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management report market report pfleiderer ag 15
Wood Processing Industry
The wood processing industry in central Europe comprises several big private enterprises,
which operate internationally, and a large number of smaller suppliers. For several years now,
the industry has been going through a process of consolidation, in particular engulfing smaller
companies which only operate on a regional basis. The merging of markets throughout Europe
has accelerated this process. Cost leadership, an international approach and comprehensive
product ranges are the decisive factors today for the competitive edge of market participants.
Following an extraordinarily good year for the engineered wood industry in 2000, particleboard
capacity grew in 2001 by 0.5 million m3 to 36.5 million m3 among member countries
of the European Panel Federation (EPF). However, growth in 2001 was largely due to restructuring
within the industry, involving closures, re-starts, production expansions and greenfield
investments. According to the European Panel Federation, Germany and Italy were the most
heavily affected, with three production plants closing in each country. Only four (Austria, Czech
Republic, France and Spain) of the 19 member countries reported growth in capacities.
The following figures clearly illustrate the concentration process within the engineered
wood industry: in 2000 there were 177 production plants producing raw particleboard for the
market, each with an average production capacity of 210,000 m3 . By 2002, this figure had
dropped to 158 plants, with an average production capacity of 250,000 m3 . As far as medium
density fiberboard (MDF) suppliers are concerned, however, market growth has been reflected
in production capacity. The number of MDF production plants in Europe grew from 48 with an
average capacity of 185,000 m3 , to 54 plants with an average capacity of 210,000 m3 in 2002.
When examining these figures, it must be remembered that production plants in the key countries
for engineered wood (Germany, France, Italy, Spain, Belgium and the U.K.) have much
higher capacities than those plants located in smaller markets.
According to the European Panel Federation, continuous market growth marked by an expansion
in production capacity is now at an end. For the first time, the EPF expects a decline
in production by 1.5 percent to a total of 36.0 million m3 in 2002.
Raw particleboard accounts for 72 percent of European production capacity, making it
the most important base material, followed by MDF with 22 percent and oriented strand board
(OSB)/plywood with 6 percent. Due to the many ways in which MDF board can be worked
compared to raw particleboard, this material has found greater acceptance in the engineered
wood market over the last two years. Consumption of MDF increased by 10 percent from
2000 to 2002, while particleboard fell by 4 percentage points during the same period.