Panels & Furniture Asia January/February 2018

MICA (P) No: 138/05/2017 • ISSN: 0219-5704 • KDN: PPS 1453/11/2012(022879) • www.panelsfurnitureasia.com • JANUARY/FEBRUARY 2018

GREEN RIVER BUILDS SEA’S LONGEST PB LINE SCHEUCH ASIA: THREE YEARS ON SAN LIM’S SEARCH FOR INNOVATION THE WORLD WANTS WALNUT

CONTENTS

14 4

EDITOR’S NOTE: Inspiration

PANEL MANUFACTURING 14 Next generation entrepreneurs 18 New Sandvik Quickdisc enables ‘biggest ever’ belt repair at Arauco 20 Green River to build third PB line, featuring SE Asia’s longest continuous press FURNITURE MANUFACTURING 24 To infinity and beyond 28 How robots will win over the future

24

IN PERSON 30 A life partner for clean air technology 34 Interview with James Xu, National Hardwood Council, Shanghai Timber Trade Association

38 MATERIALS 36 Hardwood Market Report 38 WWW: The world wants walnut STRUCTURAL ELEMENTS 40 One of these is different from the rest 43

SHOW PREVIEWS

52

SHOW REVIEWS

COLUMNISTS 62 Wood Clinic 64 The Malaysian MDF Manufacturers Association Newsletter 65 Global Wood Resources 66

CALENDAR OF EVENTS

68

ADVERTISERS INDEX

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

40

2018

4th Edition

25 – 27 June 2018 Shanghai, China

by Panels & Furniture Group

ASIA’S SPECIALISED WOOD MATERIALS WOOD PRODUCTS TRADE SHOW

ORGANISER

CO-ORGANISER

Shanghai Pablo Exhibition Co., Ltd.

Shanghai Timber Trade Association

ENDORSED BY

French Timber

American Hardwood Export Council

American Softwoods

Softwood Export Council

Canada Wood

Thai Timber Association

www.sylvawoodexpo.com

Malaysian Timber Council

APAThe Engineered Wood Association

National Hardwood Lumber Association

4

EDITOR’S N O T E Singapore MICA (P) No. 138/05/2017

panelsfurnitureasia.com Editor | Lee Zhuomin zhuominlee@pabloasia.com Assistant Editor | Pang Yanrong yanrong@pabloasia.com Assistant Editor | Sarah Si sarahsi@pabloasia.com

Lee Zhuomin | Editor

INSPIRATION LOOKING back, 2017 felt like it never happened and yet it did. It was hectic, and fruitful and fulfilling at the same time. For us, it marked a couple of milestones, from posting our first photo on Facebook to launching the new Wood in Architecture Asia. It was a year of many firsts for our industry too.

Towards the end of last year, Green River Panels signed a new particleboard line with Siempelkamp, featuring Southeast Asia’s first ContiRoll Generation 9. At 50.4 metres, it is the longest in the region (p. 20). Tenants will soon move into JTC Launchpad @ one-north, Singapore’s first light industrial building made from engineered timber (p. 40). (The building was completed in 2016.)

We also looked back at some of our learning experiences. Sylva Wood launched three years ago amid some skepticism… The show turned out to be a success and is now into its fantastic fourth year this June (p. 46).

Similarly, when Scheuch Asia started its regional office in Bangkok, things were hard at first. It is now very well-established and has clinched some big projects in the region (p. 30). It can’t have been easy in the beginning, as with every new baby, but this is what business is all about—taking risks.

In the hardwood market, James Xu from the National Hardwood Council says things have more or less calmed down. The market has stabilised and is now revving up for trade once more (p. 34). In the U.S., sawmills are also poised for a good year as conditions seem favourable for solid results in 2018 (p. 36).

In the end, we may have lost quite a bit of sleep to jetlag and flight delays while chasing down stories. But there is nothing like being right at the centre of the action and witnessing history made before you. We hope to inspire you with more fun facts and cool stories in the year to come. Also, don’t forget to like us on Facebook and Instagram if you haven’t already!

CONNECT WITH US: @panelsfurnitureasia

Contributing Editor (Surface & Design) Kenn Busch | kenn@kennbusch.com Deputy Executive Editor (Chinese Edition) | Wendy Wei pabloshanghai@163.net Graphic Designer | Edwin De Souza edwin@pabloasia.com Admin & Circulation Manager | Shu Ai Ling circulation@pabloasia.com General Manager, Pablo Beijing & Shanghai | Ellen Gao pablobeijing@163.com Associate Publisher | Pamela Buckley pamela@pabloasia.com Publisher | William Pang williampang@pabloasia.com

Panels & Furniture Asia is a member of

3 Ang Mo Kio | Street 62 | #01-23 | Link@AMK Singapore 569139 Tel: (65) 6266 5512 E-mail: info@pabloasia.com Company Registration No: 200001473N All rights reserved. Views of writers do not necessarily reflect the views of the Publisher. No part of this publication may be reproduced in any form or by any means, without prior permission in writing from the Publisher and copyright owner. Whilst every care is taken to ensure accuracy of the information in this publication, the Publisher accepts no liability for damages caused by misinterpretation of information, expressed or implied, within the pages of the magazine. All advertisements are accepted on the understanding that the Advertiser is authorised to publish the contents of the advertisements, and in this respect, the Advertiser shall indemnify the Publisher against all claims or suits for libel, violation of right of privacy and copyright infringements. Panels & Furniture Asia is a controlled-circulation bi-monthly magazine. It is mailed free-of-charge to readers who meet a set of criteria. Paid subscription is available to those who do not fit our terms of control.

Please refer to subscription form provided in the publication for more details.

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Panels & Furniture Asia is the official publication of Malaysian MDF Manufacturers Association

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

6

NEWS

FAO: GLOBAL WOOD PRODUCTION GROWTH ACCELERATES GLOBAL production of major wood products surged in 2016 for the seventh consecutive year with a growth rate of three to six per cent, according to new data published by the UN Food and Agriculture Organization.

The fastest increase in major wood products (industrial roundwood, sawnwood, wood-based panels, wood pellets) occurred in Asia-Pacific, North America and Europe driven by positive economic growth, new manufacturing capacities in Eastern Europe, particularly for particleboard and Oriented Strand Board (OSB), as well as growing demand for bioenergy.

"Globally, production of all major products gradually recovered in 20102016 from the economic crisis of 20082009," said Mats Nordberg, FAO Senior Forestry Officer. "In 2016, the growth pace in the wood sector doubled compared to the previous year, and this positive trend is likely to continue through 2017-2018 due to global economic development and higher demand for renewable energy."

PARTICLEBOARD AND OSB PRODUCTION GAINS MOMENTUM Global production of particleboard and OSB commonly used in furniture

manufacturing and construction saw the fastest growth among all wood product categories. Particleboard production growth rate soared from 0.3 per cent in 2015 to eight per cent in 2016, whereas global production of OSB grew by 10 per cent last year compared to a seven per cent increase in 2015. The surge was mainly triggered by new mills in Eastern Europe, including the Russian Federation, as well as increased production in China and North America.

Russia has recently overtaken Canada and Germany to become the world's third-largest producer and consumer of wood-based panels after China and the USA. Canada saw doubledigit growth in production and exports of wood-based panels in 2014-2016 thanks to increased sales to the U.S. due to a recovering economy and housing market. China registered the sharpest surge of 42 per cent in production of wood-based panels between 2012 and 2016.

"A rapid growth in wood-based panel production means storing more carbon for longer periods compared with other wood product categories such as pulp and paper or wood fuel.

This contributes to reducing carbon emissions in the atmosphere. Another positive trend is the increase of recycled

Medium density fibreboard in a factory in Vietnam

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

wood used in panels which also prevents carbon release," said Nordberg.

WOOD PELLETS BOOM CONTINUES The production of wood pellets has increased dramatically in recent years to meet bioenergy targets set by the European Union. In 2016, global production grew by another six per cent, reaching 29 million tonnes, more than half of which was traded internationally.

Europe and Northern America accounted for almost all global production (58 per cent and 32 per cent respectively) and consumption (81 per cent and eight per cent respectively).

An increase in the United Kingdom's and the Republic of Korea's imports and consumption by 0.7 million tonnes accounted for the increase in the global consumption and imports due to the national renewable energy policies in these two countries.

Consumption of wood pellets in Asia increased by 17 per cent. The Republic of Korea became the third largest wood pellets importer after the UK and Denmark, driving up wood pellet production in Vietnam, Malaysia, Indonesia and Thailand. Imports of wood pellets also rose in Japan and China. ℗

NEWS 7

ANDRITZ SUCCESSFULLY STARTS UP MDF LINE IN THAILAND INTERNATIONAL technology Group ANDRITZ has successfully started up Panel Plus’ second MDF line based in Hat Yai, Thailand.

The pressurised refining and chip washing system supplied by ANDRITZ is the centrepiece of the line. It has a capacity of 30 bdmt/h and low specific energy consumption, as well as excellent reliability. The chip washing system using the ANDRITZ sedimentation technology is the first of its kind to be delivered to Thailand and will be used mainly for sand removal.

The scope of supply also includes a maintenance-friendly ANDRITZ C-Feeder that ensures low energy consumption, higher system stability and longer refiner plate lifetime.

Teams from both Panel Plus and ANDRITZ celebrate MDF Line II’s successful start-up.

Headquartered in Bangkok, Panel Plus MDF Co. Ltd. was established in 1990 and is a leading producer of particleboard, medium-density fibreboard and melamine-faced papers

for the production of wear and water resistant panels.

The project adds to ANDRITZ’s success in Southeast Asia, now with over 10 references in Thailand. ℗

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8

NEWS

CHINESE STUDENTS REIMAGINE THE NATATORIUM IN TIMBER DESIGN COMPETITION HOW about jumping into a pool and coming up for air under a wood-framed roof? This year’s Chinese University Timber Structure Design Competition challenged students to re-enact that experience—to design a swimming complex that would wow the judges.

The competition, organised for the second time, was held in Nanjing Tech University on Nov 19. Liu Weiqing, vice principal of Nanjing Tech University delivered the opening remarks and welcomed participating teams and all judges. He also acknowledged Canada Wood China for its strong support for the competition.

T h e co m p e t i t i o n re co g n i s e s excellence in wood design and encourages the academic body to explore wood as a structural element for their projects. The competition also provides a platform for talented students who would, in future, go on to further their career in wood design.

Eric Wong, managing director

Southeast University came in first place at the second Chinese University Timber Structure Design Competition

of Canada Wood China, said he is looking forward to seeing more student participation and learning about wood-frame construction.

Canada Wood promotes the Canadian lumber industry around the world. It supports programmes favouring wood

construction, which will in turn increase export opportunities for Canadian lumber.

The first prize went to the team from Southeast University. Tongji and Nanjing Tech University came in second and third respectively. ℗

UAE HOUSING BOOM TO DRIVE WOOD MARKET GROWTH WITH over 25,000 homes being added to the UAE’s residential market this year, the wood and furniture market is likely to witness solid growth.

Wood and wood products are expected to get a solid boost from the $2.4-trillion worth of construction activities, especially when new home owners start purchasing furniture and interior décor accessories, industry experts say.

In the Middle East, 70 per cent of timber and wood products are used in construction; the rest are used in real estate, interiors, furniture and other industrial applications.

With an average spend of $2,722 on wooden products per home, this translates to $68 million spent this year in Dubai alone.

However, with more than 35,000 residential units slated for delivery in 2018, spend on wooden products is expected to jump 40 per cent to January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

$95 million, according to a report released ahead of the Dubai WoodShow.

"The growth in the housing market will drive the wood, wood-related and timber business across the region and this creates a great opportunity for the industry," said Dawood Al Shezawi, CEO of Strategic Marketing and Exhibitions, the event's organiser.

"As families move into their new homes, they will require a fresh supply of furniture. Most families will look for authentic wooden furniture and products – wherein lies the new demand."

Al Shezawi said in order to capture the lucrative UAE market, more than 300 exhibitors from 100 countries are all set to showcase their innovative solutions at the next edition of Dubai WoodShow, which will showcase new designs, style and product innovation on managing home space in innovative ways.

The demand for wood products is also expected to be driven by new hotel

projects.

"Dubai will add 40,000 hotel rooms and service apartments to meet the growing demand of tourists as part of the build-up to the Expo 2020, which is less than three years away," stated Al Shezawi.

Dubai’s hotel sector has more than 100,000 hotel rooms and serviced apartments. By October 2020, Dubai will need to have a strong hotel inventory of 140,000 hotel rooms and hotel apartments.

“As we speak, a number of hotel operators are floating tenders for wooden beds, tables and wooden interior products to offer greater comfort to hotel guests. This is going to be a great driver of demand for wooden products,” he added.

The Dubai WoodShow will be held from March 12 to 14, 2018, at the Dubai World Trade Centre. ℗

NEWS 9

WOOD IMPORTS THROUGH TAICANG EXCEED 10 MILLION CBM FOR THE FIRST TIME WOOD products coming through Taicang Port rose 27 per cent to 10.29 million cubic metres between January and November 2017, exceeding the 10 million mark for the first time according to the Taicang Entry-Exit Inspection and Quarantine Bureau.

Log volume soared 41 per cent yearon-year to 7.26 million cubic metres; sawn wood volume was up 10 per cent to 3.04 million cubic metres.

Canada, New Zealand, Russia, Australia and the USA were the top five suppliers, accounting for 93 per cent of total imports through the eastern Chinese city.

Shipments from Australia more than doubled. Imports from America increased 83 per cent; from New Zealand, 73 per cent; from Canada, 10 per cent. Russian

imports, however, fell three per cent.

Timber imports through Zhenjiang Port also rose 18 per cent to 1.15 million cubic metres as at end November, fueled by shipments from New Zealand, Australia, Canada, the USA, Uruguay, Japan, Estonia and Guatemala. The main species imported were Radiata pine, Douglas fir, Caribbean pine, Japanese

cedar and Hoop pine.

Zhenjiang, a city in Jiangsu province, is also a major hub for wood processing.

The Xinminzhou Industrial Zone, a major industrial park, was recently completed.

It covers over 300 hectares and was specifically built for the timber sector.

Source: ITTO

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10 NEWS

SARAWAK: ALL TIMBER CONCESSIONS MUST BE CERTIFIED BY 2022 SARAWAK is making it mandatory for all timber concessions to obtain forest management certification by 2022.

The new law will be rolled out with a phased approach and calls for industry stakeholders to commit to sustainable forestry management. Previously the requirement was only implemented on a select few, Sarawak’s Deputy Chief Minister YB Datuk Amar Haji Awang Tengah Bin Ali Hasan said. He made the announcement at the second Global Timber Conference in November.

He said, “We are also set to reduce our reliance on the natural forests for raw materials to feed our timber mills.

