Board producers to target export markets

Australian particleboard producers will need to target export markets to achieve growth, a new study has found. The BIS Shrapnel Forestry study said some growth in particleboard production in Australia, the bulk of which was currently for the domestic market, was expected over the next five years.

Any expansion would need to target export opportunities, and new plants in Australia would be justified by expanding into markets in China and South Korea over the next five years. The study said Australian exports of particleboard had doubled over the past five years, but from a low base. Import demand had been to meet immediate need, and not by a desire to sign long-term supply contracts.

The development of moisture-resistant (MR) particleboard for outdoor furniture or cladding could create a new market, but it would need to be tested, and consumers would need to be convinced of the effectiveness of this application. The study noted that production capacity in Australasia was about 1.35 million cubic metres annually, with 87% of production in Australia and 13% in New Zealand.

The study noted that Australian and New Zealand particleboard was considered of higher quality than that produced in South East Asia and China, with some niche markets prepared to pay a premium.

The BIS study suggested industry-wide promotion may be the most effective way of expanding demand, and the Australian Wood Panels Association could act as a vehicle for such a campaign.

The study forecast a 9% growth for particleboard consumption in the US in 2004, given a recovery of its economy in late 2003.