by just 0.4%. Overall capacity in the entire region including eastern Europe and Russia increased by 4.6% or 2,769,000m3 – entirely located in eastern Europe.
The macro-economic parameters
governing North America and the EU15 were not at all conducive to expansion activities in particleboard and, in fact, contributed to a virtual paralysis of
the industry.
The analogy of the Western Front in Europe in World War One is quite apposite; the industry has almost reached the stage of ‘trench warfare’.
There are small forays forwards, matched by various retreats, but the strategic picture is stagnation. However, for the protagonists – those in the trenches – it has been (and will be for a year or so) a hard slog to ‘keep their feet out of the mud’ and to avoid ‘sticking their heads over the parapet’!
As tables 1 and 3 show, the actual number of protagonists is declining as well. This has had a marked effect in Canada where, as shown in table 2, average line size has jumped to the highest level of all regions involved. This is the result of the combined effect of four line closures and the new large installation at Sonae Tafisa’s Lac Megantic mill.

North America
There have been no reported changes during 2007 for the US and Mexico. Indeed, there is no reported ‘capacity creep’ either. The US saw a one-third drop in housing starts compared with 2006 (and as recently as July 2008, housing starts were at a 17-year low).
With major uncertainties as to future fixed and variable costs of particleboard production, the industry has no low-risk options, other than to stay in the trenches for the time being.

EU15
There was a 0.5% increase in capacity recorded in this region for 2007. Within EU economic growth, this represents a retrenchment – hardly surprising given the poor economic performance of several of the major economies during the year, which has continued during 2008 and is likely to worsen into 2009.
2007 (and 2008) has seen particleboard prices at variable cost levels as demand slackened swiftly in some of the leading consuming countries. Without offering a diatribe on housing recession, credit crunch, slowing exports and an increasing share of imports, suffice to say these factors have not helped.
During 2007 in the EU15 there was more talk of mill closures than there was of new projects. The UK accounted for virtually all of the capacity growth that there was in the EU15.

Other Europe
Capacity in the rest of Europe (‘other Europe’) grew by 16.7% during the year with new mills coming on stream in Russia, Romania, Lithuania and Slovakia.
The latter was the most notable for being the first major project in this region
incorporating the Shanghai Wood Based Panel Machinery Company’s (SWPM) continuous press. This, naturally, was at
a Kronospan site, since Kronospan
owns SWPM.
There was little change in Turkey – other than a slight downward revision in capacity, principally because of statistical adjustments. About 1.25 million m3 of new particleboard capacity was opened in Russia, which consequently became the fourth largest producer in the world behind China, Germany and the US.

Future Capacity Changes
The combined capacity of North America and the EU15 will decline during 2008 by 2.2%, or nearly one million m3, as shown in tables 5 and 6.
Table 5 is unusual in that it shows, for the first time, no effective increases in capacity for two consecutive years in North America. The industry seems to have no new projects for particleboard in the pipeline and neither does it report very much in the way of capacity creep.
Adjustments to existing lines could have a small impact on unit fixed costs but variable costs are the real problem.
Extra production could impact gross sales values but where is the demand? There seems to be a tendency (noted in previous years) for operators to attempt to increase panel unit value. This takes the form of surface finishing, cutting-to-size and low-emission boards, for example. There are rewards, pitfalls and challenges in this strategy as well.
However, medium to long-term, if managed adroitly, it affords a more secure option – if such a word can be used at this time!
At the end of 2007, Flakeboard in North America announced suspension of production at one line in Albany. The line is not dismantled and is still shown as existing in 2007 and 2008. With little or no prospect for a market reversal in 2009, this line may yet close permanently, which would mean a loss in capacity of 180,000m3 per annum.
Among the EU15 mills there is only one major new line – at Egger, Rambervillers in France, but three smaller lines will close, resulting in a neutral impact on French total capacity.
Closures will also occur at Genk, Belgium and Cella in Spain.
However, on a more positive note, Kronospan’s mill at Bischweier in Germany will add a net gain of 206,000m3 per annum, while the Saviola mill at Viadana in Italy will also make a net gain, with press changes, of about 100,000m3 per annum (see WBPI Aug/Sept 2008, p46).
Overall, though, EU15 capacity will decline by about 200,000m3 per annum.
More worrying is that there are no reported gains for 2009. Why will this come about? It is sufficient to cite Spain as an example.
In 2006, Spain saw a record of 920,000 dwelling starts being made. During 2007/08, such starts will fall to 300-500,000 units. This volume drop is greater than the total number of housing starts in several EU15 countries such as the UK, France or Germany.
It might be early to make such a prediction but it is not likely that EU15 will ever regain its share of regional, or even world, capacity. EU15 capacity in fact looks set to remain sluggish for at least five, and maybe even 10, years.
Table 7 shows the upward march of the other European country capacities – Turkey and Russia in particular. The size of the new Turkish mills is surprising, given the acute raw material situation in that country.
Table 8 illustrates clearly the future role of ‘Other Europe’ in the Western World’s particleboard industry. Time will tell if Russian and Turkish advances are too bold.

How the Listing was Compiled
The WBPI listings for 2007 (2006 figures) were reviewed and modifications made using other published sources and data received directly from the mills. Published information was reviewed for news of capacity changes. These sources included relevant trade magazines, association reports and equipment suppliers’
reference lists.
Self-completion enquiry forms were
distributed to the mills, requesting current and future capacity data. These forms contained the information the mills provided the previous year. Other questions were asked about non-standard production, future production rates, price movements and cost changes. The form was also posted on a special website. Responses amounted to 61% of the North American industry and 31% of existing European capacity.
The mills’ own reported capacities are used wherever possible because this is the basis upon which they make their estimates of future capacity and production changes. Where this information is not available, published sources are used, usually on the basis of 330 operating days per year.
Conversion of ft² to m3/year is made with 1,000 ft² equal to 1.77m3.