Towards this end, we are investing in R&D for a viable and robust industrial forest estate in the state.

“My Ministry is setting clear directions and committed to the strengthening of our enforcement to combat and eliminate illegal logging activities.”

The State Government has also strengthened the Sarawak Timber Legality Verification System (STLVS) by

providing a formal standard to include independent third party verification to ensure compliance of the legality requirements in accordance with the laws and regulations of Sarawak.

Datuk Amar, who is also Sarawak’s second minister of urban development and natural resources, added that full implementation of STLVS will effectively address issues raised by environmental groups, especially from the European Union, pertaining to the legality of timber and timber products sourced from the state.

The national timber certification scheme, Malaysian Timber Certification Scheme (MTCS), is one of the 37 certified endorsed schemes under the Programme for the Endorsement of Forest Certification Scheme (PEFC).

MTCS is an internationally recognised scheme and is the first in Asia Pacific to have accorded international recognition through its initial five-year endorsement by the PEFC Council in 2009. It has also been re-endorsed in July 2014 for another five-year period.

To date, more than 4.66 million hectares or about one-third of the total permanent reserved forest in the country has been certified under the MTCS. This is equivalent to 9.6 per cent of 44 million hectares of the total certified tropical forest in the world.

The MTCS was also recently accepted by the Dutch Public Procurement Policy, opening up greater opportunities for ‘Made in Malaysia’ timber and timber products to enter the European Union market.

Malaysia’s timber and timber products exports was valued at RM22.1 billion in 2016. This accounted for 17.9 per cent of the total export earnings by the commodities sector and almost three per cent of total export earnings.

Exports from Sarawak accounted for approximately 27 per cent of Malaysia’s total timber export, reaching RM5.9 billion in 2016. Timber products is a key industry for the economy, providing 150,000 direct and indirect jobs. ℗

2017 NHLA ANNUAL CONVENTION BRINGS HARDWOOD INDUSTRY TO NASHVILLE T H E National Hardwood Lumber Association held its 120 th Annual Convention & Exhibit Showcase from Oct 25 – 27 in Nashville, Tenn.

The Convention brings the hardwood i n d u st r y to get h e r to fo r m n e w partnerships and strengthen existing ones. It kicked off with a reception with 1,150 hardwood industry professionals, representing more than 464 companies and 14 countries.

The opening session on Thursday, Oct 26, saw John Foley, former lead solo pilot of the Blue Angels, outlining steps that organisations and leaders should take to change culture, avoid complacency, manage problems and achieve success.

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Members also celebrated 30, 50 and 75 years of membership with NHLA including a 100-year member, Robbins Sports Flooring located in White Lake, Wisconsin.

The second day featured the General Session and Town Hall Meeting where seven new members were elected to the NHLA Board of Managers.

Yugon Kim, founding owner and partner of IKD discussed the benefits of building with cross-laminated hardwood timber. Following Mr Kim, award-winning speaker and author Eric Chester provided insights on the lack of labour in the forest products industry and provided ideas and strategies for finding and keeping great people.

There were also presentations on family business relations, emerging markets of thermally modified hardwood and a panel discussion of tomorrow’s global markets presented by the American Hardwood Export Council.

The NHLA Grading Rules Open Forum also proposed hardwood lumber grading rules changes for 2019. NHLA Active Member companies will receive a ballot in the next 30 days to vote on the proposed rules changes. Results will be published and announced, and any changes to the NHLA grading rules will become effective January 1, 2019.

The next NHLA Annual Convention & Exhibit Showcase will be held Oct 2 – 4 in Toronto, Canada. ℗

NEWS 11

PANELS & FURNITURE GROUP More than just a magazine, Panels & Furniture Group of Wood Magazines delivers world-class stories from the global timber and woodworking sector.

We bring you analyses that power trends and shape opinion in the market.

With an extensive network, we connect you with the timber, panel and woodworking sector in Southeast Asia and Greater China through our titles: Panels & Furniture Asia and Panels & Furniture China.

Our readership is also made up of architects, builders, designers and engineers. They will find ideas and resources that inform their next big project in construction and fit-outs through Wood in Architecture.

Every year the group publishes American Hardwoods SEA and American Hardwoods China. The annual periodical is a resource on U.S. hardwoods and reaches all of Asia.

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12 NEWS

DOMOTEX ASIA/CHINAFLOOR 2018 NOW OPEN FOR REGISTRATION THE annual flooring show now invites visitors to register for the 2018 event, held from March 20 to 22. 2018 also marks the 20 th anniversary and to celebrate, 100 over pre-registered visitors will be given signature VIP access to conferences and festivities during the show.

The show saw a 20 per cent increase in number of international visitors in 2017, of which the top five countries were: South Korea, Japan, the United States, India and Australia.

“I expect our 2018 global visitor registration and attendance to exceed the previous edition’s results,” Shine Liu, project director of VNU Exhibitions, said. “The event continues to be the industry’s key meeting point in Asia and the international flooring community is noticing. We have signed on new international pavilions (Croatia and Iran) and hope to organise more country pavilions to join the ranks of Canada, Germany, Switzerland, the UK, USA and Italy.”

Highlights include:

InnovAc on

The InnovAction Flooring Campaign empowers carpet, wood and resilient flooring enterprises to launch new products within custom showcases.

These flagship pavilions are designed

by Kostas Chatzigiannis and his team at KCArchitecture Ltd. Companies looking for an ideal platform to introduce their products in the industry will have the opportunity to reach over 55,000 visitors at the upcoming show.

Sport Flooring Experience

In the next few years, Asia will host some of the most important sporting events in the world. The 2018 Asian Games in Indonesia, 2018 Winter Olympics in South Korea, and the 2020 Summer Olympics in Japan will all require new, state-of-the-art sporting facilities.

DOMOTEX asia/CHINAFLOOR 2018 is following suit and organising experience zones for companies specialising in sport flooring. The sport flooring area

DOMOTEX Asia will run from March 20 to 22 this year

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will host a Badminton Tournament on a 200sqm pitch of artificial sports turf, a Snow + Ice Experience Zone, and open the China Green Campus Construction Forum to visitors interested in discussing the future of green and eco-friendly surfaces with municipal governments, sports bureaus and school associations.

Luxury Brands

VIPs and invited guests can visit Luxury Brands, a distinct display area presenting 15 renowned carpet design firms who indulge visitors with a variety of new, extravagant products. Luxury Brands is co-organised and sponsored by COVER Magazine, a key partner of DOMOTEX asia/CHINAFLOOR. ℗ To register: www.domotexasiachinafloor.com

14 PANEL MANUFACTURING

NEXT GENERATION ENTREPRENEURS What does the future of panel manufacturing look like?

The answer may be found in the young managers of Thailand’s Metro Ply Group.

t 28 and 26, Rangsinee and Kanatuch (Ekky) Piyasombatkul represent a new generation of plant managers in Southeast Asia that will one day take ownership of their family’s wood business.

Growing up, they were taught riches do not endure forever and a crown is not secure for all generations. They visited the factory frequently, the value of hard work, discipline and responsibility woven into the fabric of their nature at a very young age.

That this has always been in their DNA meant Ekky “never really thought of anything else except to step into the role,” he says.

“My father is a very serious man and a personal motivation for me. He would say ‘no one is going to support you, you have to support yourself and be the family leader one day.’”

Stepping into the world of wood panels with no experience or credibility— and expected to manage it one day—is a mammoth task. The learning curve is steep and there is no hand holding.

The second of three children, Ekky manages the particleboard and flooring products business. He started learning about machines first, from staff who have worked in the factory for decades. In the meantime, he also made the effort to get to know them and their families.

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Cousins Rangsinee and Kanatuch (Ekky) Piyasombatkul have been tasked to manage their family’s panel business, and one day grow it beyond its current capacity.

PANEL MANUFACTURING 15

His cousin Rangsinee is in charge of Advanced Fibre, the Group’s fourth and newest MDF line. The second of five children, she returned to Thailand after graduating with a degree in mechanical engineering from Imperial College London in 2011.

“Our parents were part of that generation that struggled from nothing into something. It was always part of the plan that we continue what they have built,” she says.

She started shadowing her father at meetings and through careful observation, grew to understand the panels business on a deeper level.

Subsequently, she found her place in the massive conglomerate. In 2015, when the Group decided to build Advanced Fibre, it was like starting from the beginning again. This time, armed with experience, things began to make more sense. She was involved in the negotiations and personally saw the project from start to finish.

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16 PANEL MANUFACTURING

“I saw how my general manager dealt with suppliers, how different machinery came together, how boards are produced successfully and how to sell them,” Rangsinee shares. As she gained experience, people also started to ask for her opinion, she adds.

EVERY PART IS IMPORTANT T h e M et ro P l y G ro u p p ro d u c e s plywood, and owns four MDF and three particleboard lines. Its fourth and newest MDF line, Advanced Fibre, is

The factory stresses safety and cleanliness for the benefit of employees.

But there is also a practical reason behind this culture. Firstly, for machines to work at optimal level, they need to fit like a jigsaw. And for that to happen, excess residue and saw dust must be removed, “otherwise you have to hit the stop button and clean for hours. It’s not a job you outsource to a cleaning lady, it’s a lot of headache and it wears d o w n y o u r p e o p l e ,” R a n g s i n e e emphasises.

It is one of the reasons why the factory was serious about having a good dust extraction system to reduce downtime and workplace accidents.

Ekky adds, “Scheuch is the innovator in this field. The office* in Bangkok is an advantage. We never thought we’d have a local contact where we could drop in anytime.” The best thing he likes about the partnership, he says, is communication.

“Machines will always cause you problems but if a supplier has set his mind

Dust extraction system delivered by Scheuch

a highly-automated, high speed thin board line. It features a 28-metre long CPS+ continuous press and equipment from Europe.

Advanced Fibre has a total annual capacity of 240,000m 3 . It sources rubberwood and some eucalyptus from the southern and eastern parts of Thailand.

Building began in early 2016 and the first board was commissioned on July 4, 2017.

The 2mm MDF boards are now exported worldwide and mostly used in indoor furniture.

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The smallest component, she adds, makes a huge difference to the plant. For example, dust extraction systems and fibre sifters are often overlooked as vital elements for success. But it helps create a clean environment that allows the factory to produce panels efficiently.

She says, “People always see the press as the main star. At commissioning, it gets the most attention. But I don’t think any part is insignificant or secondary because in the end they all help production run smoothly.”

to solve that problem, it will be solved.

The best companies are not the ones that make good machines. They are the ones that help us along the way as well.”

Yet it did take some convincing for the company’s shareholders to agree to a premium suction solution since most of them are not technically involved in the factory’s set-up. But the engineering team persevered.

“We are not a newcomer that dismisses machinery as ‘unnecessary.’

We are operating on European standards

PANEL MANUFACTURING 17

now. We want the best of the best because we will have to live with the decision for the next few decades,” Ekky says.

KEEP GROWING Today both Ekky and Rangsinee have come a long way from Day One. There have been good days and poorer moments but at the end of it, they say it’s about learning on the job, coming back from failure, fixing mistakes, going to bed and waking up again, ready to face another day.

Rangsinee also runs Pink Berry with her older sister on the side. Although frozen yoghurt and wood have nothing in common, she was able to apply her management skills to the franchise business.

“Be it frozen yoghurt or any field, our parents want us to stand on our own feet and be decision makers,” Ekky says. As a hands-on person, he spends most of his time in the factory, giving him little else to think about.

*Advanced Fibre is Scheuch’s first direct sales since it opened its regional office in 2015. It is located in downtown Bangkok and headed by Managing Director Andreas Köck. The Austrian technology company has served the Southeast Asian market for decades and is no stranger to many plant managers in the wood-based panel industry here.

Part of the Advanced Fibre factory in Kanchanaburi Some key equipment featured in Advanced Fibre

There is also a sense of accomplishment that comes from being recognised for small milestones, such as successfully operating machinery, merging old practices with the new, building a team and managing it.

The journey does not end with them as middle managers for their parents want them to be entrepreneurs—an undertaking that meant their experience at the bottom was essential.

“You cannot hope to rise to the top without first knowing how things work at the very basic level,” Ekky explains.

“In the end if you are always seeking their approval, years down the road no one will be telling you what the right decision is.”

Meanwhile, the company is now planning ahead, filling up plots of land to prepare for a day the board of directors decides to build another line.

The next few years will see both cousins improving the line’s efficiency and growing the business, realising the very destiny they were meant for. ℗

Energy Plant

Buettner

Forming line, pre-press, continuous press, star cooler

Dieffenbacher

Dust extraction system

Scheuch

Refiner

Andritz

Sanding machines

Steinemann

Finishing line (cut-to-size saws, handling equipment)

Anthon

Chemical preparation

IMAL

Thickness gauge and blow detector

GreCon

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

18 PANEL MANUFACTURING

S

Damaged press belt on a particleboard line restored to health.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

teel belt manufacturer Sandvik recently used its new QuickDisc Plus tool to complete its biggest ever patch repair project: removing and replacing a 480mm diameter area of a damaged press belt for a particleboard plant and restoring it to perfect working order.

The work was carried out for Arauco at its particleboard plant in Bennettsville, South Carolina, USA. It was done with such expertise that no trace of the repair could be detected.

This is the first time the Sandvik QuickDisc Plus 500 was employed for a ‘live’ repair since it was launched at LIGNA 2017. Arauco’s maintenance team was delighted with the result.

PANEL MANUFACTURING 19

“We are highly impressed with the outcome of the QuickDisc patch repair,” Will Altman, maintenance supervisor, said at the Bennettsville facility. “Our concern was that the amount of welding required would cause a deflection in that area or an ‘oil can’ effect and possibly affect heat transfer.

“However, since starting up, there’s no indication of a repair. There are absolutely no marks or halos or anything visible on the board.”

The repair was carried out

by Sandvik service partner Conny Neumayr. It involved the replacement of an area that had previously undergone several repairs.

“Multiple repairs concentrated around a single point creates t e n s i o n s a n d u n e v e n n e s s ,” ex p l a i n e d N e u m ay r. “ T h e s e distortions make the area more susceptible to cracking after each repair.”

Anders Köijer, Sandvik’s Global Product & Service manager, said, “Arauco is the second largest panel producer in the world and has invested heavily in the North American and European markets in recent years. Our role as a belt supplier is only part of the story. We are also there to help them maximise the quality of their end-product and the longevity of their belts.”

He added, “Service is now a key differentiator and we’re committed to taking the lead in wood-based panels.

Today, with the market moving towards ever thinner boards – produced at speeds up to 2000 mm/sec – the need for near perfection in belt quality is increasing. We will continue to invest in the technologies necessary to deliver the high standards.” ℗

PROFESSIONAL SERVICE AND REPAIR Sandvik’s QuickDisc Plus 500 is a self-contained cutting, welding and grinding system based on a single jig that attaches itself to the belt.

