NEWS

A regulation for a formaldehyde emission limit of ≤ 1.5 mg/L (F**/E1 class) on imported and locally produced woodbased panels products was recommended after studies by the Malaysian government, reported ITTO. This standard is believed to be achievable for majority of Malaysian manufacturers.

Limits on formaldehyde emissions are mandatory in many consumer countries and the Malaysian panel products industry responds accordingly when exporting.

However, there is presently no regulation INDONESIA’S PRESIDENT, Joko Widodo, has announced that planning is underway to move the capital to Borneo. Jakarta, the current capital, is overcrowded and prone to fl ooding as much of the city is below sea level and will continue to sink. Physical infrastructure works for the new are adopting innovative mass timber technology for taller wood buildings this year. The communities include University of B.C., City of North Vancouver, Township of Langley, Kelowna, Surrey, Richmond, Mission, Abbotsford and fi ve more on Vancouver Island. They have all signed on to become early adopters to bring mass timber technology for the construction of new buildings as high as 12-storeys. These communities represent 35 per cent of all housing starts in 2018 in B.C. on formaldehyde emission levels for the domestic market in Malaysia. All wood panel products, whether manufactured locally or imported for Malaysian consumers, are not subject to inspection for formaldehyde emission levels.

To address this, the Malaysian Panel Products Manufacturers Association (MPMA) requested the Ministry of Primary Industries (MPI) to regulate formaldehyde emission for all panel products for the domestic market, be they locally manufactured or imported. capital is expected to begin in 2024. The new capital will be located in East Kalimantan Province near Samarinda and the port city of Balikpapan. Homes for an estimated 1.5 million civil servants will be needed. “Building with B.C. wood is good for people, communities, our economy and our climate. It will create thousands of jobs, reduce carbon pollution and support forest-dependent communities,” said Premier John Horgan. “These 13 communities will help us get there faster.” Forest communities throughout B.C. will see economic benefi ts of increased production from B.C.’s mass timber manufacturers as they develop valueadded timber products and revitalise this cornerstone industry. Since 2016, the Malaysian market has been flooded with imported plywood panels which were suspected to have high formaldehyde content.

An awareness event was recently conducted by the Malaysian Timber Industry Board (MTIB) for domestic plywood mills, workers, agents/importers, intermediate users and the public. An investigation of formaldehyde emission from Malaysian made plywood for the domestic market has been completed and studies on MDF and particleboard

are ongoing. ℗ The shift is estimated to cost around US$33 billion, of which around 20 per cent of the bill will footed by the government, and the rest coming from public-private partnerships and private

13 British Columbia (B.C.) communities

investment. ℗ Abbotsford-based StructureCraft engineers and builds mass timber structures, manufacturing and prefabricating timber products using wood from B.C., including beetle-kill wood.

“We are being approached by developers and architects from all over North America pursuing mass timber for projects that would traditionally be built with steel and concrete,” said Gerald Epp, president, StructureCraft. “And a lot of the wood fi bre for this is coming from B.C.” ℗

THE Indonesian government is mulling over banking on its timber and furniture industry to seize the momentum amid the ongoing trade war between the United States and China, reported ASEAN Economist.

Indonesian President Joko Widodo, in a meeting with industry players, said that Indonesia could take advantage of the trade war—which has roiled global markets for more than a year—through promoting timber and furniture products.

Widodo said such products are the “key commodities.”

“I believe the chances are huge [for Indonesia] to fi ll in the [wood and furniture] market that used to be held by China,” he said.

The government also crafted policies to support the plan, among which are valueadded tax exemptions for logs and a partial relaxation of the timber legality assurance system (SVLK), a licensing requirement for each step in the wood supply chain in order for the industry’s end product to be accepted in selected countries.

“The business players suggested that if the destination country does not require them to obtain an SVLK [license], then the government should not enforce the SVLK regulation,” said Darmin Nasution, Coordinating Economic Minister after the meeting .

“The suggestion makes sense but we need to review the trade minister’s regulation,” he said.

At present, only the European Union, Canada, Australia and the United Kingdom require timber and furniture exporters to have SVLKs.

Darmin added that Widodo also urged the industry to partner with foreign businesses that have technical expertise and good marketing networks, saying that the government would lay the groundwork in a bid to invite more investors into the timber and furniture industries.

Data from the Trade Ministry showed that Indonesia’s export of timber and its derivative products was worth $2.2 billion from periods January to July this year, down by 13.47 percent compared to the $2.55 billion recorded over the same period last year.

Furniture exports, meanwhile, rose 9.41 per cent year-on-year to $1.12 billion in the fi rst seven months of this year. ℗

DATA from China Customs shows that there was a slight rise in sawnwood imports in the fi rst half of 2019.

China’s sawnwood imports in the fi rst half of 2019 totalled 18.83 million cubic metres valued at US$4.43 billion, a year on year increase of 4 per cent in volume but an 8 per cent drop in value.

