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Annual Report of the European Sawmill Industry 2018 2019 2018-2019 ANNUAL REPORT REPORT ANNUAL Annual Report of the European Sawmill Industry © EOS/OES, May 2019 Rue Montoyer 24, BE-1000 Brussels “A sustainable European bioeconomy is necessary to build a carbon neutral future in line with the Climate Ph: +32 2 287 08 68 – Fax: +32 2 287 08 75 – Email: [email protected] objectives of the Paris Agreement. In the construction sector engineered wood offers great environmental benefits www.eos-oes.eu as well as excellent economic opportunities.” European Commission, A sustainable Bioeconomy for Europe: Strengthening the connection between economy, society and the environment. COM(2018) 673 final Printed in Belgium Mjøstårnet – completed in March 2019 – by Voll Arkitekter in Brumunddal, Norway, is the world’s tallest timber building. The 85.4 m high multi-functional tower was built using glued laminated timber (glulam). Timber specialist Moelven Limtre installed the building’s timber structure, including elevator shafts made from CLT and load bearing structure made entirely from glulam and produced locally. Moelven is a member of the EOS Norwegian Member Treindustrien. Picture: Courtesy of Moelven ANNUAL REPORT 2018/2019 The European Organisation of the Sawmill Industry (EOS) aisbl, an international non-profit association according to Belgian law, represents the interests on the European and international level of the sawmill industries from 12 European countries (Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Latvia, Norway, Romania, Sweden and Switzerland), producing about 80% of the total European sawn wood output. The sector represents a turnover of around 37 billion EUR and 16% of the overall woodworking and furniture industry in EU28. Annual Report of the European Sawmill Industry 2018/2019 The EOS secretariat extends its thanks to all persons and organisations that have contributed to the publication of this report. Note: the information provided in Chapter 4 “Main results from the EOS Market Survey April 2018” as well as in the country reports is based on information supplied by the EOS member federations and may differ from the information included in other databases or reports. If the EOS member federations could not provide the required information, the EOS secretariat has used information derived from other sources in order to present the full picture. EOS ANNUAL REPORT 2018 - 2019 Contents FOREWORD 5 1. GENERAL ECONOMIC SITUATION 7 2. THE WOODWORKING INDUSTRY IN THE EUROPEAN UNION (EU-28) 17 3. ECONOMIC OVERVIEW OF THE WOOD MARKETS 31 3.1. WOOD RAW MATERIALS 31 3.2. SAWN SOFTWOOD 37 3.3. SAWN HARDWOOD 43 3.4. WOOD ENERGY MARKET 48 SPECIAL FOCUS: CHINA AND EAST ASIA, Jenny Wessung, Woodstat AB 51 4. MAIN RESULTS FROM THE EOS MARKET SURVEY – APRIL 2019 62 4.1. GENERAL INFORMATION ABOUT THE TIMBER MARKET 62 4.2. OVERVIEW OF THE SAWN SOFTWOOD MARKET 64 4.3. OVERVIEW OF THE SAWN HARDWOOD MARKET 68 4.4. FOCUS ON BY-PRODUCTS 71 4.5. EOS COUNTRY REPORTS 72 AUSTRIA 72 BELGIUM 75 DENMARK 77 FINLAND 78 FRANCE 81 GERMANY 83 ITALY 90 LATVIA 91 NORWAY 93 ROMANIA 95 SWEDEN 97 SWITZERLAND 100 UNITED KINGDOM 102 SPECIAL FOCUS: The European Parquet Market - Challenges & Opportunities, Isabelle Brose, FEP 104 5. THE CONSTRUCTION INDUSTRY IN EUROPE 108 SPECIAL FOCUS: Erasmus + Sector Skills Alliances, Josef Tschoep, AHK 125 3 EOS ANNUAL REPORT 2018 - 2019 6. EOS ADVOCACY ACTIONS AND RELEVANT EU POLICIES INFORMATION 127 6.1 THE CLUB DU BOIS 128 6.2 WOOD DUST: REVISION OF THE CARCINOGENS AND MUTAGENS DIRECTIVE (2004/37/EC) 133 6.3 CLIMATE CHANGE AND ENERGY POLICIES 134 6.4 SUSTAINABLE FINANCE 146 6.5 COFO24, THE WORLD FOREST WEEK IN ROME, JULY 2018 154 6.6 INITIATIVE REPORT ON EUROPE’S WOODWORKING COMPETITIVENESS STRATEGY BY THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE 155 6.7 FORESTRY’S ASPECTS 158 6.8 THE FOREST CITY PROJECT 2019 172 6.9 BIOECONOMY 178 6.10 EUROPEAN RAW MATERIALS WEEK 2018 185 6.11 THE EUROPEAN TRADE POLICY 188 7. HIGH LEVEL CONFERENCES CO-ORGANIZED BY EOS 201 7.1 INTERNATIONAL SOFTWOOD CONFERENCE 201 7.2 INTERNATIONAL HARDWOOD CONFERENCE 214 8. EUROPEAN STANDARDISATION – UP TO DATE 215 Indufor – Forest Industry & Bio Solutions Services Biomass / Log Sourcing & Wood Supply Plans Business Strategies Site suitability for forest plantation and biomass Pre-feasibility / feasibility studies species and varieties Business plans Potential and realistic supply availability in Market supply, demand and trade assessments – biomass / log supply baskets market entry solutions Developing supply models and assessing End use segment and client identification studies associated cost structures Sustainable Finance Due Diligence and M&A Green Bonds verification Purchaser and vendor due diligence Valuations Mergers and acquisitions Helsinki, Finland – Auckland, New Zealand – Melbourne, Australia – Washington D.C., USA – Beijing, China www.induforgroup.com 4 EOS ANNUAL REPORT 2018 - 2019 Foreword by Sampsa J. Auvinen, EOS President PROMOTING SUSTAINABLE WOOD FOR A SUSTAINABLE FUTURE Between the 22nd and 25th