The press belt at Arauco is 2.7mm thick and made from a high strength Sandvik 1650SM grade steel ideal for harsh conditions.

The first stage in the process was to remove the damaged area using the automatic carbide cutter. This is replaced using a disc cut from the extra length of belt supplied together with all Sandvik press belts for the purpose of repairs.

The cutter is then replaced in the jig by a track-welding unit that ensures accurate, semiautomatic replacement of the disc. Once welding is finished, the weld area is ground down and the repair, complete.

The work at Arauco took about two hours once the equipment had been set up, a major saving compared to the over 10 hours it can take to cut and replace an entire belt width with an inserted section.

T h e d e ve l o p m e nt o f t h e QuickDisc Plus 500 has extended Sandvik’s service and repair capabilities, an area the company recognises as being of prime importance.

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

20 PANEL MANUFACTURING

G

reen River Panels is set to build Southeast Asia’s biggest particleboard plant, boasting a 50.4-metre continuous press—the longest in the region. The new line, which is Green River’s third, will see the company double annual production capacity to over one million cubic metres, making it one of the largest production powerhouses in Southeast Asia. It will be delivered by Siempelkamp.

“The negotiations took a long time but I believe that this agreement will provide a lot of value for us. We have known [Siempelkamp] for more than 10 years,” said David Huang, chief executive officer of Green River, at the signing ceremony in Hatyai witnessed by representatives from both client and vendor.

“All eyes will be on Green River for this project,” Mr Philipps said. Addressing the Green River team, he added, “Your project has our personal attention and like a marriage, we welcome open and frank communication between both parties.”

Although Green River is no stranger to Siempelkamp’s expertise, this is the first time it is working together with the Krefeld-based technology company on such a massive scale. (PB Line 1 runs on Buettner's drum dryer while Line 2 uses size reduction technology from Pallmann.) Never before has the Taiwanese-owned company sealed such a historic contract, marking a significant milestone for itself and a benchmark for the panels industry in Southeast Asia.

team were single-minded about Green River ’s commitment to producing green products. (Green River is named for the company’s environmental philosophy.)

Waste from rubber plantations and wood that is too poor for solid furniture often end up in the backyard of a particleboard line, which makes the panel product ‘green,’ and “I am sure there will be a demand for these panels in future. I believe Siempelkamp can support us in our vision for a green production line,” Mr Huang says.

He looks fitter than when I last saw him three years ago, younger than all his 57 years. Yet, he is still the visionary businessman, steady and consistent, making calculated moves before planting resources in the right places.

The particleboard producer’s latest decision banks on the belief that Asia is overflowing with oppor tunities, which makes now a great time to invest in a new line.

Jurgen Philipps, speaker of the Siempelkamp Management Board, added, “We are happy and honoured to be selected for this project. This is our second success in three months in Southeast Asia. It is a good sign as it shows we are considered a market leader in this area.”

The new line also sees Siempelkamp delivering its first ContiRoll Generation 9 continuous press to Asia. It will also feature machinery by its subsidiaries: Buettner, CMC Texpan and Pallmann.

Together the engineering team will build the biggest drum dryer and energy plant in Southeast Asia as well as the world’s biggest knife ring flaker.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

The first board is expected to birth in the last quarter of 2019.

BIG, BIGGER, BIGGEST The upcoming line is based in Trang, Thailand, over 200km away from Green River’s headquarters in Songkhla. It is one of the best fits for a particleboard line. Thailand’s south is mostly agrarian, providing an ample supply of rubberwood to feed the factory. It is close to various ports of call where products can easily be shipped worldwide.

On the decision to seal the a g r e e m e n t w i t h S i e m p e l ka m p , Mr Huang said he was pleased that the management and engineering

He doesn’t stop, it appears.

Decisions keep him busy and discussions with European suppliers often see him working late into the small hours. But being busy is a good thing, he jests, “otherwise the business is not moving.”

The green field investment was conceived over two years ago, even before the second line was fully operational. Mr Huang says the planning phase involved a lot of research and consulting. It was a slow and long-drawn process, but necessary.

Green River’s move to increase production capacity comes at a time where industry insiders observe a difficult future for panel plants—first

Jurgen Philipps, speaker of the Siempelkamp Management Board (left) and David Huang, CEO of Green River Panels.

By Lee Zhuomin

an oversupply situation, followed by a lack of raw materials. But this does not bother Mr Huang. After all, these trends are cyclical, almost normal.

Instead, he is looking forward to Asia’s bullish furniture market buoyed by a slow but sure rising middle income class among the region’s four billion people. As standards of living improve, so will robust buying, especially that of ‘green’ products—the very thing Green River offers. Rather than wait, he is keen to capture this potential before others do.

“When we examined the numbers, Asia’s demand for boards per capita is still lower compared to Europe. However, this will change in the future. Demand will go up; the outlook in the long run is positive,” Mr Huang says.

Mr Philipps presents a model of the ContiRoll to Mr Huang at the signing ceremony in Hatyai on Nov 28, 2017.

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

22 PANEL MANUFACTURING

SUCCESS IN THE MAKING Green River’s ambitious plant will no doubt be another challenge for Siempelkamp, which unveiled its star engineering feat, the ContiRoll Generation 9, at LIGNA 2017. However, Mr Philipps is confident of delivering on his service promise: “We are aware of potential problems, what can happen during installation and we have the right people to support the project,” he says. “So we will put this puzzle together and deliver [results] for Green River.”

Siempelkamp has supplied more than 350 continuous presses around the world since 1985. What is heartening for the company too, is that Green River has not only signed for the core equipment—that is, the pre- and continuous press, and finishing line—but the whole suite of innovations. Other machines for the new line also include the new EcoDrive, SPC and SicoScan measuring equipment—all launched at LIGNA last year.

As the furniture industry trends towards a preference for particleboard, both Mr Huang and Mr Philipps have high hopes for the market. And being on the same page marks the beginning of good things to come, as Mr Philipps concludes, “We are definitely very pleased to be part of Green River’s success story.

“We started great and got along very well. We will continue to bring this spirit of cooperation into the engineering and installation phase.” ℗

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

"

T nego a ons took The a long me but I believe that this agreement will provide a lot of value for us… I believe Siempelkamp can support us in our vision for a green produc on line.

"

- David Huang, CEO of Green River Panels

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

24 FURNITURE MANUFACTURING

To infinity and

beyond

T

he relationship between WEINIG and San Lim Furniture traces back to more than two decades ago when San Lim Furniture (San Lim) purchased their first WEINIG machine for their factory in Indonesia.

But it wasn’t until two years ago when Tony Sulimro, president of San Lim, and Antonius, his son and deputy general director, started investing more in their machinery, that the furniture manufacturing company became one of WEINIG’s biggest customers.

For San Lim, the choice was not a hard one to make. “For the people in the furniture industry, if you're looking for good machines in the solid wood area, WEINIG would be the one.

This is no secret,” Antonius said.

DECISIONS, DECISIONS, DECISIONS San Lim was established 15 years ago in 2003. The company is based in Dong Nai province, Vietnam, and does mostly panels such as veneer, plywood or MDF for its furniture, using species such as poplar from the U.S., rubberwood from Vietnam, and pine from New Zealand or Chile.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

San Lim Furniture is constantly in search for innovative ways to improve their production line. Their search ended with WEINIG, which provided the furniture manufacturer tremendous benefits: improved efficiency, cost reduction and impeccable service.

“Our export market in the past was 100 per cent to the U.S. But right now, it's about 95 per cent to the U.S., and about five per cent to China,” Antonius said. Some of San Lim’s clients are well-known brands such as Ashley, Rooms to Go, WSI, American Drew, Holland House, Klaussner and Haverty’s.

As of March 2017, the company ships an average of 600 containers per month and is still dedicated to continuous improvement.

“This is not by luck because we make sure we keep our quality good,” said Antonius.

With a score card now given to most manufacturers in grades of A, B, C and D, San Lim sees it as a benefit for them as it reflects on how the company is doing.

For instance, business owners and top management are able to look at the score cards and place orders with companies who are scoring well.

FURNITURE MANUFACTURING 25

Top: (From left) Antonius Sulimro, deputy general director of San Lim Furniture, and Tony Sulimro, president of San Lim Furniture; Bottom: High performance crosscutting with WEINIG OptiCut

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

26 FURNITURE MANUFACTURING

WEINIG is able to train staff at San Lim Furniture with the ins and outs of their machines to build a seamless production line

“It takes time and it ’s about consistency,” said Antonius.

About five years ago, a customer initially gave them a D, but over the years, San Lim has worked hard to overturn the score. “And within that period of time, we improved ourselves and actually became an A-grade vendor,” Antonius explained.

The result also reflects the different demands of the customers and the trend in the industry such as fast turnaround time with better quality.

“Customers are paying more attention to quality as well as punctuality in shipping,” said Antonius. “There is also a trend now where customers are

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

requesting for lesser MOQ (minimum order quantity),” he added.

For instance, “In the past, when we said the MOQ is 100 pieces, they’ll agree.

But now, we have customers requesting for 50 pieces or fewer,” said Antonius. “If we do not use the CNC machine, we’ll have to use the jig all the time, which will result in a longer downtime.”

The increase in workers’ salary each year is also another challenge that San Lim is facing. With higher costs and the need for faster turnaround and punctual shipments, the furniture manufacturer needed to look into a long-term solution to address these challenges.

PICKING WEINIG “WEINIG is a good brand. There are a lot of similar machines that are 50 per cent cheaper but because we are focusing on quality, we believe the investment in WEINIG machines will help us achieve that,” Antonius explained.

“We used WEINIG machines 25 years ago for our factory in Indonesia. Those were the simple ones then. For the current advanced machines, we bought it two years ago and have since started buying more,” Tony said.

San Lim attended WEINIG tour for the first time at the LIGNA show in 2015.

During the tour, the team was taken to factories in Tauberbischofsheim (TBB), Germany, where they were offered a behind-the-scenes look of the production lines in factories that were using WEINIG machines.

Demonstrations were done to showcase clear advantages and the potential of the machines while providing a platform for everyone to exchanges ideas.

“Before the show, they were already explaining to us how we can link up the different machines together and when we saw it for ourselves, we said ‘Yes, this is definitely what we need’ and bought it,” said Antonius.

The team has since been on two tours and each time it further affirms their belief in WEINIG.

FURNITURE MANUFACTURING 27

With customers’ demands becoming more complicated and stricter, the need to digitalise has increased.

“With manual machines, it can take about a year before a person is trained to be good in handling a specific machine.

But with WEINIG CNC machines, you can just put in a panel and press the ‘Start’ and ‘Stop’ buttons. That's all. It doesn't take much effort.”

GOING THE EXTRA MILE The recognition and commitment WEINIG has to San Lim and all its customers is reflected in its after-sales service.

Based in Dong Nai, San Lim is generally located far from the city, offices and help. But the company is still able to acquire help from WEINIG’s engineers to train staff on the ins and outs of their machines and to equip them with the necessary skills.

In fact, engineers from Germany were flown over before too to provide assistance.

The furniture manufacturing company is in constant contact with WEINIG – from installation to maintenance to advising on the production flow – such that it is always equipped with valuable practical knowledge for seamless production that helps reduce costs.

For instance, after the wood has been cut into smaller pieces, the WEINIG Powermat can be used to smooth the sides before the finger joints are placed in.

“This is what WEINIG taught us on how the flow needs to be. And so, we always coordinate with them,” Antonius explained.

Another example is the Rondamat tool grinding machine. By connecting it to the Powermat, it will assist in adjusting the position of the tool. After grinding, the tool becomes shorter, which the computer will then send the data to the Powermat to adjust the height; since it's shorter, the height needs to be lowered to produce the same product.

“We do not need to do a lot of trial and error anymore as the computer does everything. We saw how this process was done at LIGNA and so we bought the whole package,” said Antonius.

As San Lim continues to hit their milestones, WEINIG will be steadfast by their side, challenging themselves to help San Lim to be even more efficient and productive.

“We have a good relationship with WEINIG and they are one of our most trusted partners,” said Tony.

Be it solid wood or panel processing, the leading provider of solid wood processing machinery is there to ensure that San Lim is able to fully exploit their machines’ power and operate them to perfection. ℗

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

28 FURNITURE MANUFACTURING

T

oday, the end-consumer’s demand for customised furniture is what’s making up most of the orders. The number of furniture per order has also gone down, forcing factories to shift from mass manufacturing to producing in small batches instead. At the same time, the industry has had to deal with labour shortage, increasing costs and the need for process stability.

These trends have beleaguered manufacturers all over the world; those that have not reacted quickly enough have paid dearly, driving some into bankruptcy.

For others,

By Bjorn Henseler, Schuler Consulting concepts such as automatic Production Data generation (so-called Industry 4.0) and automated Business Processes have finally found their way onto the management’s agenda. It is a good thing, but this is only half of the story.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

How robots will win over the

future Malaysia’s furniture industry players spent a day at ABB to understand how robotics can facilitate challenges in production.

FURNITURE MANUFACTURING 29

ABB, a robotics company, in Subang Jaya, Malaysia

ROBOTS ARE THE FUTURE A panel furniture factory consists manufacturing processes like Cutting, Edge banding, Drilling, Packing with Material Buffers and in between these, other “Work in Progress.” For example, to make things easier, we can automate transportation between two machines.

Within the buffer, we can also automate the handling at a certain machine or cell.

Compared to a high tech factory that operates without these buffer areas, we cannot afford to give up on them compared to a perfectly balanced production line with fully automated transportation and little variations in product types.

Manufacturers today require a highly flexible plant that can be adjusted to build any type of furniture or design that pops up on the blueprint. Balancing the initial changes seems impossible. But where can we go from here?

To answer this question, ABB, a pioneer in automatic industrial robots,

and Schuler Consulting rounded up some manufacturers and suppliers for a seminar in Subang Jaya, Malaysia.

The task was to discuss struggles in furniture manufacturing with the robotics equipment supplier and share some of the solutions applied in other sectors such as automotive or consumer electronics that deal with a variety of parts and processes.

During the seminar, ABB also discovered how much variety the furniture industry works with. It suggests that if robots are to handle Batch Size One products, the technology required should be visual recognition systems achieved using cameras.

Notably, using robotics in furniture making is not entirely new. For example, loading CNC machines with robots or handling devices, cutting complicated chair shapes out of 3D forms, applying lacquering in throughfeed lines as well as packing are some processes currently operated by robots in Asian factories.

INTEGRATING HIGH-TECH SOLUTIONS In the region’s diverse furniture industry, standard robot programmes that operate the same task for prolonged periods are not feasible due to the number of different parts manufactured in a day. We need to move from manually programming robots all the time to one where automatic visual recognition can be done with cameras.