Of total sawnwood imports, sawn MALAYSIA will be expanding tax incentives for companies shifting to the country to set up regional or global business, reportede Reuters. eligible for the government’s Principal Hub (PH) incentive will be able to enjoy a instead of the wider corporate tax rate of 24 per cent, the Malaysian Investment Development Authority (MIDA) said. Companies which had been eligible for the earlier round of PH incentive can opt for the 10 per cent tax rate only ARMED with €10m in EU funding, a consortium of 21 European companies and organisations has formed to try and make timber the material of choice for multi-storey buildings instead of steel and concrete, reported the Global Construction Review. Over the next four years, they aim to remove barriers to timber construction by developing standard, industrialised timber building systems, while documenting softwood imports rose 17 per cent to 14.12 million cubic metres and accounted for 75 per cent of the national total. However, sawn hardwood imports fell 22 per cent to 4.71 million cubic metres.

Of total sawn hardwood imports, tropical sawnwood imports were 2.74 million cubic metres valued at US$1.0 billion, down 22 per cent in volume and down 28 per cent in value.

Tropical sawnwood imports accounted for 15 per cent of the national total. on income over and above the money they made the year before joining the programme, according to a MIDA offi cial. Companies that have yet to establish a presence in Malaysia can apply for tax rates of 0 per cent and 5 per cent for 10 years depending on their investments and job-creation commitments. Past tax rates for such companies were 0 per cent, 5 per cent and 10 per cent. “This enhancement of the PH tax incentive is timely as Malaysia continues to innovate its policies and strategies to attract investments so that the country the environmental, economic and social benefi ts. The group believes timber can be used to build the estimated 1.6 million new apartment units needed every year across Europe. Partners include universities and technical institutes as well as companies from diff erent parts of the construction supply chain, from building materials and design China’s tropical sawnwood imports from Thailand were 1.784 million cubic metres valued at US$528 million, down 24 per cent in volume and down 31 per cent in value. Tropical sawnwood imports from the Republic of Congo rose 87 per cent in volume and 71 per cent in value in the fi rst half of 2019.

However, China’s tropical sawnwood imports from Vietnam, Indonesia and Malaysia fell sharply by 69 per cent,

Eff ective as early as this year, companies 10 per cent tax rate for their operations

51 per cent and 30 per cent respectively. ℗ will be strongly integrated into the region as well as other markets,” MIDA said in a statement.

It said the PH incentive, fi rst introduced in 2015, had helped Malaysia attract local and multinational companies to establish their hubs in the country.

Along with Vietnam and Thailand, Malaysia has been one of the main countries that has benefited from companies trying to shift part of their U.S. tariff s. ℗

production out of China to avoid higher to fi nished structures.

UK timber specialist Waugh Thistleton Architects is the sole UK member of the group. Canadian construction group EllisDon is also a member.

Called “Build-in-Wood”, the initiative also involves end users, politicians, and local communities to push for the acceptance of wood as a building material. With funding from the EU’s Horizon 2020 research and innovation programme, Build-in-Wood runs until August 2023. ℗

USD 4.59 million of American hardwood lumber and veneer were exported to India during the fi rst eight months of this year, according to the American Hardwood Export Council (AHEC), the leading international trade association for the American hardwood industry. The statistics, which have been compiled from the latest data released by the United States Department of Agriculture (USDA), were announced on the sidelines of MumbaiWood. Confi dent of more growth in India, AHEC is participating at the show with a record 20 U.S.-based hardwood and veneer exporters, who are all looking to sell into India.

According to the latest statistics, U.S. hardwood lumber shipped to India from January to August of this year increased by 196 per cent in volume to 2,842 cubic meters and by 96 per cent in value to USD 1.65 million. Close to a third of the volume shipped during this period was accounted for by red oak, which was not shipped to India at all in 2018.

Significant increases were also seen in the volume and value of exports of American walnut (88 per cent and 117 per cent), white oak (14 per cent and 44 per cent), hickory (131 per cent and 42 percent) and maple (39 percent and 32 percent). In addition, the total value of U.S. hardwood veneers exported to ITALIAN machine supplier Biesse has delivered its first production lines ready for production of furniture with Threespine® click furniture technology by Välinge. The launch of the new line is a result of the growing interest in Threespine and will open up more India for the same time period was USD 2.94 million - up by 19 per cent in comparison to 2018.

“While traditionally a tropical hardwood market, log export restrictions in Gabon, Myanmar, Malaysia, and other tropical countries have forced Indian manufacturers to look for alternate wood supply sources. In the past, a favourable tariff structure has supported log imports, but the poor/inadequate level of processing by domestic sawmills has prompted the Indian trade to import higher volumes of lumber in recent years,” said Roderick Wiles,

AHEC Regional Director. “The commitment shown by our members to participate at MumbaiWood and in our seminars with the Bombay Timber Merchants Association (BTMA) and with the Federation of Rajasthan Handicraft Exporters (FORHEX) is testament to their genuine interest and desire to do business in India.”