of May, the citizens of the Europe and this is increasing demand for our products. European Union had the opportunity to vote for their Overseas markets have been for some time important for representatives in the European Parliament and shaping the European sawmills and they have a profound impact the future of Europe. From this moment, a whole chain- on our industry and its future. Past few years new Asian reaction of events will be triggered. This will reach its markets have grown and also the United States market climax in November when a new Commission enters has come back to pre-crisis level. Nevertheless, as the office. This new political set-up will govern Europe for global sawn timber supply - demand balance remains the next five years. During the second semester of 2019, sensitive, the recent storms and beetle damages in the new Members of the European Parliament, 27 new Central Europe are affecting the markets. Going forward European Commissioners and the new European Council the industry will have to be ready to react locally but President will be appointed and frame the new political act globally to the market disturbances the weather priorities that will be translated into political actions and anomalies create. legislation through an active participation of interested stakeholders. The European Organisation of the Sawmill At EOS, we are very satisfied that on 1st February 2019, Industry is one of the many Brussels-based organisations the EU and Japan’s Economic Partnership Agreement voicing the concerns of the manufacturing sector in entered into force. Japan is European sawmill industries’ Europe and striving for an industry-oriented Europe able long standing and important market and now tariffs on all to compete on a global level playing field. In doing so, wood products will be progressively fully eliminated, with EOS actively participates in the European consultations seven years staging for the most important priorities. Most and working groups; it is one of the organisers of the Club tariffs on wood products will be dropped immediately, du Bois - cross-party discussion forums aiming to create with some less important tariff lines being scrapped after a sustained dialogue with Members of the European 10 years. Traditionally, Japan has a high propensity to Parliament on all EU legislative issues affecting the use wood as a building material. Wooden housing starts sector in Europe - and it regularly consults its Members. in Japan hover around 55-58% of total housing starts (for Adopting its position papers and visions on unanimous comparison, precise figures for Europe are missing, but basis, EOS has been and continues to be the voice of the estimates suggest that wooden housing starts make up sawmill Industry in Europe. around 10% of total housing starts). Together with Egypt, China, and the United States, Japan is the largest extra- The past year has been favorable to our industry in many European market for the European sawmill industry as levels; demand has been strong in all major markets, regards traditional sawn timber products. Japan is also an production volumes have developed positively with important importer of engineered wood-products such as available raw material and the industry has started to cross laminated timber and glue laminated timber. invest in improving efficiencies. Building from wood particularly with new engineered wood products is The European Union plays a growing role in many areas growing across the globe and also at our home market in affecting the building sector and in the perception of 5 EOS ANNUAL REPORT 2018 - 2019 © Shutterstock wooden materials. This is why EOS actively participates development. EOS advocates for European policies in all EU discussions and policy areas that might open that balance environmental, social and economic opportunities to boost the competitiveness of the aspects. Sustainably managed forests and products sawmill industries and reinforce the recognition of wood derived from these forests play an essential role in as an environmentally-friendly building material. mitigating climate change by reducing greenhouse gases emissions and contribute to an environmental-friendly Unlike other building materials which generate a large economic growth. The positive effects of using wood amount of carbon dioxide during production, wood from sustainably managed forests can be strengthened sequesters the carbon dioxide absorbed during growth if actions are taken to use more long-life wood products. even after it has been turned into lumber. Among the For this reason, on the 21st of March 2019 our organisation major construction materials, wood provides the lowest celebrated the International Forest Day by co-hosting life-cycle impact, and architects and engineers have a high-level discussion where representatives of the increasingly turned their attention to using it to lessen industry and of green interests confirmed together their the environmental burdens associated with the building commitment to identifying solutions for a sustainable sector.
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