We need a robot programme that recognises parameters like “Length” and “Width”, one that is intelligent enough to address and adapt to swift production changes without much human intervention. This is not new in Europe where mobile pedestals for office desks are already being fully assembled in one production cell without involving any manual labour.

Only when Asian factories take bold measures to integrate high-tech solutions will they be able to overcome the challenges of today and those of the future. ℗

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

30 IN PERSON

Andreas Köck, Managing Director, Scheuch Asia

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

IN PERSON 31

A life partner for clean air technology

Scheuch Asia is now almost in

three years

Bangkok.

The

of fice may be new, b u t A n d r e a s Kö c k , m a n a g i n g d i r e c t o r, says the company is mor e than qualified to support Southeast Asia’s panel industry with technolog y for clean air.

B

angkok, or anywhere in urban Southeast Asia, is nothing like where he used to live, where the air is crisp and fresh, a luxury for the lungs. And yet moving to the bustling metropolis was his idea.

Three years ago, Andreas Köck saw that Southeast Asia would become one of the fastest-growing markets for exhaust systems and filters. His counterparts in the wood-based panel industry recognised this too and were swooping in quickly. It was obvious that Scheuch had to have a local office to match up with intense competition in this field.

He said, “I worked out the business plan for Southeast Asia and proposed someone willing to go there—me!”

At that time, the proposal was also in alignment with the company’s globalisation strategy. Scheuch was expanding worldwide and had just made two acquisitions in North America.

And Mr Köck was right. The decision was paramount to securing a foothold in the region. In just two years since the office opened, he had signed deals with most of the new panel projects here—six and counting. According to him, it was a combination of perfect timing and luck.

“All the investments in Thailand were coming up just as we opened so we were able to clinch most of these projects.”

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

An installation for a wood-based panel line in Thailand

32 IN PERSON

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

IN PERSON 33

In Thailand, Advanced Fibre, Metro Ply, Wisewoods and Vanachai have signed orders. A second ESP was delivered to Panel Plus last November. In Vietnam, both Dongwha MDF 1 and 2 are running on Scheuch fibre sifters; Kim Tin has also put in an order for filter systems. (Some older lines in the country still feature Scheuch systems and they are still being serviced with spare parts and advice.)

A GOOD START The new lines have been running for over six months and feedback is positive: high-performing filters, fans and rotary valves mean little or no downtime for maintenance, which means the factory can focus on its main goal—producing panels.

“It is definitely a good start,” Mr Köck says happily. “We are capable of offering our customers more, not just technical consulting but service as well. After all, they do demand a certain standard of service, which we are more than happy to provide. Our new service technician recently finished his training and is ready to start.”

The goal, he adds, is to work on a well-defined structure so that Scheuch can support the wood-based panel industry here on a daily basis. To up the ante, a fibre sifter expert from the company’s headquarters in Austria will pay a three-week visit to several MDF installations in the region. As panel production evolves overtime, the expert’s 25 years of experience will be more than necessary to address these changes.

The biggest sense of satisfaction for Mr Köck, however, was being able to convince plant managers to trust in Scheuch’s technology, “and if you do so, you will see the benefits.”

“In all my years in the panel board industry, you can say I sell kilogrammes of metal. But it is now a personal mission to tackle industrial waste emissions for the client, the people and the environment.

“With all the experience and products we have, I think we can give very good advice in this area. I’m really happy that we were able to convince one customer here to invest in a wet ESP system. My dream is to equip, one by one, all of these lines with the same.”

And it doesn’t take a lot to be convinced. The 42-yearold speaks with a kind of conviction that comes from a well of knowledge, 22 years to be exact. In his early twenties, he started as a shift operator in Kronospan, moved on to become production manager for an MDF line in his hometown and went on to Metso Panel Board as a process engineer before joining Scheuch in 2007. He worked graveyard shifts, put in long hours, travelled extensively and consulted for lines all over the world.

He has seen all and done much. He is warm, affable and comes with a matter-of-fact candor that makes you feel like you have known him a lifetime.

It is probably why the young office is so successful; the one helming it has all the credentials. More importantly, he is also serious about building long-term, meaningful relationships in a region that values exactly that.

INVESTING IN INNOVATION In hindsight, Mr Köck says that doing business here can be complicated and not always easy to understand, but that “if you can adapt, you will do fine.”

In fact, he is doing more than fine. From a one-man set-up in an 11sqm space, Scheuch Asia is now a family of five in a 100sqm office in Asoke.

Apart from supplying the wood-based panel sector, Scheuch also services the energy, metal and cement industries as well as those that require flue gas treatment systems. They have been in the air and environmental technology business for 50 years.

But considering the machine is still the same as when it was invented decades ago, exactly how innovative can such technology be?

Mr Köck laughs. It is a fact, but also a massive endeavour to stretch the equipment’s efficacy beyond limits. And here is where Scheuch has pushed through in product innovation to a degree of success. Building technology for clean air is their bread and butter after all. The company funnels huge investments towards research on maintaining—and in some cases, exceeding—machine performance at a lower cost.

“It is a tricky thing, being able to deliver quality at a lower cost. But we have done it, improved versions with the same service guarantee that we offer our customers.”

Indeed, while the fibre board has hardly evolved as a product, what has, is the machinery that makes it. Now, the modern lines are all expected to maintain longer uptime, run faster, and consume less wood and resin. Some of them are even being extended to produce value-added products, laminating, coating or printing for decorative panels and flooring.

MEETING MILLENNIAL NEEDS Today, children born in the 1990s—or the millennials—are young adults with high demands on standards of living for themselves and their children. Soon, there will be feedback on a panel’s carbon footprint—what are the environmental and health consequences from using this panel? In turn, this may translate into stricter controls on formaldehyde emission limits on the panel itself.

Mr Köck also works with some of them who have recently stepped up into their family’s panel business.

His advice for these young managers is to follow their heart, cliché as it may sound. “It is a huge responsibility stepping into such big shoes but I’m very sure they will find their way if they listen to the right people. There are so many different voices, you just need to sift through all of it and make your own decision.

“Then again, am I in a place to dish out advice?” he wonders.

He sure is, for he is a man who reflects often on what he has done for himself, his family, the company or community.

And he never stops working. When the office lights go out, the family comes in.

“You know kids, they keep this machine running all the time.” ℗

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

34 IN PERSON

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

IN PERSON 35

C

ompany relocations are considered rare in the timber industry but recently this has happened to Shanghai AM. It has moved a couple of times, first from downtown Shanghai to Kemao Road and then to Malu.

Heavy industries have moved out of Beijing, bringing some sunny days and fresh air this winter. The same is happening in Shanghai. As wood processing and trading enterprises are looking for new warehouses and factories, they are also trying to enhance efficiency by reducing inventory and increasing turnover. These reforms will improve the industry’s overall quality and efficiency, says James Xu from STTA’s National Hardwood Council.

Fortunately, the Yangtze River Delta region offers them modern port facilities and a well-developed transport network for doing business. These new industrial clusters in Taicang, Ningbo and Zhenjiang will bring about higher output value per unit area and new opportunities for the industry, especially as inefficient companies get eliminated in the long run.

PRUDENT BUYING According to the latest data from the American Hardwood Export Council (AHEC), demand for North American hardwood has been increasing. The hardwood market has calmed down from the instability and turmoil two years ago. Chinese traders are now more prudent and sensible, making fewer irrational purchase decisions in 2017, a great relief to some nervous American suppliers.

Under pressure from the government, up to 60 million square metres of factories were forced out of Shanghai in 2017.

As the Chinese gover nment continues to invest in high-tech industries, traditional industries have, to some extent, limited land use. What prospects are left for Shanghai’s timber trade?

By Wendy Wei

Black walnut and cherry rose in popularity while the popularity and price of FAS red oak fell due to oversupply.

These minor changes are driven by market forces; they are normal and will not upset the market as long as distributors remain prudent, says Xu. “Hardwood exports from the U.S. to China continues to climb while warehouse space for distributors is decreasing.

This means efficiency has increased considerably,” says Xu. “As far as I know, no enterprise undersold or withdrew from the timber market due to the new relocation and environmental protection policies.”

Nevertheless, Xu notes that market demand is on the rise and stability is of vital importance.

CHALLENGES Xu expects that market trends for this year will be similar to last year’s.

Viktor Leonldovlch Evtukhov, Deputy Minister of Ministry of Industry and Trade of the Russian Federation, said his ministry has imposed export quotas on unprocessed timber exiting Russia's Far East and increased export tariff rates since last December. According to the draft plan, export tariff rate of goods within the tariff quotas will be reduced from 25 per cent to 6.5 per cent but the additional export tariff rate will gradually increase to 40 per cent in 2019; to 60 per cent in 2020; and to 80 per cent in 2021. Export quotas apply to enterprises with wood processing plants or experience in exporting wood processed products. These policy changes will see fewer wood supplies from Russia, providing greater opportunities for North American wood traders to flourish in China.

However, data from AHEC indicate hardwood log exports from the U.S. to China have grown significantly. In the past, 80 per cent of logs were used for veneer processing, yet large quantities of logs are now sold to factories processing sawn timber.

It is hard to say what effect these observations will have on the market. But one thing is for sure: increased demand and reduced shipping rates will inevitably contribute to intense competition.

GROWING TOGETHER “Wood is renewable and environmentally-friendly. As people's living standards and tastes improve, wooden furniture will become more popular,” Xu says.

Although some have speculated that the home decor market will be affected as real estate reaches saturation, refurbishing old homes also require a large supply of wood, he adds.

As one of the earliest companies to distribute North American hardwoods in China, Shanghai AM is adept at tackling risks and crises. Xu says that only enterprises that take a longterm view on trends and cooperate to address crises can expect growth and development opportunities. This is one of the reasons the National Hardwood Council was established five years ago. The Council will continue to live out this purpose for members.

Xu concludes that the solution to rising costs is increasing inventory turnover as well as improving work efficiency.

Moreover, it is also important to build and maintain relationships with long-term suppliers and customers, and improve internal management, so as to enable the timber industry to develop smoothly. ℗ PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

36 MATERIALS

Hardwood Market Report

Business momentum for U.S. hardwood lumber to carry over B into 2018

By Judd Johnson, Managing Editor, Hardwood Market Report

1100

US Exports to China in 2017 are on Track to Exceed 1Billion Board Feet and Surpass 2016 Volume by 18%.

1000 900

2009 to Current: China's Growing Middle and Upper Classes Consuming US Hardwoods

Million Board Feet

800 700 600 500 400

1999 - 2006 US Furniture Manufacturing Shift to China and US Housing Boom.

2006 - 2009 US Housing Bust and Worldwide Economic Turmoil.

2009-2017 Export volumes pacing at an increase of 400%

300 200

1999-2006 Export volumes increased 760%

100

*Projected

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 *2017 Source: USDA FAS

Graph: HMR

Figure 1: U.S. exports of hardwood lumber to China

Percentage Share of Volume

usiness results for 2017 have U.S. suppliers feeling optimistic about 2018. Exports of hardwood lumber were trekking 13 per cent higher through the first 10 months of 2017 compared to the same period in 2016. The total volume shipped through October was the third highest of any full year (12 months); only 2016 and 2014 were higher. With two months remaining, there is little doubt U.S. hardwood lumber exports will establish a new record in 2017.

To no one’s surprise, China is the dominant force driving increased export activity. While total hardwood lumber shipments from the U.S. were up 13 per cent year to date, U.S. shipments to China had increased 18 per cent (see Fig. 1). Exports to China accounted for 54 per cent of the hardwood lumber volume exported by the U.S. worldwide (see Fig. 2). In fact, the 10 month total exported to China in 2017 surpassed the 12 month China record high set in 2016, reaching 2,026,233m3 compared to 2,006,701m3 (see Fig. 3).

U.S. supplier optimism goes beyond exports. The domestic U.S. marketplace has grown consistently over the past several years. Much of that growth is closely aligned with economic expansion.

After a period of retraction, markets for key industrial timber products have rebounded and are currently energised.

100% 90%

China

80%

Rest of world

70% 60% 50% 40% 30% 20% 10% 0% 2005

2006

2007

2008

2009

2010

2011

Source: USDA FAS

2012

2013

2014

2015

Figure 2: U.S. exports of hardwood logs to China and the rest of the world

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

2016

Graph: Hardwood Market Report

Jan Oct 2016

Jan Oct 2017

U.S. DOMESTIC MARKET Separately, the U.S. housing sector has been expanding at an impressive rate. New single family construction is projected to increase year over year by 10.7 per cent and 8.6 per cent in 2018 and 2019, respectively; these increases follow a 7.5 per cent increase in 2017. Also in 2017, expenditures on single family housing refurbishing projects surged 20 per cent over 2016 expenditures. Notably, new and refurbishing single family housing construction projects are significant to demand for hardwood flooring, cabinets, millwork, and furnishings.

MATERIALS 37

Hardwood Market Report

(Cubic Metres) 2,500,000

China

Rest of World

2,000,000

1,500,000

1,000,000

500,000

0 2005

2006

2007

2008

2009

2010

Source: USDA FAS

2011

2012

2013

2014

2015

2016

Graph: Hardwood Market Report

Jan Oct 2016

Jan Oct 2017

Figure 3: U.S. exports of hardwood logs

Not only is demand for U.S. hardwood lumber poised for further growth, U.S. sawmills may have better opportunity to respond to any business upturn in 2018. The reason is that demand is showing encouraging signs of improvement for wood waste materials, making them less of an impediment to sawmill production and lumber supplies.

Indeed, keeping bark, chips, and sawdust

moved offsite has been a problem for U.S. sawmills the last couple of years – enough to prevent production from reaching its potential in 2016 and to a lesser extent in 2017.

It is imperative that all sectors of the marketplace perform at healthy levels in order to ensure a healthy U.S. hardwood lumber supply base. Such has been the case for most lumber items, and now this includes industrial timber products and byproducts from sawmill production.

By and large, U.S. hardwood lumber business has been quite stable for most of the past two years, and conditions seem favourable for solid results in 2018. ℗

"

B and large, U.S. hardwood lumber By business has been quite stable... conditions seem favourable for solid results in 2018.

"

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

38 MATERIALS

WWW = The World Wants Walnut

Fashion in hardwood for furniture and interiors, often going in cycles, is wellknown. Cherry, maple, ash, mahogany, wenge and rosewood are all good examples of high value species that have come and gone over the years. But there are a few that stay the distance. Several species have endured long term in popularity. Now we are seeing walnut join that elite group.

By Michael Buckley

O

WHERE IT GROWS AND GOES First let’s define walnut. The main source of walnut in volume is in the USA where American black walnut (Juglans nigra) is exclusively native and grows in large volumes across the States from the east coast to Texas. The so-called European walnut (Juglans regia) was originally native to a stretch from Kashmir to Turkey

ak is one of those species that has remained popular throughout history. It is seen as traditional, ecclesiastical and associated with academia and wealth. Oak has stayed fashionable throughout time especially in western markets. Teak is another, particularly in eastern countries, for its durability. It is also associated with wealth. Walnut by contrast has come and gone in fashion over the years although it has never completely disappeared in popularity, as cherry did a decade ago.

