Delegates at the joint European Panel Federation (EPF)/European Federation of the Plywood Industry (FEIC) general assembly in Helsinki heard that European authorities’ promotion of wood as a fuel for producing green energy was pushing up prices and threatening the future of the entire wood-based industries.

EPF members fear production costs will grow by around 5-10% per quarter.

On the brighter side, panel production and consumption in EPF countries grew, with particleboard output up by 3% to 35.5 million m3 and consumption reaching 32.5 million m3. MDF production climbed 13.7% to 13.5 million m3, underpinned by a continued growth in consumption to 12 million m3, while OSB set a new production record of 2.5 million m3, helped by demand from construction activities.

The FEIC said European plywood production grew by 3.5% to a new record of 3.9 million m3, mainly due to a strong performance by manufacturers in Russia, Sweden and the Ukraine who achieved growth rates of 20%.

Plywood imports to FEIC member countries rose by 3.2%, with Chinese imports soaring by more than 100%. The largest plywood consumer in Europe during 2005 was the UK at 1.32 million m3.

The EPF’s annual report includes a focus on issues such as the impact of global energy changes on the methanol industry, particleboard and MDF markets in the Middle East, plus a look at China as a future panels export power.

The report is available from the EPF at info@europanels.org