While exports of U.S. hardwood lumber products continue to increase into India, there is still a general lack of awareness and education in the Indian market, opportunities for companies interested in introducing easily assembled furniture. The new lines from Biesse include two double-sided STREAM edgebanding machines with extra motors for profi ling of Threespine, followed by high-speed and the various consumption hubs limit exports. A particular reason for the smaller market share of U.S. hardwoods is the general lack of knowledge in India (grades, sizes, end-use and application) of the American species. As a result, the highly price-sensitive Indian importers and manufacturers are very quick to switch to alternate species from other countries, as they do not understand the diff erences in quality. AHEC’s return to MumbaiWood offers it a strategic platform from which to interact with timber importers, traders, furniture manufacturers, wood processing companies, as well as architects and interior designers.

“Following on from MumbaiWood, we head to Jaipur where we are hosting a mini-convention in partnership with FORHEX. This follows a similar initiative undertaken earlier this year in Jodhpur and will include factory tours, a networking event and mini-convention from October 21 to 22.

With all of this increased interest and activity, we are positive of a bigger market share and presence for American

hardwoods in India,” concluded Wiles. ℗ automatic inserter machines from Välinge. Drilling stations fi nish the line processing. With this machine configuration, the customer will be able to run the profi ling of Threespine, edgebanding and drilling in one simultaneous process. ℗

THE output of wood-based panel products in China was about 299 million cubic metres in 2018, a year on year increase of 1.43 per cent, according to ITTO.

Total output of plywood, fibreboard, particleboard and other wood-based panel was 179 million cubic metres, 62 million cubic metres, 27 million cubic metres and 31 million cubic metres respectively, accounting for 60 per cent, 21 per cent, 9 per cent and 10 per cent in 2018.

The average annual growth rate of woodbased panel consumption in China was about 13 per cent over the past 10 years and growth in consumption is still positive but the pace of growth has slowed. Consumption of plywood increased slightly in 2018 while consumption of other wood-based panels declined.

In 2018, the volume of China’s wood-based panel exports totalled 14.23 million cubic metres, a year-onyear increase of 2.1 per cent. The value of China’s wood-based panel exports was about US$6.773 billion, up 6.8 per cent over the previous year, reversing the decline seen in the previous three years. The export volume and value of plywood products accounted for 80 per cent and 82 per cent respectively of the total volume and value of wood-based panel exports. There has been rapid development of the wood-based panel sector in China and this continues with a number of large enterprises investing in production capacity.

Most leading enterprises in China have expanded the range of wood-based panels produced and developed into multi-product enterprises making plywood, fi breboard and particleboard. ℗

In the article "Trade War focuses on Design-to-cost approach"published on pg. 42 in the previous issue, the sentence on the third paragraph "They are (Versalink) planning to turn to other Southeast Asian producers to manufacture their products" should have been "Versalink is applying for projects which the Chinese used to produce and therefore gain more orders."

DONGWHA, Asia's largest producer of engineered wood from Korea, is securing the "longest MDF press in Asia" for the second time with another 8' x 47.1 m press. The new, third Siempelkamp plant ordered by the company is designed for processing the demanding raw material acacia.

Already in 2010 and 2015, the company VRG Dongwha, a joint venture of Dongwha International and the Vietnam Rubber Group (VRG), ordered two MDF plants from Siempelkamp. Both plants produce in the south of Vietnam in the greater Saigon area and serve the country's continuously growing wood-based products market.

The new investment in a third Siempelkamp plant is being made by Dongwha as an individual company in order to exploit the specific resource deposits in northern Vietnam in the Hanoi area. Here, acacia is considered one of the most common tree species - ideal for improving soil quality, fi ltering pollutants and enriching the soil with nitrogen. However, the raw material acacia presents board producers with challenges due to its demanding fi bre geometry.

With the ContiRoll ® Generation 9 NEO – stands for New Entry Option - Siempelkamp developed a continuous press with extended highly flexible press infeed that ensures controlled deaeriation of the mat - important for reliable process stability at high production speeds, especially with special fibre geometries. The innovative press concept of the ContiRoll® Generation 9 NEO, many years of experience in processing the raw material acacia, and the good cooperation during the last projects were decisive for Dongwhas order. "We are proud to once again support our Korean partner with a tailor-made solution to expand its market-leading position," says Marc Müller, Area Sales Director Southeast Asia Siempelkamp.

In addition to the forming and press line, board handling and a glue kitchen adapted to the raw material acacia, the scope of supply also includes a dryer and an energy system from Siempelkamp subsidiary Büttner. After the groundbreaking beginning of December 2019, delivery/assembly will start in the third quarter of 2020, commissioning is scheduled for the late summer of 2021. ℗

Team "Dongwha" with Project Director Dongman Shin (third from right). Second from right: Marc Müller, Area Sales Director Southeast Asia Siempelkamp, fourth from right: Jörg Melin, Sales Manager Büttner Energie- und Trocknungstechnik GmbH (Image credit: Siempelkamp)