So what is the driver of walnut these days that suggests its current popularity will continue long term? The answer is complex.

Estelle console table in American black walnut

by Commune.

Image credit: Commune.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

until introduced by the Romans to Italy and France as well as other European countries. The two species are different— in colour and grain—and whereas American black walnut is naturally regenerated in forests and planted a little, European walnut was mainly planted.

Then there are other substitute species such as African and Rhodesian walnut, so-called for marketing.

MATERIALS 39

Availability is a main driver. Limited supply and unquenchable demand in recent years have driven prices high, without the withdrawal of demand that normally follows. Take the case of cherry, for which prices peaked then halved when markets rebelled; but not so with walnut. Then there is China, where walnut is valued aesthetically along with many local similar hardwoods and Chinese buyers have discovered the “Well of Black Gold” in American forests.

Ease of travel and communication have accelerated the Chinese market for American walnut that appears insatiable.

Then there is taste. Culturally, traditional furniture making and particularly, chair making in China favoured dark wood species that are now rare. But not only China appreciates walnut. The 2017 furniture shows in Southeast Asia all featured many collections of walnut furniture from Saigon to Singapore. And the world’s hotel designers and fit-out contractors love it. Last but not least, walnut is a truly beautiful species that finishes to a very fine surface. So—www—the World Wants Walnut!

AVAILABILITY Is walnut sustainable? That is an interesting and probably unanswerable question, for how high will the price go and how much is growing? Neither of those questions are easily answered.

Whereas there is very accurate data now available for every commercial hardwood species in the USA, walnut is the exception. The forest inventory of walnut is well-known and published, but walnut unusually also grows naturally on and around farms that are not inventoried. Brian Brookshire, executive director of the American Walnut Manufacturers Association points out, “American walnut is one of the only species (maybe the only one) that the entire log is sawn as useable lumber, effectively stretching the utilisation of the limited resource for furniture, flooring and other uses, as compared to oak and other hardwoods where the centre of the log is generally left as a block for industrial uses.”

Furthermore, new techniques of cutting ultra-thin veneer can also extend the resource, so it is hard to say how the resource balance will develop in the future.

European walnut supplies are relatively patchy and not well-documented. However, American walnut supplies are transparent and readily available through several channels. The American Hardwood Export Council has many members offering walnut. There are importers and traders in China and elsewhere specialising in walnut. There is also the American Walnut Manufacturers Association whose 20 members specialise in supplying walnut. ℗

Craft coffee table in solid American black walnut by JotterGoods, Star International.

Image credit: Star International.

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

40 STRUCTURAL ELEMENTS

ONE OF THESE

IS DIFFERENT FROM THE

REST Block 81 at the JTC LaunchPad @ one-north is the only building within the campus built using engineered wood. It stands as a shining example of how wood makes construction quick, safe and efficient.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

STRUCTURAL ELEMENTS 41

N

ew technologies in engineered wood have proven to be safe and efficient in construction. Block 81 at JTC LaunchPad @ one-north is one example of this innovation. The three-storey engineered wood structure in Singapore was completed in four months and achieved 10 – 15 per cent manpower savings compared to conventional building methods.

This is possible because the glue-laminated timber and

cross laminated timber components are first pre-fabricated, then delivered on-site. It is also safer and less labour-intensive as only simple tools are required for assembly. It was one of the reasons why engineered wood was chosen, since there was already an existing community when Phase 1 of the 6.5-hectare site was completed, said Heah Soon Poh, assistant chief executive officer of JTC’s Engineering & Operations Group. Overall, it results in a cleaner work site, reducing noise and air pollution.

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

42 STRUCTURAL ELEMENTS

Block 81 is the first light industrial building in Singapore built using engineered wood

Block 81 is part of the Phase 2 of the JTC LaunchPad @ one-north, which offers plug-and-play spaces for start-ups. It is Singapore’s first light industrial building made from engineered wood. It is also one of the few wooden mid-rise buildings in Asia.

layer so that in the event of a fire, only that outer layer will be charred.

To minimise termite attacks, the first storey columns, beams and floor slabs are made of concrete. An additional steel mesh in the ground, treated to repel termites, also acts as a physical

"

Block 81 was completed in four months and achieved 10 – 15% manpower savings

Explaining how the team managed to learn methods in wood construction, Mr Heah shared that initial discussions with the Building and Construction Authority (BCA) led to a visit to Nanyang Technological University which was then building a new sports hall out of engineered wood. The hall features a 72-metre continuous roof, the longest in Asia.

“We also engaged one of our contacts from an overseas study trip to carry out a feasibility study using engineered wood systems,” he added.

BUILT TO LAST To enhance fire resistance, the beams and columns are designed to be 15 – 25mm thicker, forming a sacrificial

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

"

barrier. The CLT and glulam members on the upper floors were also treated against infestation. The engineered wood is made from PEFC-certified spruce, supplied by Austrian specialists Hasslacher Norica and KLH. The whole building uses about 450m 3 of wood.

SPEARHEADING PRODUCTIVITY This type of wood construction technique in Block 81 is part of a new approach known as Design for Manufacturing and Assembly or DfMA. This game-changing technology is akin to stacking up pre-fabricated components like a large Lego block.

It is transforming Singapore’s built environment, expediting construction times and reducing labour.

The move to adopt new technologies is part of Singapore’s overall push to get developers, contractors and planners to raise productivity levels on an average of 2 to 3 per cent annually till 2020, according to BCA. This will be driven by the use of advanced technology and a skilled and competent workforce.

In recent years, the city-state is at the forefront of wood construction technologies with new buildings springing up such as NTU’s new sports hall and the Singapore Sustainability Academy. A few other schools in wood are also in the construction pipeline. ℗

Developer

: JTC, Singapore

Architect, Structural Engineer, M&E Engineer

: WSP Pte Ltd

Main Contractor

: Lian Ho Lee Construction (Private) Ltd

Specialist Engineered Wood Consultant

: Ronnie & Koh Consultants Pte Ltd

Engineered Wood Sub-Contractor

: Venturer Pte Ltd

Completion Date

: December 2016

STRUCTURAL ELEMENTS 43 3(/7 2%6)%7

A ZONE FOR CUSTOM FURNITURE SUPPLIERS TO DEBUT AT CIFM / INTERZUM GUANGZHOU 2018 Set to take place in the southern Chinese city of Guangzhou, the upcoming CIFM / interzum Guangzhou is poised to outperform the last edition on various fronts with more brands, a wider array of products, and an expanded series of fringe activities.

C

IFM / interzum Guangzhou, set to take place from the 28th to 31st of March, 2018 alongside the second Ĺ?ĹśĆ?ƚĂůůžĞŜƚ ŽĨ ƚŚĞ ĹšĹ?ŜĂ /ĹśĆšÄžĆŒĹśÄ‚Ć&#x;ŽŜĂů Furniture Fair (CIFF), will be held at the sprawling China Import and Export Fair Complex, in Guangzhou, China.

More than 1,300 exhibitors hailing from more than 30 countries and regions such as Germany, Malaysia, Singapore, and the United States will be spread out across the 150,000m² exhibition Ć?ƉĂÄ?Äž Ć?ƉĂŜŜĹ?ĹśĹ? ĎǀĞ ŚĂůůĆ?Í— tĹ˝Ĺ˝ÄšÇ Ĺ˝ĆŒĹŹĹ?ĹśĹ?

Machinery, Upholstery Machinery, Materials and Textile, Fittings, and Components.

Simultaneously, eight country and Ä‚Ć?Ć?Ĺ˝Ä?Ĺ?Ä‚Ć&#x;ŽŜ ƉĂǀĹ?ĹŻĹ?ŽŜĆ? Ä¨ĆŒĹ˝Ĺľ 'ÄžĆŒĹľÄ‚ĹśÇ‡Í• ƚŚĞ United States and Canada, Turkey, French Timber, American Hardwood Export Council, Malaysian Timber Council, ĂŜĂĚĂ tŽŽĚ͕ ĂŜĚ YƾĞÄ?ÄžÄ? tŽŽĚ Ç†Ć‰Ĺ˝ĆŒĆš Bureau – also from Canada – will showcase wood materials, furniture hardware and Ĺ?ĹśĆšÄžĆŒĹ?Ĺ˝ĆŒ ĚĞÄ?Ĺ˝ĆŒÄ‚Ć&#x;ŽŜ ĹľÄ‚ĆšÄžĆŒĹ?Ä‚ĹŻĆ? Ä¨ĆŒĹ˝Ĺľ Ć?ŽžĞ Ď­ĎŹĎŹ Ĺ?ĹśĆšÄžĆŒĹśÄ‚Ć&#x;ŽŜĂů ĞdžŚĹ?Ä?Ĺ?ĆšĹ˝ĆŒĆ?͘ Global leading industry players already sent in their applications to Ć‰Ä‚ĆŒĆ&#x;Ä?Ĺ?ƉĂƚĞ Ĺ?Ĺś ƚŚĞ Ĺ˝Ç€ÄžĆŒÍ˛Ć?ĆľÄ?Ć?Ä?ĆŒĹ?Ä?ĞĚ ĞǀĞŜƚ͕ including Biesse, Homag and SCM, among many more.

Visitors can also expect a healthy Ć?ĹšĹ˝Ç Ĺ?ĹśĹ? ŽĨ ĹśÄžÇ Ä?ĆŒÄ‚ĹśÄšĆ? ĚĞÄ?ĆľĆ&#x;ĹśĹ? Ĺ?Ĺś ƚŚĞ ƾƉÄ?ŽžĹ?ĹśĹ? ĞĚĹ?Ć&#x;ŽŜ͕ Ĺ?ĹśÄ?ůƾĚĹ?ĹśĹ? ^ĂǀĞƉůĂÄ?Í•

Cossla, UNGRICHT, and Debo Europe.

DĹ˝ĆŒÄžĹ˝Ç€ÄžĆŒÍ• Ç Ĺ?ƚŚ Ć?ĹľÄ‚ĹŻĹŻÄžĆŒ Ä‚Ć‰Ä‚ĆŒĆšĹľÄžĹśĆš Ć?Ĺ?njĞĆ? Ç ĹšÄžĆŒÄž ĆšĆŒÄ‚ÄšĹ?Ć&#x;ŽŜĂů ÄŽĹśĹ?Ć?ŚĞĚ Ä¨ĆľĆŒĹśĹ?ĆšĆľĆŒÄž Ĺ?Ć? ƾŜĂÄ?ĹŻÄž ƚŽ žĂdžĹ?ĹľĹ?Ć?Äž space usage, the custom furniture market has been Ä?ŽŽžĹ?ĹśĹ?Í• ÄšĆŒĹ?ǀĞŜ Ä?LJ ĚĞžĂŜĚ Ä¨Ĺ˝ĆŒ Ä?ĆľĆ?ƚŽžͲžĂĚĞ furniture among those who are concerned with the Ä‚ĆŒĆš ŽĨ ĹŻĹ?Ç€Ĺ?ĹśĹ?Í• Ä?Ĺ˝ĹľÄ¨Ĺ˝ĆŒĆšÍ• ĂŜĚ ĞŜǀĹ?ĆŒĹ˝ĹśĹľÄžĹśĆšÄ‚ĹŻ Ä¨ĆŒĹ?ĞŜĚůĹ?ŜĞĆ?Ć?͘ dĹšĹ?Ć? ĚĞǀĞůŽƉžĞŜƚ ŚĂĆ? Ä‚ĹŻĆ?Ĺ˝ Ć?ĹšĹ?ĹŒÄžÄš Ä?ŽŜĆ?ĆľĹľÄžĆŒĆ?Í› focus to raw and auxiliary materials, such as wood ƉĂŜĞůĆ?Í• Ç Ĺ˝ĆŒĹŹĆšĹ˝Ć‰Ć?Í• ŚĂŜĚůĞĆ?Í• ĂŜĚ ĹšĹ?ĹśĹ?ÄžĆ? ĞǀĞŜ Ä‚Ć? ĹšĹ?ŜĂ͛Ć? ŚŽžĞ Ä¨ĆľĆŒĹśĹ?Ć?ĹšĹ?ĹśĹ? ĹľÄ‚ĆŒĹŹÄžĆš ĂŜĚ ĆľĆŒÄ?Ä‚ĹśĹ?Ć?Ä‚Ć&#x;ŽŜ Ä?ŽŜĆ&#x;ŜƾĞĆ? ƚŽ ÄžÇ†Ć‰ÄžĆŒĹ?ĞŜÄ?Äž ĆŒÄ‚Ć‰Ĺ?Äš ÄšÄžÇ€ÄžĹŻĹ˝Ć‰ĹľÄžĹśĆšÍ˜ dÄ‚ĹŹĹ?ĹśĹ? ĂĚǀĂŜƚĂĹ?Äž ŽĨ ƚŚĹ?Ć? Ĺ?ĆŒĹ˝Ç ĆšĹš ƉŽƚĞŜĆ&#x;Ä‚ĹŻÍ• Ä‚ Custom Furniture Suppliers zone will be launched Ä‚Ćš ƚŚĞ Ĺ?ĹśĆšÄžĆŒĹśÄ‚Ć&#x;ŽŜĂů ŚĂůů Ä‚ĆŒÄžÄ‚ ƚŽ Ĺ?Ä‚ĆšĹšÄžĆŒ Ç ÄžĹŻĹŻÍ˛ĹŹĹśĹ˝Ç Ĺś custom furniture suppliers from abroad with Ć‰ĆŒĹ˝ÄšĆľÄ?Ćš Ä?ĂƚĞĹ?Ĺ˝ĆŒĹ?ÄžĆ? Ä?Ĺ˝Ç€ÄžĆŒĹ?ĹśĹ? Ç Ĺ˝Ĺ˝Äš ƉĂŜĞůĆ?Í• ĚĞÄ?Ĺ˝ĆŒÄ‚Ć&#x;ǀĞ materials, furniture hardware, as well as upholstery and accessories. Custom furniture manufacturers, interior decor companies and interior designers Ä?Ä‚Ĺś ĹŻÄžÄ‚ĆŒĹś Ä‚Ä?Žƾƚ Ĺ?ŜŜŽǀĂĆ&#x;ǀĞ Ć‰ĆŒĹ˝ÄšĆľÄ?ĆšĆ?Í• Ä?ƾƍŜĹ?ͲĞĚĹ?Äž technology and the current trends in custom furniture.

During the exhibition, a dedicated cocktail ĆŒÄžÄ?ĞƉĆ&#x;ŽŜ Ç Ĺ?ĹŻĹŻ Ä?Äž ŚĞůĚ ƚŽ Ć‰ĆŒĹ˝Ç€Ĺ?ĚĞ Ä‚ Ć‰ĹŻÄ‚ĆžĹ˝ĆŒĹľ Ä¨Ĺ˝ĆŒ ĞdžÄ?ŚĂŜĹ?Äž Ä?ÄžĆšÇ ÄžÄžĹś ĞdžŚĹ?Ä?Ĺ?ĆšĹ˝ĆŒĆ? ĂŜĚ Ç€Ĺ?Ć?Ĺ?ĆšĹ˝ĆŒĆ?Í• Ä‚Ć? Ç ÄžĹŻĹŻ Ä‚Ć? ĞŜŚĂŜÄ?Äž Ç€Ĺ?Ć?Ĺ?ĆšĹ˝ĆŒ ÄžÇ†Ć‰ÄžĆŒĹ?ĞŜÄ?Ğ͘ Î&#x; • Issue 1 • *ANUARY &EBRUARY January / February 2018 PANELS & FURNITURE ASIA s )SSUE s

44 SHOW PREVIEW

2nd VIFA Woodmac Vietnam 2018: The woodworking show in the heart of Vietnam’s furniture cluster - Vietnam’s wood products export turnover expected to hit US$8 Bn in 2017 - Many factories eager to upgrade production to obtain more orders - New pre-event technical seminar series to capture the right audience Date

: Oct 24 – 27, 2018

Venue

: Expo Binh Duong, Binh Duong Province, Vietnam

V

ietnam’s furniture industry is no doubt growing. Wood and wood products export turnover is forecast to reach US$8 Bn in 2017, posting a 14 per cent year-on-year increase and surpassing the target of US$7.6 Bn set earlier last year, according to the Handicraft and Wood Industry Association of Ho Chi Minh (HAWA).

The two-digit growth rate this year is possible because companies invested in technology and design, Huynh Van Hanh, deputy chairman of HAWA, said in an interview with VietNamNet. Many are keen to make capital investments and expand production to supply customers in U.S., Japan, EU, China and South Korea. A new generation of managers is also kickstarting design teams and marketing them under their own brand.

Given the high growth potential of this market, VIFA Woodmac provides access to more than 1,500 exporting companies in need of new technology to expand capacity. The show is located in Binh Duong province, Vietnam’s furniture and wood processing hub. It is near Long An, Dong Nai province and Ho Chi Minh City where 60 per cent of factories are located.

PRE-EVENT TECHNICAL SEMINAR SERIES This year, a new pre-event technical seminar series* will allow international exhibitors to introduce machines tailored for the Vietnamese market. It is held one day in May and July respectively with opportunities for networking. The audience will mostly be members from the Binh Duong Furniture Association (BIFA) and HAWA, both of whom are co-organisers of VIFA Woodmac Vietnam. Both associations represent a majority of Vietnam’s 4,000 over wood processing and furniture companies.

These two seminars lead up to VIFA Woodmac in October, where delegates will be able to find out more about the machines and services offered.

Based in Binh Duong, VIFA Woodmac Vietnam 2018 is set to unlock endless possibilities for your business in Vietnam and the region! ℗ *More details to be available soon.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

SHOW PREVIEW 45

24-27 October 2018

2nd Edition

THE WOODWORKING SHOW IN THE HEART OF VIETNAM'S FURNITURE CLUSTER

Jointly organised by HAWA CORPORATION PANELS & FURNITURE Group

BI

NH

DU

ON

G

—

TH

E

RI

GH T

LO CA TI

ON

BINH DUONG

Enquiries For International Exhibitors Pablo Publishing Pte Ltd 3 Ang Mo Kio Street 62 #01-23 Link@AMK Singapore 569139 Tel: (65) 6266 5512 Email: williampang@pabloasia.com

Venue: Expo Binh Duong Binh Duong Province, Vietnam.

www.vifawoodmacvietnam.com PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

46 SHOW PREVIEW

4 2018:

The fantastic Asia’s wood materials only show has come a long way since small beginnings in 2015.

W

hat was once a small cosy event has now grown into a show well-known in the timber industry for its special focus on wood. Sylva Wood was, of course, always international with suppliers from as far as Uruguay and Latvia crossing ocean and continent to exhibit in Shanghai. It is the Carrefour du Bois of Asia, the only annual trade show here for wood and wood products.

It has enjoyed endorsements from the American Hardwood Export Council, American Softwoods, Canada Wood, French Timber and Softwood Export Council since Day One. As members return with positive feedback about the show, their support grows with each edition, heralding Sylva Wood’s claim to fame.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

th

SHOW PREVIEW 47

“The show has been improving. It focuses on wood materials and is very useful for our members. We’ve got a pretty good number of visitors visiting and they are professional timber trade people. The members are very happy so I believe this is a quality show that is valuable for us,” John Chan, AHEC’s regional director, remarked.

“It is always a pleasure to extend heartfelt thanks to old friends who have helped make Sylva Wood possible,” said William Pang, managing director of Shanghai Pablo Exhibition.

This year, Sylva Wood celebrates its fourth edition.

It is one that marks multiple milestones, including new endorsements from the Thai Timber Association, Malaysian Timber Council and National Hardwood Lumber Association. For the second time, the Russian wood industry will also host a massive pavilion, as will the Dongguan Veneer Alliance.

Chuck Chen, general manager of Dongguan V.M. Trading, commented, “Sylva Wood is a platform for exchange. It is what we need to meet old and new customers and understand their needs. Veneer is a natural product and it is through exhibiting here that we can share with them the charm and value of this material.”

The show is expected to gather more and more industry people seeking to expand new opportunities in one of the world’s biggest markets hungry for wood.

Furniture and flooring manufacturers, as well as traders and importers will also visit, providing ample fodder for intellectual discussion and debate.

All the world will once again meet in Shanghai from June 25 – 27. A full programme of workshops and seminars will also be held over the three days—details to be confirmed in the following months. ℗

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

48 SHOW PREVIEW

“

This show is quite important to us simply because it is very much wood focused, which makes it different from other shows. Sylva Wood provides a one-stop wood shopping experience for wood buyers so they do not have to run around looking for vendors. This is something my members and I very much enjoy and that’s why we are committed to coming back again.

”

– Xu Fang, Director, American Softwoods

“

The show is very good even though it is not big. It is very specialised. We managed to find interesting new partners, hopefull y this will give us new clients and bigger exposure. It is always good to be at an exhibition in China, something we seldom do, as we already have a huge client base here. We have been in this market over 10 years.

”

Rodion Khlystun, Representative, Ilim Timber, Russian Pavilion

Sylva Wood 2018

“ What

we like most is that it’s not just a show but also a platform for [establishing contact].

”

- Nikolay Ivanov (Fourth from left), Managing Director, Segezha Group, Russian Pavilion

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

Dates

: June 25 - 27

Venue

: 99 Xing Yi Road Shanghai 200336

For more details : www.sylvawoodexpo.com

SHOW PREVIEW 49

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

50 SHOW PREVIEW

(Guangzhou) lays out new themes, new experiences The great countdown to March begins as CIFF approaches, this time promising new perks and experiences.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

SHOW PREVIEW 51

M

arch, the annual golden season for trading will bring the furniture industry to the Pearl River Delta in China. The 41st CIFF (Guangzhou) is expected to welcome over 4,000 brands and 190,000 professional visitors.

The 750,000sqm exhibition covers products in the entire industry chain.

Held in two phases, March 18-21 and March 28-31, the event will focus on the latest trends in customisation, intelligence, design and luxury, as well as optimise the show’s layout to bring the domestic and international markets together.

CUSTOMISATION, INTELLIGENCE, DESIGN As the customisation trend picks up in China’s home furnishing industry, new technologies such as the Internet of Things, cloud computing and smart chips have become part of home furnishing.

Phase 1 of the show will highlight some of these trends in “Whole Customised Smart Home” at Halls 6.1-8.1, Area A. The organisers have also spared no effort in turning Halls 4.1-5.1, Area A, into a Design Hall. It integrates the solid wood and neo-Chinese brands, and brings together the current design trends in the China market, effectively providing exhibitors and audiences with a one-stop matching service.

LIGHT LUXURY To quote fashion guru Karl Lagerfeld, “we live in an era when expensiveness and inexpensiveness can co-exist well,

and this is the first time to happen in the fashion circle.”

T h i s “ex p e n s i v e n e s s ” a n d “inexpensiveness” is now seen in furniture where the demand among young consumers now is for cosy, personal and trendy products that raise the quality of living. Halls 4.2-5.2, Area A, will gather top-grade and affordable luxury products.

The European & American Furniture section will continue to be in Halls 9.210.2, Area B. SPECIAL HALLS TO BOOST EXPORT OPPORTUNITIES China’s furniture exports from January to August 2017 reached RMB126.34 billion (US$19.41 billion), up 6.2 per cent year-on-year.

Halls 9.3-11.3 in Area B will host the Dining Room/Living Room Furniture and the Upholstered Sofa and Mattress sections to serve exhibitors looking for new export markets. These exhibitors feature quality Made in China products.

For the overseas visitor, it makes their visit more enjoyable and convenient as all the key exporters are located in one place.

ENHANCING EXPERIENCES This year, the Home Decor & Home Textile section, together with the Lighting Hall, comes under the theme of Zen. The Outdoor & Leisure section will use Hall 17.3 as the Outdoor Gardening Experience Hall to introduce new outdoor furniture products. It will work with the third Global Garden Lifestyle Festival to

reinterpret garden lifestyle and recreate the outdoor garden showroom.

Phase 2 of the 41st CIFF (Guangzhou)Office Show, running from March 28 – 31, will include Medical & Healthcare Furniture in Hall 5.1, expanding the scale of the Smart Office - Hall 5.2 to attract more brands.

CIFM / interzum Guangzhou will further optimise themes and display space for an enhanced visitor and exhibitor experience.

The 41st CIFF is held from March 18-21 and March 28-31 in Pazhou, Guangzhou. ℗

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

52 SHOW REVIEW

2nd Global Timber Conference underlines new strategies for sustainable growth • Sarawak Deputy Chief Minister makes major announcement • Wide range of topics covered under the theme, “Innovation and Market Driven Strategies: Keys to Sustainable Growth”

YB Datuk Amar Haji Awang Tengah Bin Ali Hasan, Deputy Chief Minister of Sarawak, announced that all forests must be certified by 2022.

he second Global Timber Conference, held in Kuching from Nov 6 to 8, began with a study tour followed by a conference programme that covered six topics.

Guest speakers from the government, private sectors and consultants presented a wide range of topics: “Global Timber Outlook: Demand, Supply and Prospects,” “Genomics and Good Silvicultural Practices,” “Standards, Certifications and Eco-Labelling,” “Alternative Raw Materials,” “Urban Transformation” and “The next wave in Wooden Furniture: Design, Material and Technology.”

In his opening speech, YB Datuk Amar Haji Awang Tengah Bin Ali Hasan, deputy chief minister of Sarawak, announced that all timber concessions in Sarawak must be certified by 2022.

“We are set to reduce our reliance on natural forests for raw materials to feed our timber mills. Towards this end, we are investing in R&D for a viable and robust industrial forest estate in the state,” Datuk Amar said.

The conference, he added, is timely for industry members to learn how to enhance performance and competitiveness.

Later, Richard Laity, Projects & Development officer at PEFC International, gave an update on PEFC’s growth in Southeast Asia where several countries are now developing national forest certification schemes for endorsement by PEFC.

Michael Buckley, wood industry consultant from Singapore, reviewed status and prospects for Asian furniture manufacturers.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

Traditional Sarawak dance opens the conference in Kuching

THE FUTURE OF FURNITURE IN SEA With regard to furniture industries, Michael Buckley, a wood industry consultant from Singapore, reviewed the current status and prospects for Asian furniture manufacturers. He concluded the industry, as always, is facing challenges, of which raw material supply and increasing government legislation may be the two most important.

But keeping up with trends is also vital. In the future this is likely to focus on better furniture in the middle market, for example, the increasing need for smaller space furniture. Ask some American and European companies why they went out of business, he suggested; while many will cite cheaper labour in developing countries, falling behind on manufacturing innovation and design may be nearer the truth. Finally online shopping may become a big disrupter for the industry.

Roberta Mutti, from Italian Consulting Pte Ltd, discussed the success of the Italian furniture industry and focused on the importance of design and the future growth of middle class consumption in Asia. The OECD predicts that in 2030, 59 per cent of the world’s spending by the middle class will happen in Asia – up from the current 23 per cent.

Ngo Sy Hoai, vice secretary general of VIFORES from Vietnam presented two papers on species selection and on strategy for the furniture industry in Vietnam. He discussed the challenges of reliance on wood imports, low value-added products and industry fragmentation.

However he also noted that Vietnam had made strides in forest rehabilitation, land tenure reforms and market development. With wood consumption running at 31 million cubic metres annually with only 23 million cubic metres available locally, and with over 100 countries supplying wood, traceability is now an issue.

On design and construction with wood there was plenty to inspire delegates as technological advances and use of Cross Laminated Timber (CLT) offer exciting prospects in building, especially in high-rise. ℗

SHOW REVIEW 53

th

The 12 International Woodworking Industry Fair

The Bi-annual show in Ho Chi Minh City was held Oct 18 to 21.

T

aiwanese and Chinese machinery exhibitors, along with their Vietnamese local agents, dominated the 12th VietnamWood, held at the Saigon Exhibition Convention Center. The biannual show is exclusively endorsed

by Eumabois, representing European manufacturers, but only a small group of German and Italian manufacturers participated.

Yet a majority of exhibitors—nearly 80 per cent—were from overseas, demonstrating the importance of Vietnam for those keen to penetrate this growing market. The overall sentiment was optimistic although visitor traffic seemed a little slow over the four-day show. Organisers estimate the number of visitors at 11,470.

Mr Wei Chin Hsiang, president of Lih Woei Carpentry Machinery, said, “The Vietnamese market is still growing these past few years. The market here has more opportunities compared to other countries in Southeast Asia.”

“The show was quite promising with quite a number of good visitors. The quality of the visitors, I would say, was quite promising as well. It’s too early to say if we will be back in 2019, but if we are able to, you will see us there!” Patrick Phua, general manager of Weinig Asia, said.

Organisers estimate about 11,000 visitors visited the four-day show

Opening ceremony

In the raw materials section, the American Hardwood Export Council (AHEC) hosted an American hardwood pavilion with 31 members individually exhibiting, and another seven U.S. exporters scattered around. “We are always happy with this show,” said John Chan, AHEC’s regional director.

Other association pavilions were Swedish Wood, which represented nine sawmills; the Quebec Wood Export Bureau fronted three Canadian companies; while French hardwood exporters numbered to an impressive eight under the umbrella of Business France, accompanied by French Timber. Other overseas wood suppliers came from Australia, Croatia, China, Germany, Malaysia and Spain.

Fringe events included a seminar on the first day held by AHEC in partnership with HAWA and the Ho Chi Minh City Association of Architects (HAA) at the GEM convention center. On the second day, Swedish Wood introduced Swedish softwood species and its application in modern design and architecture.

Vietnam is the fifth largest exporter worldwide, the second largest in Asia and the largest in Southeast Asia. Its key export markets are USA, China, Japan and the EU. The value of exports is climbing: US$7 Bn in 2016 and expected to reach US$8 Bn by the end of 2017 and a further US$10 Bn by 2020.

The next VietnamWood is scheduled for Sep 18 – 21, 2019. ℗

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

54 SHOW REVIEW

AMERICAN HARDWOODS – SETTING THE TREND FOR SUSTAINABLE DESIGN T he seminar was a showcase of inspiring projects done by AHEC.

O

pening remarks were made

by Gerald H. Smith, Senior Agricultural Attaché, U.S. Consulate, Nguyen Chanh Phuong, secretary general of the Handicraft and Wood Industry Association of HCMC (HAWA) and Truong Luu Nguyen, president of the HCMC Association of Architects.

Addressing the audience, AHEC Chairman Dave Bramlage said, “You’ll learn a lot, see a lot and I hope you will take home things said and we can promote American hardwoods through you.”

John Chan, AHEC regional director, added, “There is increasing interest in the use of American hardwoods for the interiors and building sectors within Vietnam's rapidly-growing construction industry. AHEC is hosting this event to educate traders, architects and designers on the U.S. hardwood resource, grading systems, design potential, market trends as well as its successful application in prominent sustainable design projects around the world.”

Exports of U.S. hardwoods to Vietnam reached over US$200 Mn in 2016, much of which was consumed by the furniture industry.

Maggie’s Oldham in the UK is the first building in the world made of hardwood cross-laminated timber.

Image credit: Jasmin Sohi.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

SHOW REVIEW 55

A SUSTAINABLE APPROACH European Director David Venables opened his presentation with the words, “It’s all about the trees” and focused on the sustainability of U.S. hardwood forests. At least 20 American hardwood species are available in significant commercial volumes but Vietnam does not use them all.

Mr Venables said, “Sustainability is also about the balance between what we use and what nature produces which behoves us to select from a wider range of species and in various grades.”

He also shared how AHEC is working with European retailers to choose a wider variety of species and with initiatives such as the recent “Too Good to Waste” campaign in Italy.

Sustainable forest management by natural regeneration with growth exceeding harvest and mortality is the pillar by which American hardwood is regarded as a ‘safe’ material. “Most species in most states show net growth – a real measure of sustainability,” he commented.

This is supported by new online interactive maps which provide data for any commercial species at a national, state or county level. He demonstrated red oak as a case of under-utilised material.

Only four per cent of American hardwood forest is FSC- or PEFCcertified. But low intensity selection felling – most owners may harvest only once in a generation – makes such certification uneconomic. Hardwood timber operators purchase from hundreds of different landowners each year, usually in small quantities and there are four million hardwood forest owners in the USA. AHEC’s response to lack of certification is not to defend but to develop a broader, more effective approach to demonstrate sustainability.

For many of AHEC’s recent projects it has been possible to calculate the time in seconds taken for the forest to re-grow the equivalent amount of wood used in any single project. For example, it takes 25 seconds to replenish the 500 cubic metres of American white oak in a deck in Milan, as well as the 14.5 metric tonnes of CO2 stored.

PERFORMANCE AND DESIGN Mr Venables also shared trends in American hardwoods with new and innovative applications including Thermally Modified Timber (TMT) and

Cross Laminated Timber (CLT). The latter is now well-known for the Endless Stair, The Smile and Maggie’s Cancer Centre in the U.K.—the world’s first commercial use of tulipwood CLT. In a demonstration of structural performance along with aesthetic design, Mr Venables showed the structural use of American white oak for the barrel vaulted grid shell roof over Portcullis House in London. With strength class D50, it is roughly twice the strength of high-grade softwood.

This enables more slender members to be used due to its superior strength-toweight ratio.

For the future he predicted that red oak will become more widely utilised.

The seminar concluded with a presentation on U.S. Hardwood Lumber Grades by Dana Spessert, chief inspector of the National Hardwood Lumber Association. ℗

"

Sustainability is also about the balance between what we use and what nature produces which behoves us to select from a wider range of species and in various grades.

"

- David Venables, European Director, AHEC

David Venables, AHEC European Director

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

56 SHOW REVIEW

LARGE POTENTIAL FOR SWEDISH WOOD IN VIETNAM Swedish sawmillers gathered in a Swedish Wood pavilion and presented at a seminar supported by HAWA, BIFA and the Forest Products Association of Binh Dinh (FPA).

S

wedish Ambassador Pereric Hogberg opened the seminar by comparing the size and population of Sweden and Vietnam. Vietnam is two-thirds the size of Sweden but has 100 million people compared to only 10 million in Sweden. Their relationship goes back to 1969 when Sweden was the first western country to establish diplomatic ties with Vietnam. The ambassador declared he was impressed with Vietnam’s economic development over the last 10 years and equally impressed by the Vietnamese people’s concern for safety, sustainability and quality of their air, water and food. Such concerns would have an impact for wood too.

Vietnam is a major hub for wood processing and is the world’s fifth largest exporter of wood products and wood furniture with exports expected to reach US$10 Bn by 2020. Mr Hogberg confirmed Sweden’s commitment to sustainable forest management and with 70 per cent of the country covered by forest, there are huge opportunities for Swedish wood.

Swedish Ambassador Pereric Hogberg addressing the audience at the seminar

Photos 1 and 2: Discussions going on at Swedish Wood pavilion at the 12th VietnamWood held Oct 18 - 21

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SHOW REVIEW 57

He said, “I think there is a large potential for Swedish wood suppliers to supply to Vietnamese manufacturers so that high quality and sustainable raw material is used for production.”

Mr Huynh Van Hanh, vice president of HAWA, said that Vietnam had to import to supplement their production needs not only because of resource shortage but also to satisfy the diverse needs of international customers.

In 2016 Vietnam imported US$1.7 Bn worth of wood. The demand for legal wood is increasing since Vietnam signed a VPA-FLEGT agreement with the EU. Mr Hanh recognised that Swedish Wood had been present in Vietnam for more than 15 years but hoped they could increase their marketing activity.

Mr Tran Le Huy from FPA observed that Sweden produced excellent softwood used for windows, doors and panels but there were distance and logistics issues so New Zealand and Chile were closer alternatives.

Mr Luu Phuoc Loc (John), general director of BIFA, stressed the importance of Binh Duong province where his 180 members were based as it is close to HCMC, the sea port and airport. These enterprises need improved technology and improved management, he said.

Most wood material is imported from the USA – white oak, ash, beech, yellow poplar while rubberwood and acacia comes from Vietnamese plantations. He

Mr Huynh Van Hanh (far right), Vice President of HAWA

welcomed the participation of Swedish Wood and hoped they could increase their market share.

Ms Charlotte Dedye Apelgren, director of Interior and Design, Swedish Wood, revealed four trends in demand: renewable materials; toxic-free materials; healthy products to improve well-being; versatile materials to adapt to our changing needs.

She shared that Swedish wood can respond to these demands as it is renewable and non-toxic with research from Canada and Europe finding that time spent in a wood environment lowers blood pressure, heart rate and stress levels. Furthermore Swedish wood can take many different shapes, textures and colours.

Technical aspects of Swedish wood were described and illustrated from

the difference between the two main species: pine (Pinus slvestris) and spruce (Picea abies).

Total softwood exports to Vietnam increased over the past four years to 460,000 cubic metres in 2016, of which 44,000 cubic metres is from Sweden.

It is the largest European supplier of softwoods to Vietnam consisting sawn and planed timber. It also supplies glueedged boards, profiles, glulam and cross laminated timber to other markets.

East Asia now accounts for 15 per cent of Sweden’s total exports of sawn and planed timber, a value reaching US$500 Mn. Sweden’s largest markets are Japan and China but the demand from Vietnam is also rising. Last year, sales of sawn timber from Sweden to Vietnam rose by 86 per cent. ℗

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PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

58 SHOW REVIEW

PEFC GETS SMART IN HELSINKI AND LOOKS TO THE FUTURE

L

ast November ’s PEFC Week in Helsinki brought members together to work on developing a new global strategy for PEFC to promote more sustainable forestry and tree management, and on increasing the value of the wood products supply chain to society as a whole.

“We need a paradigm shift in how society perceives the whole forest/tree value chain,” said Ben Gunneberg, CEO of PEFC International, as he opened the 22nd PEFC General Assembly. “Society is at a crossroads and the strategic direction we choose will provide the opportunity for us to demonstrate the real value of sustainable forests and their contribution to society in achieving the UN’s Sustainable Development Goals.”

He added that industry must demonstrate how forests are part of the solution to tackle climate change and a growing urban global population.

“For too long, society has perceived forestry as part of the problem rather than the solution. By working interdependently, PEFC can and will change society’s perception and place forests at the heart of the solutions to these challenges,” Mr Gunneberg said.

The annual meeting typically sees PEFC members gathering for meetings and workshops on Monday and Tuesday, followed by the General Assembly, held on Wednesday. The last two days of the Week is open to stakeholders registered for the PEFC Stakeholder Dialogue. The 2017 event received 250 participants from 57 countries worldwide including delegations from Asia.

This year, under the Dialogue’s theme, ‘Making Certification SMART’, delegates explored the potential of technology innovation within certification: From remote sensing and mobile apps through to block-

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

Ben Gunneberg, CEO of PEFC International

chain and crypto currencies. Delegates discussed how to approach technology in a meaningful way that could increase the value of PEFC to forest owners as well as to supply chain actors. “ The incorporation of smart technology could ensure that the full extent of the sustainable development

goals can be better delivered and better communicated than in the past,” Mr Gunneberg stressed.

In his concluding remarks, he added, “By engaging collaboratively, we can leverage the impact of the work we do, and achieve so much more.” ℗

Networking at PEFC Week in Helsinki

60 SHOW PREVIEW

BIESSE: The race to reinvent Held from Nov 2 to 4, Biesse’s open house introduced SOPHIA and helped visitors understand IoT.

B

ased in Selangor, Malaysia, Biesse Group Asia again opened its doors to visitors to discover innovative wood, glass and stone-working technologies, and software solutions.

With the theme “The race to reinvent,” visitors were invited to relish the Biesse experience through a first-hand view and touch of the many innovations that will help them compete effectively in the woodworking market.

BRINGING GREATER VALUE TO MACHINES Although the vast showroom has numerous machines, it was SOPHIA visitors were looking forward to.

SOPHIA, the acronym for Services Optimisation Predictivity Human Innovation Analysis, is a cloud-based software management tool that helps users achieve higher productivity by providing them with an easy-to-use dashboard containing real-time visibility of machine status, performance and functionality.

The game-changing IoT platform is developed in collaboration with Accenture.

Together, Biesse aims to educate visitors on the potential of IoT and the tremendous benefits SOPHIA can bring.

A good example of SOPHIA is its ability to predict an impending failure by constantly looking out for abnormalities in machines such as excessive vibration or high temperature of a CNC router's electro spindles.

As SOPHIA continuously accumulates, monitors and analyses the machine’s data via a cloud-based computing network in real-time, users can now prevent downtime with the warning that is triggered in a targeted and timely manner before a bigger problem occurs.

“In order to better understand what SOPHIA is, and before the introduction and promotion of Sophia, we thought that it will be interesting to go into details

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

Daniele Campetella, Managing Director of Biesse Group Asia, giving an introduction about the event

From left: Visitors are invited to relish the Biesse’s experience through a first-hand view and touch of the many innovations at the showroom; A demonstration of the ROVER A EDGE

about the technology that Sophia is based on, specifically IOT,” said Daniele Campetella, managing director of Biesse Group Asia.

UNDERSTANDING IOT IoT has increasingly been mentioned in the past few years.

“It means that, in a tangible dimension, any object is connected to the Internet and is inter-connected between themselves,” explained Alessandro Puccio, manager of Sales Program Management at Accenture.

This, for example, can be the building of sensors on top of devices such as mobile phones and CNC machines.

“It is generated by a platform which brings data from all these different sensors and allows us to get insights on how to take action,” said Puccio.

As the industry moves towards smart ‘living’ products and services, with self-learning intelligence, connectivity and contextual

awareness, big transformations are set to be seen in the industrial equipment landscape, said Puccio.

He also went on to explain how the adoption of IoT is able to help clients become more insightful decision makers, hence, generating the ability to implement impactful interventions to improve business outcomes.

With the help of IoT, industrial equipment companies can now increase their market capitalisation by doing things differently as well as do different things.

Understanding this importance, Biesse is looking to connect 40 per cent of its 50,000 machines with 40 sensors each to drive growth.

With the know-how, expertise and resources, Biesse is helping its users to live the Biesse experience everyday.

SOPHIA will be available in Asia this year.℗

FROM THE GROUND

We are looking for a new technology that can adapt to our existing machines to increase their capacity and quality, and to improve our factory process. We are existing customers of Biesse and we chose Biesse because it is a well-known brand in the world. Their machines are excellent and we know it because of our existing machines. It's our first time visiting this showroom and an event of Biesse. The first impression we had is the warm welcome from Biesse and how well the machines are organised.

– Surasit Jiamjirungkorn, Engineering Line Manager, Index Interfurn Co., Ltd.

“

”

I am interested in their ROVER machine. I chose Biesse because their machines are very good and the technology is first-class.

– Boonchert Chuencharoen, WAP Machinery Co., Ltd.

“

”

I came because I am interested in one of their machines. Yesterday, I heard from my husband that they have edgebanders here, so I came to look at it. It is a very good show.

– Carla Junitaa, Accoun ng, Art Deezign

“

”

It's a great pleasure to be here on behalf of Accenture and to reinforce our partnership with Biesse Group in Asia. Our colleagues in Italy have been working hard on a few projects and so it's good to keep Asia as part of this initiative.

It's impressive to see all these machines close up. I'm not used to this environment and I think Biesse did a great job in bringing together visitors and stakeholders, and hosting them in such a great environment. Much much much better than a conference room right?

– Alessandro Puccio, Manager, Sales Program Management, Accenture

“

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PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

62 WOOD CLINIC

Mr Shim (Shen Yuxin)

A READER'S EMAIL Dear Mr Shim, I have just joined a small carpenter's shop that makes bar counters and stools.

However, I do not yet know how to identify wood species. Can you offer some tips on identification? Our bar counters are made using 5-inch thick slabs of rift cut log and there are often large cracks. We use a mixture of ferrous glue and sawdust to fill these cracks. However the patched area tends to bulge after some time (Fig. 1). Can you advise us on these problems?

Yours Sincerely, Mr Sarin Indonesia

ASK M R S H I M HOW TO IDENTIFY INDONESIAN TIMBERS AND FILL UP CRACKS iii. Specific gravity: Belain or Ulin, for instance, has an air-dry density of around 850-1100kg/m3.

(I) Iden fying Indonesian mbers 1. Hardwood: Annual rings are generally less distinct; cells mainly consist irregular vessels, tracheids, wood rays, parenchymas and fibres.

H a rd wo o d s w i t h m e d i u m o r high density are the most common, although there are also low-density species.

2. So wood: Also known as coniferous timbers, softwood’s annual rings are distinct; cells mainly consist regular-sized tracheids, wood rays and parenchymas. Wood is mostly soft; there are some species that have high density. Only two types of softwood are common in Indonesia: Merkusii pine and Philippine Agathis.

iv. Annual ring: Indonesian hardwoods have less distinct annual rings, except a few species such as the lacquer tree (or Rengas). According to the distribution of the vessels, hardwoods can be divided into diffuse porous hardwood and ring porous hardwood. For example, Dark Meranti and Merbau are ring porous hardwoods.

Fig. 1: Glue line showing the patched area bulging out after patching with a mixture of ferrous glue and sawdust.

3. Characteristics: Observing the radial, lateral and cross section of the wood can help identify its species. i. Colour: Wood species such as Kapur has a light bluish yellow sapwood and pink heartwood (Fig. 2). ii. Odor: Timber such as kapur smells of camphor when sawn apart.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

Fig. 2: When Kapur is sawn apart, the sapwood is light bluish yellow, significantly different from the pink heart wood.

WOOD CLINIC 63

Fig. 3: The heart wood of Kapur contains crystalline resin that is as white as borneol.

Fig. 4: Clear resin canals on a cross section of Dark Meranti under a magnifying glass.

v. Heart wood is usually bri le. Some species have more extract and are heavier in weight. For example, the heart wood of Kapur contains crystalline resin that is as white as borneol (Fig. 3). For some species, the heart wood and the sapwood are particularly distinct, such as Rengas.

xii. Resin canal: Dark Meranti has clear resin canals (Fig. 4), one of the main features to help identify wood species.

vi. Sapwood is usually pale yellow or white. Some species like rubberwood display no difference in colour for sapwood and the heart wood. vii. Wood grain: Common wood grains include straight grain (Belain); wavy grain; spiral or diagonal grain; interlock grain (Dark Meranti). viii. Texture: The thickness of the texture can be distinguished by observing with the naked eye or touching dressed wood surface. ix. Wood rays: Observe the thickness, colour and luster of dressed wood’s lateral section with a magnifying glass. x. Cell extract: Observe the dressed wood surface with a magnifying glass. xi. Latex can be seen at the end of the log for some species, such as Merbau. During sawing, the band saw blades will be stained by latex.

xiii. Oil may be found on the wood’s surface after being dressed, for example, Keruing. The oil is more obvious when seen from the cross section. xiv. Minerals contained in wood cells may not be the same. For example, in the vessels on the lateral or cross section of Merbau, yellowish minerals such as sulfur are obvious (Fig. 5).

(II) Patching up cracks in 5-inch thick slabs of ri cut log: When the log is cut into 5-inch thick slabs, the moisture content in drying wood is uneven or over 16 per cent.

In an air-conditioned room, for example, the moisture content may only be nine per cent, resulting in wood drying and contraction. As the mixture of ferrous glue and sawdust is very solid, the glue film becomes very hard and anti-solvent. As a result, it cannot contract simultaneously with the wood and thus bulges. The moisture content should be controlled at 10 ±2%.

I hope the above analysis helps.

Fig. 5: The vessels on the Merbau cross section contain many small yellow dots of sulfur, visible to the naked eye.

f you encounter any problems with wood bonding in timber manufacturing or wood processing, don’thesitate to ask Mr Shen Yuxin immediately!

Mr Shen Yuxin was born in 1948 in Kuching, Sarawak, Malaysia. In 1974 he graduated from the Department of Forest of National Chung Hsing University in Taiwan, and then worked in Taiwan Forestry Bureau. From 1975 to 1995, Mr Shen engaged in wood processing and wood-based panel industry in Malaysia, Singapore, Kalimantan island country, and served as the engineering and technical personnel, production director, production manager, as well as general production manager. Mr Shen also entered world famous Asian Chemical Company woodworking group in 1996, and worked as the regional director of technical services.

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PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

THE MALAYSIAN MDF MANUFACTURERS ASSOCIATION ( MMMA ) NEWSLETTER JANUARY/FEBRUARY 2018

Medium Density Fibreboard: A safe choice

M

edium density fibreboard (MDF) is an engineered wood product made by breaking down hardwood or softwood residuals into wood fibres, often in a defibrator, combining it with wax and a resin binder, and forming panels by applying high temperature and pressure. MDF is generally denser than plywood. It is made up of separated fibres but can be used as a building material similar in application to plywood. It is stronger and much denser than particleboard.

Medium density fibreboard, MDF, available in a variety of panel dimensions and thicknesses, can be cut easily and smoothly without any breakage or splintering. It can be profiled on edges and surfaces, in a variety of deeply-etched shapes.

Its mirror-smooth surfaces are ideal for painting, veneering, laminating, grain printing and staining. A variety of versions of MDF are available, including standard, flame-retardant, moisture resistant, exterior and high density. None of its properties is affected by cutting or machining. With the attributes and advantages outlined above it has proven to be an ideal panel material for use in a variety of industries, primarily furniture, building, signage and shop fitting.

Benefits • Is an excellent substrate for veneers • Some varieties are less expensive than many natural woods • Isotropic (its properties are the same in all directions as a result of having no grain), so no tendency to split • Consistent in strength and size • Shapes well • Stable dimensions (won’t expand

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or contract like wood) Easy to finish (i.e., paint) So are there any disadvantages to using MDF for the manufacture of furniture and construction materials?

Some literature may state that there are safety concerns about the amount of dust and formaldehyde emitted. When MDF is cut, a large quantity of dust particles is released into the air. It is important a respirator is worn and that the material is cut in a controlled and ventilated environment.

There is no evidence of any instances of cancer in human beings related to exposure to dust from MDF, a product in use since the 1960s.

MDF contains a very low level of formaldehyde. The amount emitted from the board is not harmful and begins to reduce as soon as the board is produced. Moreover, formaldehyde is a naturally occurring chemical. Used industrially for nearly a century, it is employed by at least 85 manufacturing sectors—for products such as paint, varnish, cosmetics, disinfectants, medicines and adhesives. The amount of any formaldehyde emitted from MDF is tiny. It is certainly well below the World Health Organization’s guideline figure for the amount of formaldehyde that may be emitted from all product sources and that may be present in ambient air—inside homes or outside—of 0.1 mg/cubic metre (equivalent to 0.08 parts per million).

Most responsible manufacturers produce MDF under controlled conditions which comply with •

the most stringent requirements for formaldehyde content and comply to regulations specific to those regions, for example below are some of the International Standards applied to MDF material.

• European Standard EN13986 (i.e.

Class E1) • Japanese Standard JIS/JAS F* (one star) to F**** (four star) • California State (California Air Resources Board) Phase 2 standard • Soon to be introduced US EPA (Environmental Protection Agency) Standard TSCA (Toxic Substances Control Act) Title VI Compliant Material Customers or end users of Malaysia manufactured MDF will find that most producers are already manufacturing to these high standards and able to provide the necessary data and certification to show compliance. Consumers should also note that when MDF is coated, painted, veneered or sealed, the amount of formaldehyde leaching into the environment is very negligible.

Prudent end users may even seal the edges which would also give additional protection against moisture intake.

About the Author Peter Fitch is the founder of Segamat Panel Boards (Malaysia) and is currently the Chairman of the Malaysian MDF Manufacturers Association (MMMA) and Executive Committee Member of the Malaysian Panel Manufacturers Association (MPMA). Prior to working in Malaysia he worked for Plantation Timber Products (China) and Takeuchi MDF (Malaysia). Peter has been based in Asia for more than 25 years and has been in the wood panel business for more than 20 years.

GLOBAL WOOD RESOURCES 65

WHAT CAN WE DO TO REDUCE THE ILLEGAL TRADE OF LOGS AND LUMBER?

across Asia—in particular China, India and Vietnam. These interested buyers seem to have little concern about the legality of these products.

Fortunately, there are still many of us who place great importance on the legality of wood. We have an important role to play in reducing the illicit trade.

How can we do this?

1. Stop buying illegal wood products; insist on PEFC- and/or FSC-certified products only.

2. Ensure your company is PEFC- and/ or FSC-certified.

Top: Dubious logs for sale on Facebook.

Bottom: Illegal felling of rosewood.

Photo: Courtesy APP Timber

he trade of illegal logs and lumber seems to be flourishing on the Internet. Each day one receives online offers of wood products sourced from Africa, Asia and South America. Facebook is a very good example and there are many groups that offer such products on a daily basis.

How can you tell these logs are illegally harvested?

One observation I made is that these sellers are often individuals, not licensed companies. Look at the photos and you will see, for example, that the square logs are very roughly sawn which could indicate that cutting was done by a chainsaw in the forest rather than by proper band saws in a sawmill. The other giveaway is that most of these square logs and/or large sawn lumber are manually loaded piece by piece into the container, which is rather unusual. Most proper sawmills will have all material stacked, strapped and loaded by forklift.

Why do people still offer such products? The answer is very simple: There is a huge market for cheap wood regardless of its legality. Many Facebook offers I received have very good responses from buyers

3. Conduct proper EUTR due diligence even if the goods are not destined for Europe.

4. Spread the message, alert other potential buyers about the risks of trading illegal wood.

5. Become an active member of any Internet group offering wood products and keep reminding such groups that they must ensure the legality of all products offered.

The future of the woodworking industry is in our own hands. As users of the forest, we must ensure that all our wood resources are legal in accordance with international laws. They should come from well-managed and sustainable sources that follow best practices in accordance with well-known certification programmes such as PEFC and FSC. ℗

ABOUT THE AUTHOR Dutch-born Michael Hermens is the founder of APP Timber and has been involved in the Asian woodworking industry since 1987.

Over 20 years ago he recognised Asia’s need for the supply of imported raw materials.

APP Timber is now a leading regional provider of such products, focusing on advice and solutions for buyers using imported raw materials. APP Timber has operations across Asia and is in the process of building a Wood Distribution & Training Centre in Indonesia.

Michael lives with his Singaporean wife in Kuala Lumpur, Malaysia, and travels across the globe to meet potential raw material suppliers.

PANELS & FURNITURE ASIA • Issue 1 • January / February 2018

66

CALENDAR OF EVENTS

2018 JANUARY 12 – 15

| DOMOTEX 2018

| Hannover, Germany

| www.domotex.de

15 – 21

| IMM Cologne

| Cologne, Germany

| www.imm-cologne.com

MARCH 7 – 10

Int’l Furniture & | Vietnam Home Accessories Fair

| Ho Chi Minh City, Vietnam

| www.vifafair.com

8 – 11

| Malaysian Int’l Furniture Fair

| Kuala Lumpur, Malaysia

| www.2018.miff.com.my

8 – 11

| IFFS

| Singapore

| www.iffs.com.sg

8 – 12

| India Wood

| Bangalore, India

| www.indiawood.com

9 – 12

| Export Furniture Exhibition

| Kuala Lumpur, Malaysia

| www.efe.my

11 – 14

| Indonesia Int’l Furniture Expo

| Jakarta, Indonesia

| www.ifexindonesia.com

12 – 14

| Dubai Woodshow

| Dubai, UAE

| www.dubaiwoodshow.com

18 – 21

| CIFF

| Guangzhou, China

| www.ciff-gz.com

20 – 23

| Domotex Asia/ China Floor

| Shanghai, China

| www.domotexasiachinafloor.com

28 – 31

| CIFM/ interzum guangzhou

| Guangzhou, China

| www.interzum-guangzhou.com

APRIL 2–5

| Wood Taiwan

| Taipei, Taiwan

| www.woodtaiwan.com

17 – 22

| Salone de Mobile Milano

| Milan, Italy

| www.salonemilano.it

| Qingdao Int’l Furniture Fair

| Qingdao, China

| www.qiff.net

| Nantes, France

| www.timbershow.com

MAY 25 – 28

30 – 1 Jun | Carrefour Int’l du bois

JUNE 20 – 22

| AHEC Annual Convention

| Xi'An, China

| www.americanhardwood.org

25 – 27

| Sylva Wood 2018

| Shanghai, China

| www.sylvawoodexpo.com

SEPTEMBER 11 – 14

| China International Furniture Fair | Shanghai, China

| www.ciff-sh.com

11 – 14

| FMC 2018

| Shanghai, China

| www.fmcchina.com.cn

26 – 29

| IFMAC & WOODMAC 2018

| Jakarta, Indonesia

| www.ifmac.net

OCTOBER 2–4

| NHLA Convention

| Toronto, Canada

| www.nhla.com

25 – 27

| VIFA Woodmac Vietnam 2018

| Binh Duong, Vietnam

| www.vifawoodmacvietnam.com

Calendar is accurate at time of print. Subject to change.

January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

26-29 SEPTEMBER 2018

JIEXPO Kemayoran Indonesia

In Conjunction with:

BOOK YOUR SPACE NOW!

Exclusively Endorsed by:

Organized by:

TOP QUALITY TECHNOLOGIES for Indonesia’s Expanding Furniture Industry CONTACT INFORMATION: PT Wahana Kemalaniaga Makmur Komplek Perkantoran Graha Kencana Blok CH-CI Jl. Raya Pejuangan No. 88 • Kebon Jeruk • Jakarta 11530 • Indonesia Tel: (62) 21 5366 0804 • Fax: (62) 21 5325 890/887 E-mail: ifmac@wakeni.com • Website: www.ifmac.net

ADVERTISERS’ INDEX January / February 2018 • Issue 1 • PANELS & FURNITURE ASIA

COMPANY

PAGE

American Hardwood Export Council

OBC

Baillie Lumber Co

7

Domotex Asia 2018

27

Hardwood Market Report

37

IFMAC & WOODMAC 2018

67

IMAL SRL

IFC

IMEAS Spa

9

Interzum Guangzhou 2018

13

Jiangsu Baolong Electromechanical Manufacturing Co Ltd

59

Kuang Yung Machinery Co Ltd

19

Lesnaya Industriya Journal

IBC

Panels & Furniture Group

11

Sandvik S E A Pte Ltd

1

Siempelkamp Maschinen-und Anlagenbau GmbH

5

Sylva Wood 2018

3

Tong Fong Cutters Co Ltd

68

US Softwood Export Council

49

VIFA Woodmac Vietnam 2018

45

Wood Taiwan 2018

23

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